Article ID: | iaor2012289 |
Volume: | 72 |
Issue: | 2 |
Start Page Number: | 205 |
End Page Number: | 219 |
Publication Date: | Feb 2012 |
Journal: | Theory and Decision |
Authors: | Bruttel Lisa, Kamecke Ulrich |
Keywords: | statistics: experiment, decision theory |
We introduce a novel mechanism to eliminate endgame effects in repeated prisoner’s dilemma experiments. In the main phase of a supergame our mechanism generates more persistent cooperation than finite horizon or random continuation rules. Moreover, we find evidence for cooperation‐enhancing ‘active/reactive’ strategies which concentrate in the initial phase of a supergame as subjects gain experience.