The Effect of Positive Mood on Cooperation in Repeated Interaction

Eugenio Proto, Daniel Sgroi and Mahnaz Nazneen

No 269091, Economic Research Papers from University of Warwick - Department of Economics

Abstract: Existing research supports two opposing mechanisms through which positive mood might affect cooperation. Some studies have suggested that positive mood produces more altruistic, open and helpful behavior, fostering cooperation. However, there is contrasting research supporting the idea that positive mood produces more assertiveness and inward-orientation and reduced use of information, hampering cooperation. We find evidence that suggests the second hypothesis dominates when playing the repeated Prisoner’s Dilemma. Players in an induced positive mood tend to cooperate less than players in a neutral mood setting. This holds regardless of uncertainty surrounding the number of repetitions or whether pre-play communication has taken place. This finding is consistent with a text analysis of the pre-play communication between players indicating that subjects in a more positive mood use more inward-oriented, more negative and less positive language. To the best of our knowledge we are the first to use text analysis in pre-play communication.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 34
Date: 2017-11-11
New Economics Papers: this item is included in nep-big, nep-exp, nep-gth and nep-neu
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Related works:
Working Paper: The Effect of Positive Mood on Cooperation in Repeated Interaction (2017)
Working Paper: The Effect of Positive Mood on Cooperation in Repeated Interaction (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:269091

DOI: 10.22004/ag.econ.269091

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