Sequential Prisoners Dilemma

Question 1

What does Cox (2004) find in SPD games?

Answer 1

~67% of first movers cooperate.
~40% of second movers reciprocate
-> Suggests behaviour is influenced by trust and kindness, not backward induction.

Question 2

What concept does Rabin (1993) introduce?

Answer 2

Fairness equilibrium: people respond to perceived intentions, not just outcomes

People reward kind intentions with cooperation

Explains why P2 might
cooperate even when
Defection offers a higher payoff.

Question 3

What does the trust game by Berg, Dickhaut & McCabe (1995) show?

Answer 3

It shows a similar pattern of trust and reciprocation.
Second movers engage in conditional cooperation

Question 4

What do Falk et al. (2008) do in their study?

Answer 4

They disentangle intention vs outcome motivations. Cooperation may reflect focus on outcomes, not intentions.
-> Strategic behaviour may look like reciprocity.

Question 5

What do Andreoni & Miller (2002) find about repeated SPD rounds?

Answer 5

Repeated SPD rounds alter behavior over time.
In repeated SPD rounds, players mimic reciprocity.
-> Suggests that strategic learning, not intrinsic fairness, explains cooperation

Question 6

What does Burnham et al. (2000) find about framing SPD?

Answer 6

Framing the game as a ‘business transaction’ reduces cooperation.
-> Context and wording matter - framing alters perceived fairness.