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Persistent link: https://www.econbiz.de/10011296505
From the perspective of competitors, competition may be modeled as a prisoner's dilemma. Setting the monopoly price is cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit is highest if only the competitor(s) is (are)...
Persistent link: https://www.econbiz.de/10008822475
Both in the field and in the lab, participants frequently cooperate, despite the fact that the situation can be modelled as a simultaneous, symmetric prisoner’s dilemma. This experiment manipulates the payoff in case both players defect, and explains the degree of cooperation by a combination...
Persistent link: https://www.econbiz.de/10009573481
If two players of a simultaneous symmetric one-shot prisoner's dilemma hold standard prefer-ences, the fact that choosing the cooperative move imposes harm on a passive outsider is imma-terial. Yet if participants hold social preferences, one might think that they are reticent to impose harm on...
Persistent link: https://www.econbiz.de/10009490177
rely on a standard theory from behavioral economics, inequity aversion, to offer an explanation. This theory could also … explain how imperfect criminal sanctions deter crime. The critical component of the theory is aversion against outperforming … others. To test this theory, we exploit that it posits inequity aversion to be a personality trait. We can therefore test it …
Persistent link: https://www.econbiz.de/10009723560
According to Adam Smith (1790), human selfishness can be restrained by introspection. We test the effect of introspection on people’s willingness to cooperate in a public good game. Drawing on the concept of identity utility (George A. Akerlof and Rachel E. Kranton, 2000), we show...
Persistent link: https://www.econbiz.de/10010459020
Persistent link: https://www.econbiz.de/10010395633
rely on a standard theory from behavioral economics, inequity aversion, to offer an explanation. This theory could also … explain how imperfect criminal sanctions deter crime. The critical component of the theory is aversion against outperforming … others. To test this theory, we exploit that it posits inequity aversion to be a personality trait. We can therefore test it …
Persistent link: https://www.econbiz.de/10013084563
How do actual prisoners solve their proverbial dilemma? In a lab experiment, conducted in a German prison for male juvenile offenders, we find that prisoners are no less cooperative than students in a symmetric two-person prisoner's dilemma. Using data from post-experimental tests, we explain...
Persistent link: https://www.econbiz.de/10013002815
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