Template-Type: ReDIF-Paper 1.0
Author-Name: Anujit Chakraborty
Author-Name-First: Anujit
Author-Name-Last: Chakraborty
Author-Workplace-Name: Department of Economics, University of California Davis
Title: Motives Behind Cooperation in Finitely Repeated Prisoner's Dilemma
Abstract: This paper deploys a novel experiment to compare four theories that explain both selfish and non-selfish cooperation. The four theories capture incomplete information (à la Kreps et al. (1982)) alongside the following four non-selfish motives: caring about others (Altruism), being conscientious about cooperation (Duty), enjoying social-efficiency (Efficiency-Seeking), and reciprocity (Sequential Reciprocity). Our experimental design varies the decline-rate of future rewards, under which these theories make contrasting predictions. We find that Efficiency-Seeking is the other-regarding behavior that fits the experimental data best. A Finite Mixture Model analysis finds that 40-49% of our subjects are selfish, 36-45% are Efficiency-seeking, 1-4% are Duty players, and 6-20% are Altruistic.
Length: 76
File-URL: https://repec.dss.ucdavis.edu/files/QRHL6UZMxrmUg3PenfvdXFLF/FRPD_GEB_mar2023.pdf
File-Format: application/pdf
Number: 353
Classification-JEL: C72, C73, C92
KeyWords: 
Creation-Date: 20220915
Handle: RePEc:cda:wpaper:353