Voluntary Partnerships and Cooperation: An Experimental Study

43 Pages Posted: 27 Jul 2023 Last revised: 5 Aug 2023

See all articles by Takako Fujiwara-Greve

Takako Fujiwara-Greve

Keio University - Faculty of Economics

Naoko Nishimura

Ritsumeikan University

Masahiro Okuno-Fujiwara

University of Tokyo - Faculty of Economics

Nobue Suzuki

Komazawa University

Date Written: July 26, 2023

Abstract

We conducted an experiment on the Voluntarily Separable Repeated Prisoner's Dilemma, which adds staying and leaving options after each round in a repeated Prisoner's Dilemma (RPD). Furthermore, we introduce the doubly-stochastic horizon, where the supergame and two pairs are terminated randomly after every round. We found that the average pair continuation rate is only 0.545, but the individual C rate quickly goes to 1 in continued partnerships. The subjects' behavior is non-Markov and tolerant for up to 5-6 periods to aim for cooperation. The social, all-round average C rate is slightly but significantly higher than that of RPD.

Keywords: Experiment, voluntary partnerships, repeated Prisoner's Dilemma, cooperation, messages

JEL Classification: C91, C73

Suggested Citation

Fujiwara-Greve, Takako and Nishimura, Naoko and Okuno-Fujiwara, Masahiro and Suzuki, Nobue, Voluntary Partnerships and Cooperation: An Experimental Study (July 26, 2023). Available at SSRN: https://ssrn.com/abstract=4521316 or http://dx.doi.org/10.2139/ssrn.4521316

Takako Fujiwara-Greve (Contact Author)

Keio University - Faculty of Economics ( email )

2-15-45 Mita, Ninato-ku
Tokyo 1088345
Japan

Naoko Nishimura

Ritsumeikan University ( email )

1-1-1
Noji-higashi
Kusatsu, Shiga 525-8577
Japan

Masahiro Okuno-Fujiwara

University of Tokyo - Faculty of Economics ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

Nobue Suzuki

Komazawa University ( email )

1-23-1 Komazawa
Setagaya-ku
Tokyo, 1548525
Japan

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