Intragroup punishment and intergroup conflict aversion weaken intragroup cooperation in finitely repeated games

Jonathan Tan and Friedel Bolle

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2023, vol. 105, issue C

Abstract: We experimentally analyze group-specific social preferences and dynamic strategies in finitely repeated games where helping partners hurts rivals. Cooperation with partners decreases when it inflicts losses on rivals, even when it is socially efficient. Cooperation decreases with rivalry, while it increases with synergy and previous cooperation by partners but not rivals. Our structural model of bounded rationality estimates preferences and strategies. It shows that participants anticipate future payoffs from partner cooperation and punish partner defection with unyielding defection, while further averting intergroup conflict due to altruism towards rivals. Intragroup cooperation and intergroup conflict weaken over time through these two channels.

Keywords: Cooperation; Conflict; Altruism; Quantal response; Finitely repeated games (search for similar items in EconPapers)
JEL-codes: C72 C91 D74 D91 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:105:y:2023:i:c:s2214804323000605

DOI: 10.1016/j.socec.2023.102034

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