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Cooperative Behavior and the Frequency of Social Interaction

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  • John Duffy
  • Jack Ochs

Abstract

We report results from an experiment that examines play in an indefinitely repeated, 2-player Prisoner’s Dilemma game. Each experimental session involves N subjects and a sequence of indefinitely repeated games. The main treatment consists of whether agents are matched in fixed pairings or matched randomly in each indefinitely repeated game. Within the random matching treatment, we vary the information that players have about their opponents. Contrary to a theoretical possibility suggested by Kandori (1992), a cooperative norm does not emerge in the treatments where players are matched randomly. On the other hand, in the fixed pairings treatment, the evidence suggests that a cooperative norm does emerge as players gain more experience.

Suggested Citation

  • John Duffy & Jack Ochs, 2006. "Cooperative Behavior and the Frequency of Social Interaction," Working Paper 274, Department of Economics, University of Pittsburgh, revised Jul 2008.
    • Handle: RePEc:pit:wpaper:274
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    References listed on IDEAS

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    Cited by:

    1. Mago, Shakun Datta & Pate, Jennifer G., 2009. "An experimental examination of competitor-based price matching guarantees," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 342-360, May.
    2. Yong-Ju Lee, 2011. "On the Prevalence of Online Trade among Strangers: A Game-Theoretic Explanation," Korean Economic Review, Korean Economic Association, vol. 27, pages 139-161.
    3. Shakun Datta Mago & Emmanuel Dechenaux, 2009. "Price leadership and firm size asymmetry: an experimental analysis," Experimental Economics, Springer;Economic Science Association, vol. 12(3), pages 289-317, September.

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