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In evolutionary models of indirect reciprocity, reputation mechanisms can stabilize cooperation even in severe … cooperation problems like the prisoner's dilemma. Under certain circumstances, conditionally cooperative strategies, which … lead to a breakdown of this kind of indirectly reciprocal cooperation. Backward induction, however, requires strategies …
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This paper examines the effect that the coexistence of small and large banks, with different interests in the international market, has on the debt renegotiation process. Making use of a reputational model, we argue that the presence of small banks implies that debtor countries have a harder...
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