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Rewarding cooperation in social dilemmas

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  • Lugo, Haydeé

Abstract

One of the most direct human mechanisms of promoting cooperation is rewarding it. We study the effect of sharing a reward among cooperators in the most stringent form of social dilemma. Thus, individuals confront a new dilemma: on the one hand, they may be inclined to choose the shared reward despite the possibility of being exploited by defectors; on the other hand, if too many players do that, cooperators will obtain a poor reward and defectors will outperform them. By appropriately tuning the amount to be shared we can cast a vast variety of scenarios, including traditional ones in the study of cooperation as well as more complex situations where unexpected behavior can occur. We provide a complete classification of the equilibria of the nplayer game as well as of the evolutionary dynamics. Beyond, we extend our analysis to a general class of public good games where competition among individuals with the same strategy exists.

Suggested Citation

  • Lugo, Haydeé, 2007. "Rewarding cooperation in social dilemmas," UC3M Working papers. Economics we075227, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:we075227
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    References listed on IDEAS

    as
    1. Ross Cressman, 2003. "Evolutionary Dynamics and Extensive Form Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262033054, April.
    2. Haydée Lugo & Raúl Jiménez, 2006. "Incentives to Cooperate in Network Formation," Computational Economics, Springer;Society for Computational Economics, vol. 28(1), pages 15-27, August.
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    Cited by:

    1. Peña, Jorge & Lehmann, Laurent & Nöldeke, Georg, 2013. "Gains from switching and evolutionary stability in multi-player matrix games," Working papers 2013/13, Faculty of Business and Economics - University of Basel.

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