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Cooperation, Imitation and Correlated Matching

Author

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  • Javier Rivas

Abstract

We study a setting where imitative players are matched into pairs to play a Prisoners' Dilemma game. A well know result in such setting is that under random matching cooperation vanishes for any interior initial condition. The novelty of this paper is that we add a certain correlation to the matching process: players that belong to a pair were both parties cooperate repeat partner next period whilst all other players are randomly matched into pairs. This intuitive correlation introduced in the matching process makes cooperation the unique outcome in the long run under some conditions. Furthermore, we show that no assortative equilibrium exits.

Suggested Citation

  • Javier Rivas, 2009. "Cooperation, Imitation and Correlated Matching," Discussion Papers in Economics 09/12, Division of Economics, School of Business, University of Leicester, revised Jun 2011.
    • Handle: RePEc:lec:leecon:09/12
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    File URL: https://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp09-12.pdf
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    More about this item

    Keywords

    Cooperation; Correlated Matching; Imitation; Prisoners' Dilemma;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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