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Unrewarded Cooperation

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Abstract

Experiment participants in a social dilemma game choose cooperation over defection, even though neither is more beneficial. High levels of cooperation cannot be explained by favorable labels for actions, collusion, k-level reasoning, quantal response behavior, or misplaced optimism about others' actions, but can be rationalized by the Charness and Rabin (2002) preference model. However, cooperation rates fall with changes in payoffs, which cannot be explained by the standard formulation; to account for these results, we introduce a generalization of the model.

Suggested Citation

  • Konovalov, Arkady & Luzyanin, Daniil & Popov, Sergey V., 2025. "Unrewarded Cooperation," Cardiff Economics Working Papers E2025/10, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2025/10
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    File URL: http://carbsecon.com/wp/E2025_10.pdf
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    More about this item

    Keywords

    cooperation; coordination; social preferences;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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