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We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched pairs play an infinitely repeated Prisoner's Dilemma. Higher matching efficiency is usually considered detrimental as it creates stronger incentives for defection. We point out,...
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We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched pairs play an infinitely repeated Prisoner's Dilemma. Higher matching efficiency is usually considered detrimental as it creates stronger incentives for defection. We point out,...
Persistent link: https://www.econbiz.de/10013331070
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cooperation and defection, and that in well-defined circumstances, a large span of information leads to an end of cooperation …
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coexistence of cooperation and defection, and that in well-defined circumstances, a large span of information leads to an end of … cooperation, whereas a small span does not. Conditions are outlined under which, when individuals' optimization is based on the …
Persistent link: https://www.econbiz.de/10012718372