We present results from a novel experiment on the effect of a policy designed to encourage cooperation in a prisoner's dilemma game. We find that the effect of this policy on the level of cooperation is greater when it was chosen democratically by the subjects than when it was exogenously...

While there is an extensive literature on the theory of in finitely repeated games, empirical evidence on how “the shadow of the future” affects behavior is scarce and inconclusive. We simulate in finitely repeated prisoner’s dilemma games in the lab by having a random continuation rule....