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Revisiting Strategic versus Non-strategic Cooperation

Ernesto Reuben () and Sigrid Suetens

No 2009-22, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: We use a novel experimental design to disentangle strategically- and non-strategically-motivated cooperation. By using contingent responses in a repeated sequential prisoners’ dilemma with a known probabilistic end, we differentiate end-game behavior from continuation behavior within individuals while controlling for expectations. This design allows us to determine the extent to which strategically-cooperating individuals are responsible for the so-called endgame effect. Experiments with two different subject pools indicate that the most common motive for cooperation in repeated games is strategic and that the extent to which endgame effects are driven by strategically-cooperating individuals depends on the profitability of cooperation.

JEL-codes: C91 D01 D74 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-cse, nep-exp, nep-gth and nep-soc
Date: 2009
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