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The Enemy of my Enemy

Author

Listed:
  • Alessandro Stringhi

    (Università degli Studi di Siena)

  • Sara Gil-Gallen

    (Institute of Cognitive Sciences and Technologies, Italian National Research Council)

  • Andrea Albertazzi

    (IMT School for Advanced Studies Lucca)

Abstract

This paper studies how competition between groups affects cooperation. In the control condition, pairs of subjects play an indefinitely repeated Prisoner s Dilemma game without external competition. In the treatment, two pairs compete against each other. No monetary rewards are tied to winning, isolating the bare impact of competition. In the treatment, cooperation increases by 16 percentage points. Strategies estimation shows a shift from selfish strategies (Always Defect) to cooperative ones (Grim Trigger). A theoretical model provides a rationale for the experimental results.

Suggested Citation

  • Alessandro Stringhi & Sara Gil-Gallen & Andrea Albertazzi, 2025. "The Enemy of my Enemy," Working Papers 2025.03, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2025.03
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    More about this item

    Keywords

    Competition; Cooperation; Prisoner s Dilemma; Repeated game;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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