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Prior interaction, identity, and cooperation in the Inter-group Prisoner's Dilemma

Published on Oct 1, 2019in Journal of Economic Behavior and Organization1.40
· DOI :10.1016/j.jebo.2019.08.002
Timothy N. Cason35
Estimated H-index: 35
(Purdue University),
Sau-Him Paul Lau13
Estimated H-index: 13
(HKU: University of Hong Kong),
Vai-Lam Mui13
Estimated H-index: 13
(Monash University)
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Abstract
Abstract This paper studies theoretically and experimentally how success in prior interaction affects cooperation in the one-shot Inter-group Prisoner's Dilemma (IPD). We develop a model of the IPD that incorporates group-contingent social preferences and bounded rationality to derive conditions under which an increase in pro-social concerns for an out-group will increase cooperation. We then report an experiment that shows the cooperation rate increases from 8 percent in a baseline one-shot IPD to 42 percent when the IPD is preceded by a coordination game played by members of the two groups. A post-experiment survey and chat coding results using a natural language classification game both show that successful prior interaction increases individuals’ concerns for their out-group.
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