Showing 1 - 10 of 2,174
Repeated interactions provide a prominent but paradoxical hypothesis for human cooperation in one-shot interactions 1 … mechanism reliably supports the evolution of cooperation when actions vary continuously. Ambiguous reciprocity, a strategy … generally ruled out in models of reciprocal altruism, completely undermines cooperation under repeated interactions, which …
Persistent link: https://www.econbiz.de/10014240476
hampers cooperation, as higher intelligence players are less cooperative once they are made aware that they play against …
Persistent link: https://www.econbiz.de/10013322849
We experimentally examine how the incentive to defect in a social dilemma affects conditional cooperation. In our first … conditional cooperation is higher when the own gain from defecting is lower and when the loss imposed on the first mover from … role of social preferences in conditional cooperation …
Persistent link: https://www.econbiz.de/10014077010
mediated by differences in cognitive skills. Our design uses a Repeated Prisoner's Dilemma, and we compare rates of cooperation … higher cooperation rates and profits than in separated groups (with consistent gains among lower IQ subjects and relatively … evolutionary game theory model, where higher IQ among subjects determines - through better working memory - a lower frequency of …
Persistent link: https://www.econbiz.de/10012842383
We analyze a repeated principal-agent setting in which the principal cares about the agent’s verifiable effort as well as an extra profit that can be generated only if the agent is talented. The agent is overconfident about his talent and updates beliefs using Bayes’ rule. An exploitation...
Persistent link: https://www.econbiz.de/10014347990
theory, while sociological theories of social ties and intergroup comparisons suggest that bilateral cooperation can be … implemented by letting subjects make a positive contribution to a public good if they choose to defect from cooperation, i ….e. cooperation is collusive since the gains are at the expense of the public. We find that this negative externality increases …
Persistent link: https://www.econbiz.de/10012892045
We analyze the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....
Persistent link: https://www.econbiz.de/10013296270
Many cartels are formed by individual managers of different firms, but not by firms as collectives. However, most of the literature in industrial economics neglects individuals’ incentives to form cartels. Although oligopoly experiments reveal important insights on individuals acting as firms,...
Persistent link: https://www.econbiz.de/10013296722
Sophisticated collusive compensation schemes such as assigning future market shares or direct transfers are frequently observed in detected cartels. We show formally why these schemes are useful for dampening deviation incentives when colluding firms are temporary asymmetric. The relative...
Persistent link: https://www.econbiz.de/10013310765
This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free-form chat communication among firms in a laboratory experiment, we identify typical communication patterns for both explicit cartel formation and indirect attempts to collude...
Persistent link: https://www.econbiz.de/10014243096