Intelligence Disclosure and Cooperation in Repeated Interactions

Eugenio Proto, Marco Lambrecht, Aldo Rustichini and Andis Sofianos

No 16656, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We investigate in a laboratory setting whether revealing information on intelligence affects behavior in games with repeated interactions. In our experimental design we communicate information on the cognitive ability of both players. We use three stage games: Prisoners' Dilemma (PD) and two versions of Battle of Sexes (BoS), with high and low payoff inequality. We find that the information affects strategic behavior significantly in two distinct ways. In PD, disclosure markedly hampers cooperation, as higher intelligence players are less cooperative once they are made aware that they play against someone of lower ability than themselves in the disclosure treatment. Similarly, in BoS with low payoff inequality, disclosure disrupts coordination on outcomes with positive payoffs, as higher intelligence players try to force their most preferred outcome onto the less intelligent. However, in BoS with high payoff inequality, this pattern of behavior dramatically changes. Disclosure does not significantly affect coordination rates. Differently from the low payoff inequality game, coordination is achieved more often on outcomes that favor less intelligent players. We conjecture that when coordination becomes more difficult, because of the high inequality between payoffs, intelligence and inequality together form a coordination device.

Keywords: Repeated prisoners dilemma; Cooperation; Intelligence; Iq (search for similar items in EconPapers)
Date: 2021-10
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP16656 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Intelligence Disclosure and Cooperation in Repeated Interactions (2024)
Working Paper: Intelligence Disclosure and Cooperation in Repeated Interactions (2022)
Working Paper: Intelligence Disclosure and Cooperation in Repeated Interactions (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:16656

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP16656

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().