Friday, September 1, 2023 12:00 PM to 1:00 PM EDT
Vernon Smith Hall (formerly Metropolitan Building), 5183
The ICES Seminar in Experimental Economics and Game Theory of the Fall 2023 semester will feature:
University of Richmond
The Infinitely Repeated Volunteer’s Dilemma: An Experimental Study
Abstract
We examine how repeated interaction can facilitate coordinated turn-taking in a two-player infinitely repeated Volunteer’s Dilemma. We conjecture that repetition creates an environment for players to coordinate on the Pareto efficient, but asymmetric pure strategy Nash equilibria of the stage game by taking turns volunteering. We consider three cost treatments: both players have the same cost; one player has a higher cost and this cost assignment is constant; one player has a higher cost and this cost assignment is random. We find that turn-taking is the dominant play when costs are symmetric. When costs are asymmetric, the low-cost player is more likely to volunteer. However, contrary to predictions, asymmetric randomly allocated costs do not perfectly coordinate turn-taking. When costs are asymmetric and constant over time, behavior is markedly heterogeneous.
For more information about the Seminar Series, please visit the Seminar Schedule homepage.
