Cooperation in Experimental Games of Strategic Complements and Substitutes
CentER Discussion Paper Series No. 2006-48
22 Pages Posted: 26 Jul 2006
Date Written: March 2006
Results are reported of a laboratory experiment aimed at examining whether strategic substitutability and strategic complementarity have an impact on the tendency to cooperate in two-player dominance-solvable games with a Pareto-inefficient Nash equilibrium. We find that there is significantly more cooperation when actions exhibit strategic complementarities than in case of strategic substitutes.
Keywords: experiments, cooperation, strategic substitutes and complements, externalities
JEL Classification: C7, C9, L1
Suggested Citation: Suggested Citation