논문목차

논문목차

Ability-based Cooperation in a Prisoner’s Dilemma Game
  • Author
    Hanjoon Michael Jung (The Institute of Economics)
  • Year
    2012
  • Volume
    Vol.28
  • Number
    No.2
  • This paper studies the possibility of whole population cooperation based on different
    abilities of players. Consider the following infinitely repeated game, similar to Ghosh and
    Ray (1996). At each stage, uncountable numbers of players, who are randomly matched
    without information about their partners’ past actions, play a prisoner’s dilemma game. The
    players have the option to continue their relationship, and they all have the same discount
    factor. Also, they have two possible types: high ability player (H) or low ability player (L). H
    can produce better outcomes for his partner as well as for himself than L can. We look for an
    equilibrium that is robust against both pair-wise deviation and individual deviation, and
    call such equilibrium a social equilibrium. In this setting, long-term cooperative behavior
    among the whole population can take place in a social equilibrium because of the players’
    preference for their partners’ ability. In addition, a folk theorem of this model is proposed.
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