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Decision making in the prisoner's dilemma game: The effect of exit on cooperation and social welfare

Published on Jan 1, 2019in Journal of Behavioral Decision Making1.79
· DOI :10.1002/bdm.2096
Tessa Haesevoets4
Estimated H-index: 4
(UGent: Ghent University),
Dries H. Bostyn5
Estimated H-index: 5
(UGent: Ghent University)
+ 2 AuthorsAlain Van Hiel36
Estimated H-index: 36
(UGent: Ghent University)
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Abstract
The prisoner's dilemma game is a mixed-motive game that offers two players the simultaneous choice between a cooperative and a defective alternative. An often neglected aspect of such a binary-choice game, however, is that in many real-life encounters, people can choose not only to cooperate or defect, but they also have a third option: to exit the social dilemma. Although in the literature a consensus has emerged that the addition of an exit opportunity benefits cooperation, there is only scant research into its effect on social welfare. In order to allow a direct comparison of cooperation rates and welfare levels across binary-choice and trinary-choice games, in this study, we used a design in which the same participants played similar games with and without an exit option (i.e., a within-subjects design), and this in a range of structural variations. The findings of our study indicated that the aggregated outcome of both players is generally lower in games with an exit option than in games without an exit option. Moreover, our results showed that the efficiency of the exit option strongly depends on the specific outcome structure of the game (in terms of its endowment size, (a)symmetry, and level of noncorrespondence). In the discussion, it is argued that the implementation of an exit option as a strategy to increase social welfare should be critically assessed.
  • References (45)
  • Citations (1)
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References45
Newest
Published on Dec 1, 2017in Journal of Behavioral Decision Making1.79
Ppfm Philippe van de Calseyde2
Estimated H-index: 2
(TU/e: Eindhoven University of Technology),
Gb Gideon Keren23
Estimated H-index: 23
(Tilburg University),
Marcel Zeelenberg54
Estimated H-index: 54
(Tilburg University)
A common solution to mitigate risk is to buy insurance. Employing the trust game, we find that buying insurance against the risk of betrayal has a hidden cost: trustees are more likely to act opportunistically when trustors choose to be insured against the breach of trust. Supposedly, trustees are less likely to cooperate when trustors buy insurance because choosing insurance implicitly signals that the trustor expects the trustee to behave opportunistically, paradoxically encouraging trustees n...
Published on Jul 1, 2016in Evolution and Human Behavior2.96
Pat Barclay16
Estimated H-index: 16
(U of G: University of Guelph),
Nichola J. Raihani23
Estimated H-index: 23
(UCL: University College London)
Two factors that promote cooperation are partner choice and punishment of defectors, but which option do people actually prefer to use? Punishment is predicted to be more common when organisms cannot escape bad partners, whereas partner choice is useful when one can switch to a better partner. Here we use a modified iterated Prisoner’s Dilemma to examine people’s cooperation and punishment when partner choice was possible and when it was not. The results show that cooperation was higher when peo...
Published on Oct 1, 2013in Journal of Economic Psychology1.56
Shaul Shalvi20
Estimated H-index: 20
(UvA: University of Amsterdam),
Gaby Reijseger4
Estimated H-index: 4
(UU: Utrecht University)
+ 4 AuthorsC.K.W. de Dreu71
Estimated H-index: 71
(UvA: University of Amsterdam)
In bargaining, buyers aim to spend as little money as they can on the items they seek to purchase. Compared to promotion-oriented people, prevention-oriented people seek to avoid losses rather than to secure gains. Employing different negotiation scenarios, three lab experiments tested the prediction that prevention-oriented buyers would thus display higher negotiation aversion than promotion-oriented buyers. Results showed that prevention-oriented people in the role of a potential buyer were wi...
Paul A. M. Van Lange10
Estimated H-index: 10
(VU: VU University Amsterdam),
Jeff Joireman32
Estimated H-index: 32
(VU: VU University Amsterdam)
+ 1 AuthorsEric van Dijk44
Estimated H-index: 44
(VU: VU University Amsterdam)
Broadly defined, social dilemmas involve a conflict between immediate self-interest and longer-term collective interests. These are challenging situations because acting in one’s immediate self-interest is tempting to everyone involved, even though everybody benefits from acting in the longer-term collective interest. As such, greater knowledge of social dilemmas should help us understand not only the theoretical puzzles of why people cooperate (or not) but also the ways in which cooperation in ...
David G. Rand43
Estimated H-index: 43
,
Samuel Arbesman9
Estimated H-index: 9
,
Nicholas A. Christakis75
Estimated H-index: 75
Human populations are both highly cooperative and highly organized. Human interactions are not random but rather are structured in social networks. Importantly, ties in these networks often are dynamic, changing in response to the behavior of one's social partners. This dynamic structure permits an important form of conditional action that has been explored theoretically but has received little empirical attention: People can respond to the cooperation and defection of those around them by makin...
Published on Aug 1, 2010in Nature43.07
Karl Sigmund59
Estimated H-index: 59
(WU: Vienna University of Economics and Business),
Hannelore De Silva5
Estimated H-index: 5
(MPG: Max Planck Society)
+ 1 AuthorsChristoph Hauert37
Estimated H-index: 37
(IIASA: International Institute for Applied Systems Analysis)
Cooperation in evolutionary games can be stabilized through punishment of non-cooperators, at a cost to those who do the punishing. Punishment can take different forms, in particular peer-punishment, in which individuals punish free-riders after the event, and pool-punishment, in which a fund for sanctioning is set up beforehand. These authors show that pool-punishment is superior to peer-punishment in dealing with second-order free-riders, who cooperate in the main game but refuse to contribute...
Published on Jun 1, 2010in Public Choice0.97
Peter Kurrild-Klitgaard10
Estimated H-index: 10
(UCPH: University of Copenhagen)
Elinor Ostrom and the Bloomington School’s important contributions include the development of the concept of “polycentric” political systems and the demonstration that solutions to common-pool resource problems may be solved voluntarily by rational individuals, even in situations that resemble Prisoners’ Dilemmas. The program, however, pays little attention to how individuals’ ability to exit may affect the interaction in Prisoners’ Dilemma-like situations, for worse or better. We argue why this...
Published on Jun 1, 2009in Social Cognition1.25
Femke S. Ten Velden11
Estimated H-index: 11
(UvA: University of Amsterdam),
Bianca Beersma21
Estimated H-index: 21
,
C.K.W. de Dreu71
Estimated H-index: 71
(UvA: University of Amsterdam)
Although negotiators' motivation has long been a central topic of inquiry, little is known about the effects of competitive motivation on negotiator cognition and behavior. This study addresses these issues by integrating Goal Expectation Theory (Pruitt & Kimmel, 1977), Regulatory Focus Theory (Higgins, 1998), and the Motivated Information Processing Model of Negotiation (De Dreu & Carnevale, 2003). We distinguish between two forms of competitive motivation: Appetitive competition (the desire to...
Published on Nov 1, 2006in The American Economic Review4.10
Falk Armin50
Estimated H-index: 50
,
Michael Kosfeld18
Estimated H-index: 18
We analyze the consequences of control on motivation in an experimental principalagent game, where the principal can control the agent by implementing a minimum performance requirement before the agent chooses a productive activity. Our results show that control entails hidden costs since most agents reduce their performance as a response to the principal?s controlling decision. Overall, the effect of control on the principal?s payoff is nonmonotonic. When asked for their emotional perception of...
Cited By1
Newest
Published on Jul 1, 2019in Current opinion in psychology
Eric van Dijk44
Estimated H-index: 44
(LEI: Leiden University),
C.K.W. de Dreu71
Estimated H-index: 71
(UvA: University of Amsterdam),
Jörg Gross4
Estimated H-index: 4
(LEI: Leiden University)
Economic games offer an analytic tool to examine strategic decision-making in social interactions. Here we identify four sources of power that can be captured and studied with economic games – asymmetric dependence, the possibility to reduce dependence, the ability to punish and reward, and the use of knowledge and information. We review recent studies examining these distinct forms of power, highlight that the use of economic games can benefit our understanding of the behavioral and neurobiolog...
View next paperExit Option Can Make Cooperation Easier