Finding cooperators: Sorting through repeated interaction
Jack Fanning and
Journal of Economic Behavior & Organization, 2018, vol. 147, issue C, 76-94
We present evidence from an indefinitely repeated gift-exchange game where market structures affect proposers’ ability to punish uncooperative partners and their ability to sort between cooperative and uncooperative partners. Treatments vary by whether subjects can replace their partners, and if not, whether they can reduce their gift from one round to the next. Comparing treatments without contract restrictions, our replacement treatment is no different initially but has higher cooperation in the long run. Comparing treatments without replacement, our treatment with contract restrictions has lower cooperation initially but is no different in the long run. Neither of these findings are predicted by theories of repeated games based on the ability to punish, however, both findings are consistent with a simple sorting model.
Keywords: Repeated games; Relational contracts; Sorting; Market interaction; experiment (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:147:y:2018:i:c:p:76-94
Access Statistics for this article
Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.
More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().