Cooperation under the Shadow of Political Inequality
49 Pages Posted: 5 Jul 2023
Date Written: June 30, 2023
Abstract
We study cooperation among individuals and groups facing a dynamic social dilemma in which the benefits of cooperation are divided according to political power obtained in a contest. The main theoretical and experimental results focus on the role of the incumbency advantage. Specifically, an incumbency advantage in the political contest leads to a rapid breakdown of cooperation in the social dilemma. In addition, we provide simulations based on the individual evolutionary learning model of Arifovic and Ledyard (2012) to shed light on the difference between the behavior of individuals and groups.
Keywords: Dynamic Games, Cooperation, Coordination, Contest, Experiments, Group Decision Making
JEL Classification: C73, C92, D91
Suggested Citation: Suggested Citation