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It's payback time: new insights on cooperation in the repeated prisoners' dilemma

Bigoni, Maria; Casari, Marco; Salvanti, Andrea; … - 2022

In an experiment on the repeated prisoner’s dilemma where intended actions are implemented with noise, Fudenberg et al. (2012) observe that non-equilibrium strategies of the "tit-for-tat" family are largely adopted. Furthermore, they do not find support for risk dominance of TFT as a...

Persistent link: https://www.econbiz.de/10012805575

Uncertain Repeated Games

Krasikov, Ilia; Lamba, Rohit - 2022

Multiple long run players play one amongst multiple possible stage games in each period. They observe and recall past play and are aware of the current stage game being played, but are maximally uncertain about the future evolution of stage games. This setup is termed an uncertain repeated game....

Persistent link: https://www.econbiz.de/10014076853

Negotiating Cooperation Under Uncertainty : Communication in Noisy, Indefinitely Repeated Interactions

Dvorak, Fabian - 2018

Case studies of cartels and recent theory suggest that repeated communication is key for stable cooperation in environments where signals about others' actions are noisy. However, empirically the exact role of communication is not well understood. We study cooperation under different monitoring...

Persistent link: https://www.econbiz.de/10012908872

Risk and Repeated Games : Is Random Termination a Reasonable Proxy For Discounting?

Candreva, Christopher - 2019

This paper looks to see if departures from risk neutrality cause subjects to behave differently in randomly terminated supergames compared to infinitely discounted supergames. I show that if subjects have a strictly monotonic utility function, and that utility function is applied to their entire...

Persistent link: https://www.econbiz.de/10012901787

Talk to Me : Communication Reduces Uncertainty in Noisy, Indefinitely Repeated Interactions

Dvorak, Fabian - 2020

Case studies of cartels and recent theory suggest that communication promotes cooperation under imperfect monitoring, where actions can only be observed with noise. We report the results of a laboratory experiment designed to answer the question how much communication is needed to sustain...

Persistent link: https://www.econbiz.de/10012854170

Robustness of Reputation Effects under Uncertain Monitoring

Yang, Geyu - 2018

I study reputation effects under uncertain monitoring. I examine a repeated game between a long-run player and a series … uncertainty about the monitoring structure introduces new challenges to reputation building because there may not be a direct … ability to establish a reputation for commitment. I show that, when the short-run players cannot statistically distinguish …

Persistent link: https://www.econbiz.de/10012909525

Differentiating to Reduce Strategic Uncertainty and Relax Competition

Smyth, Andrew - 2022

This paper extends a canonical, game-theoretic framework to examine the relationship between product differentiation and relaxed competition. In its theory, firms compete over an infinite-horizon and discount the future so that relaxed competition is feasible in equilibrium. However, firms face...

Persistent link: https://www.econbiz.de/10014077162

Signalling rivalry and quality uncertainty in a duopoly

Bester, Helmut; Demuth, Juri - 2013

This paper considers price competition in a duopoly with quality uncertainty. The established firm (the `incumbent') offers a quality that is publicly known; the other firm (the `entrant') offers a new good whose quality is not known by some consumers. The incumbent is fully informed about the...

Persistent link: https://www.econbiz.de/10009781393

Reputation Concerns in Risky Experimentation

Chen, Chia‐Hui - 2019

We develop a general model, with the exponential bandit as a special case, in which high-ability agents are more likely to achieve early success but also learn faster that their project is not promising. These counteracting effects give rise to a signaling model in which the single-crossing...

Persistent link: https://www.econbiz.de/10012866872

Fragility of reputation and clustering of risk-taking

Ordoñez, Guillermo - In: Theoretical economics : TE ; an open access journal in … 8 (2013) 3, pp. 653-700

Reputation concerns in credit markets restrain borrowers' temptations to take excessive risk. The strength of these …

Persistent link: https://www.econbiz.de/10011685308