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The Variability of Conditional Cooperation in Sequential Prisoner's Dilemmas

Author

Listed:
  • Simon Gaechter

    (University of Nottingham)

  • Kyeongtae Lee

    (Economic Research Institute, Bank of Korea)

  • Martin Sefton

    (University of Nottingham)

Abstract

We examine how conditional cooperation is related to the material payoffs in a Sequential Prisoner's Dilemma experiment. We have subjects play eight SPDs with varying payoffs, systematically varying the material gain to the second-mover and the material loss to the first-mover when the second-mover defects in response to cooperation. We find that few second-movers are conditionally cooperative in all eight games, and most second-movers change their strategies from game to game. Second-movers are less likely to conditionally cooperate when the gain is higher and when the loss is lower. This pattern is consistent with models of distributional preferences.

Suggested Citation

  • Simon Gaechter & Kyeongtae Lee & Martin Sefton, 2022. "The Variability of Conditional Cooperation in Sequential Prisoner's Dilemmas," Discussion Papers 2022-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2022-10
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    Keywords

    prisoner's dilemma; conditional cooperation;

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