Intelligence, Personality and Gains from Cooperation in Repeated Interactions

169 Pages Posted: 18 Nov 2016

See all articles by Eugenio Proto

Eugenio Proto

CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Aldo Rustichini

University of Minnesota - Twin Cities - Department of Economics

Andis Sofianos

University of Warwick

Date Written: December 1, 2017

Abstract

We study how intelligence and personality affect the outcomes of groups, focusing on repeated interactions that provide the opportunity for profitable cooperation. Our experimental method creates two groups of subjects who have different levels of certain traits, such as higher or lower levels of intelligence, Conscientiousness and Agreeableness, but who are very similar otherwise. Intelligence has a large and positive long-run effect on cooperative behavior. The effect is strong when at the equilibrium of the repeated game there is a tradeoff between short-run gains and long-run losses. Conscientiousness and Agreeableness have a natural, significant but transitory effect on cooperation rates.

Keywords: repeated prisoner’s dilemma, cooperation, intelligence

JEL Classification: C730, C910, C920

Suggested Citation

Proto, Eugenio and Rustichini, Aldo and Sofianos, Andis, Intelligence, Personality and Gains from Cooperation in Repeated Interactions (December 1, 2017). CESifo Working Paper Series No. 6121. Available at SSRN: https://ssrn.com/abstract=2871144

Eugenio Proto (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Aldo Rustichini

University of Minnesota - Twin Cities - Department of Economics ( email )

271 19th Avenue South
Minneapolis, MN 55455
United States

Andis Sofianos

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, CV4 8UW
United Kingdom

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