Gradual Cooperation in the Existence of Outside Options
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概要
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The paper shows that efficient cooperation processes exhibit gradualism when eachplayer does not know the likelihood that the other player exercises a stochasticallyavailableoutside option. Two players, asymmetrically informed on this likelihood,play an infinitely-repeated prisoner's dilemma game. Each player is either the hightype with the high probability to obtain the outside option or the low type. As timeproceeds with neither player exercising the outside option, each player puts moreprobability on the belief that his partner is the low type, enabling the players to raisecooperation levels in the efficient pooling equilibrium.
- Elsevier Science B.V.の論文
- 2008-11-00
Elsevier Science B.V. | 論文
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