Second thoughts

Tatsuyoshi Saijo () and Yoshitaka Okano
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Yoshitaka Okano: Kochi University of Technology

No SDES-2014-6, Working Papers from Kochi University of Technology, School of Economics and Management

Abstract: This paper shows that second thoughts are not an innocent device in our daily life, but is human wisdom that plays an important role in resolving problems such as social dilemmas. We design a simple mechanism to achieve Pareto efficiency in social dilemmas, and then compare the performance of this mechanism with and without second thoughts. First, second thoughts change the payoff structure of the game in favor of cooperation. Second, this mechanism is robust even when players deviate from a payoff maximizing behavior.

Keywords: Second thoughts; Social Dilemma; Cooperation; Mechanism design (search for similar items in EconPapers)
JEL-codes: C72 C92 D74 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2014-10, Revised 2015-04
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-gth, nep-hpe and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in SDE Series, April 2015, pages 1-17

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http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2014-6.pdf First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:kch:wpaper:sdes-2014-6

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