Cooperation in an Overlapping Generations Experiment

Arbeitspapier

Recent theoretical work shows that folk theorems can be developed for infiniteoverlapping generations games. Cooperation in such games can be sustained as aNash equilibrium. Besides the efficient cooperative equilibrium there is alsothe inefficient non-cooperative equilibrium. This paper investigatesexperimentally whether cooperation actually occurs in a simple overlappinggenerations game. Subjects both play the game and formulate full strategies. Inour base-line treatment subjects fail to exploit the intertemporal structure ofthe game. When we provide subjects with a recommendation to play a (subgameperfect) grim trigger strategy, a substantial part of the population developstrigger-like strategies. However, a remaining group of unconditional defectorsprevents the cooperative outcome to evolve.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 99-019/1

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Design of Experiments: Laboratory, Group Behavior ; Micro-Based Behavioral Economics: General‡
• Subject: overlapping generations ; cooperation ; trigger strategies ; experiments ; Overlapping Generations ; Kooperatives Spiel ; Test ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Offerman, Theo ; Verbon, Jan PottersHarry A.A. ; Verbon, Harry A.A.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 1999

Further information

• Handle: http://hdl.handle.net/10419/85644
• Last update: 10.03.2025, 11:42 AM CET