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Cooperation among behaviorally heterogeneous players in social dilemma with stay or leave decisions

Author

Listed:
  • Xiaochuan Huang

    (DT Captical Management Co., LTD.)

  • Takehito Masuda

    (Research Center for Social Design Engineering, Kochi University of Technology)

  • Yoshitaka Okano

    (Kochi University of Technology)

  • Tatsuyoshi Saijo

    (Kochi University of Technology)

Abstract

Given the substantial evidence of behavioral heterogeneity in social dilemma experiments, in this study we consider how to achieve cooperation in n-player prisoner's dilemma situations where each player has one behavioral type, either selfish or conditionally cooperative. We introduce a two-stage game form called the stay-leave mechanism, where each cooperator has the chance to revise his choice when players' choices are not unanimous. For homogeneous behavioral type cases, theory predicts that the unique outcome is cooperative under the stay-leave mechanism, regardless of the benefit derived from cooperation. For heterogeneous behavioral type cases, we show that the benefits of cooperation shrink such that the unique outcome is cooperative under the stay-leave mechanism if the number of conditionally cooperative players increases. The average cooperation rate in the stay-leave mechanism experiment is 86.6% across 15 periods, which increases to 96.0% after period 5. We also provide evidence that selfish and conditionally cooperative types coexist throughout the sessions, in the proportion that the equilibrium outcome is cooperative. Our results corroborate the importance of incorporating behavioral heterogeneity into institutional design.

Suggested Citation

  • Xiaochuan Huang & Takehito Masuda & Yoshitaka Okano & Tatsuyoshi Saijo, 2014. "Cooperation among behaviorally heterogeneous players in social dilemma with stay or leave decisions," Working Papers SDES-2014-7, Kochi University of Technology, School of Economics and Management, revised Feb 2015.
    • Handle: RePEc:kch:wpaper:sdes-2014-7
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    Cited by:

    1. Tatsuyoshi Saijo & Takehito Masuda & Takafumi Yamakawa, 2018. "Approval mechanism to solve prisoner’s dilemma: comparison with Varian’s compensation mechanism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(1), pages 65-77, June.
    2. Tatsuyoshi Saijo & Takehito Masuda & Takafumi Yamakawa, "undated". "Approval Mechanism to Solve Prisoner’s Dilemma: Comparison with Varian’s Compensation Mechanism," Working Papers SDES-2016-15, Kochi University of Technology, School of Economics and Management.
    3. Saijo, Tatsuyoshi & Shen, Junyi, 2018. "Mate choice mechanism for solving a quasi-dilemma," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 72(C), pages 1-8.
    4. Tatsuyoshi Saijo, 2019. "Second thoughts of social dilemma in mechanism design," Working Papers SDES-2019-6, Kochi University of Technology, School of Economics and Management, revised Jun 2019.

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    More about this item

    Keywords

    social dilemma; experiment; conditional cooperator; behavioral heterogeneity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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