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Multiple prisoner's dilemma games with (out) an outside option: An experimental study

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  • Esther Hauk

Abstract

Experiments in which subjects play simultaneously several finite prisoner's dilemma supergames with and without an outside option reveal that: (i) subjects use probabilistic start and endeffect behaviour, (ii) the freedom to choose whether to play the prisoner's dilemma game enhances cooperation, (iii) if the payoff for simultaneous defection is negative, subjects' tendency to avoid losses leads them to cooperate; while this tendency makes them stick to mutual defection if its payoff is positive.

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  • Esther Hauk, 1999. "Multiple prisoner's dilemma games with (out) an outside option: An experimental study," Economics Working Papers 391, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:391
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    Cited by:

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    2. S. K. Berninghaus & Werner Gueth & Katinka Pantz & Bodo Vogt, 2004. "Evolution of Spontaneous Social Exchange - An Experimental Study -," Papers on Strategic Interaction 2004-17, Max Planck Institute of Economics, Strategic Interaction Group.
    3. Jones, Matthew T., 2014. "Strategic complexity and cooperation: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 352-366.
    4. Ryutaro Mori & Nobuyuki Hanaki & Tatsuya Kameda, 2024. "An outside individual option increases optimism and facilitates collaboration when groups form flexibly," Nature Communications, Nature, vol. 15(1), pages 1-13, December.
    5. Kene Boun My & Alban Verchere & Stephane Bertrand, 2009. "Does Bilateralism Foster Co‐operation in Europe? An Experimental Approach of Comparative Merits of Bilateralism and Multilateralism," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 891-910, September.
    6. Guido, Andrea & Robbett, Andrea & Romaniuc, Rustam, 2019. "Group formation and cooperation in social dilemmas: A survey and meta-analytic evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 192-209.
    7. Esther Hauk, 2003. "Multiple Prisoner's Dilemma Games with(out) an Outside Option: an Experimental Study," Theory and Decision, Springer, vol. 54(3), pages 207-229, May.
    8. repec:bla:jcmkts:v:47:y:2009:i::p:891-910 is not listed on IDEAS
    9. Dorothée Honhon & Kyle Hyndman, 2020. "Flexibility and Reputation in Repeated Prisoner’s Dilemma Games," Management Science, INFORMS, vol. 66(11), pages 4998-5014, November.
    10. Nosenzo, Daniele & Tufano, Fabio, 2017. "The effect of voluntary participation on cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 307-319.
    11. Daniele Nosenzo & Fabio Tufano, 2015. "Entry or Exit? The Effect of Voluntary Participation on Cooperation," Discussion Papers 2015-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    12. Yang, Yimei & Sun, Hao & Yang, Guangjing & Sun, Yanru, 2024. "Bilateral negotiation facilitates stable coexistence of cooperation with defection in Prisoner's Dilemma game," Applied Mathematics and Computation, Elsevier, vol. 471(C).
    13. John Duffy & Félix Muñoz-García, 2012. "Patience or Fairness? Analyzing Social Preferences in Repeated Games," Games, MDPI, vol. 3(1), pages 1-22, March.
    14. Kurokawa, Shun, 2022. "Evolution of trustfulness in the case where resources for cooperation are sometimes absent," Theoretical Population Biology, Elsevier, vol. 145(C), pages 63-79.
    15. Miriam Al Lily, 2023. "Establishing human connections: experimental evidence from the helping game," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(3), pages 805-832, September.
    16. Mitzkewitz, Michael & Neugebauer, Tibor, 2020. "Can intermediaries assure contracts? Experimental evidence," Games and Economic Behavior, Elsevier, vol. 124(C), pages 354-368.
    17. Esther Hauk & Rosemarie Nagel, 2001. "Choice of Partners in Multiple Two-Person Prisoner's Dilemma Games," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(6), pages 770-793, December.
    18. Francesca Pancotto & Simone Righi & Károly Takács, 2023. "Voluntary play increases cooperation in the presence of punishment: a lab in the field experiment," Theory and Decision, Springer, vol. 95(3), pages 405-428, October.
    19. Claudia Keser & Claude Montmarquette, 2011. "Voluntary versus Enforced Team Effort," Games, MDPI, vol. 2(3), pages 1-25, August.

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    More about this item

    Keywords

    Prisoner's dilemma; cooperation; exit; experiments; loss aversion; Leex;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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