CREED Seminars Amsterdam

Speaker(s)
Erik Mohlin (Lund University, Sweden)
Date
Thursday, 10 March 2016
Location
Amsterdam
We study environments in which agents are randomly matched to play the Prisoner’s Dilemma, and each player observes a few of the partner’s past actions against other opponents. We depart from the existing literature in two key aspects: (1) we allow few agents in the population to be commitment types, and (2) we do not assume a time zero in which the entire community start interacting. We show that the presence of few committed agents destabilizes the existing mechanisms to sustain cooperation, and we present a novel mechanism (which is essentially unique) that sustains stable cooperation in many environments.