Engseld, Peter; Bergh, Andreas - Nationalekonomiska Institutionen, Ekonomihögskolan - 2005
We analyze a cooperation game and a coordination game in an evolutionary environment. Agents make noisy observations of … takes place when two agents agree to play. Socially optimal cooperation is evolutionarily stable when reputation perfectly … reflects propensity to cooperate. With some reputation noise, there will be at least some cooperation. Individual concern for …