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Raub and Snijders (1997) show that, under the assumption of S-shaped utility, conditions for cooperation in social dilemmas are more restrictive if outcomes represent losses than if outcomes represent gains. They neglected two interesting issues in their paper: conditions for cooperation in social dilemmas with both losses and gains as outcomes, and the effect of probability weighing on these conditions. In this paper it is shown that, under assumptions of Prospect Theory, conditions for cooperation are best if dilemmas include both positive and negative outcomes, and that these conditions improve with increasing loss aversion. Furthermore, it is shown that probability weighing can effect conditions to cooperate as well. [ABSTRACT FROM AUTHOR]

We reanalyze the experimental data of Michener et al. (1975, 1977) to explain behavior in pure exchange situations. The data were compared to predictions of various cooperative bargaining models and to the predictions of a bilateral exchange model developed in the present paper. The bilateral exchange model fitted well and performed best. The model could explain asymmetries in actors' exchange outcomes as commonly observed in exchange networks, and that generalized exchange hardly occurred in the experiments. However, systematic deviations from predictions of the bilateral exchange model and other models of rational behavior were observed; actors tend to focus on their absolute preferences rather than on their relative preferences. These deviations could be explained by a boundedly rational model of exchange, assuming that actors use heuristics to detect profitable exchange opportunities. [ABSTRACT FROM AUTHOR]

Recent studies draw attention on the highly specialized capacity of human beings in recognizing altruists versus cheaters in social interactions. These results hint at the existence of specialized abilities that support discriminating behavior in strategic interactions. In this paper, we explore the implications of discriminating behavior in the study of the indirect evolutionary selection of selfish versus altruistic motivations in the context of generic 2×2 base games, and in particular for coordination and cooperation scenarios. We find that inequality averse (Rawlsian) altruism can enforce under rather general conditions socially optimal outcomes, including cases where selfishness cannot, such as in prisoner’s dilemmas. Inequality seeking (Nietzschian) altruism in no case improves upon Rawlsian altruism in terms of social optimality of outcomes, and often does worse. In the cooperation scenario in particular, Nietzschean altruism never manages to implement the cooperative outcome. Under perfect discrimination, moreover, inequality averse (Rawlsian) altruism often evolves at the expense of selfishness. These results suggest that the development of sophisticated discrimination abilities may be strongly adaptive in supporting fairness-oriented forms of pro-sociality in humans in the context of social dilemmas and coordination problems. [ABSTRACT FROM AUTHOR]

Aksoy and Weesie (2013) propose a formal-game-theoretic model that yields comparative statics predictions about the behavior of actors and actors’ expectations about behaviors of others in nonrepeated Prisoner's Dilemma games. They consider five competing specifications of this model. In this note, we present a Bayesian statistical method to test these five competing specifications, taking the hierarchical nature of the data into account. While this paper is a follow-up to Aksoy and Weesie (2013), the method we discuss is suitable to test multiple comparative statics and is, thus, useful to asses the fit of other game-theoretic models. [ABSTRACT FROM PUBLISHER]

In this paper we study the evolutionary selection of socially sensitive preferences in the context of reference interaction settings such as coordination failure and cooperation. We refer to a specific class of socially sensitive preferences in which players weigh additively their own material payoff against the opponent with either a positive or negative coefficient (λ-players). Preference evolution is guided by replicator dynamics in a context of perfect observability of preferences types and stochastic pairwise matching. We take an indirect evolutionary approach, that is, the selection mechanism operates on the actual material payoffs earned by players, so that any instance of socially sensitive preference can be thought of as instrumentally maintained. We find that the evolutionary viability of socially sensitive preferences basically depends on whether or not they cause a substantial improvement in the achievement of socially efficient outcomes with respect to the case where only self-serving or unconditionally focused preference orientations are observed. Our results suggest that moderate pro-social preference orientations are likely to emerge from social selection even in the absence of an intrinsic motivational drive, whereas extremely pro-social orientations as well as competitive and anti-social ones may need a stronger motivational base. [ABSTRACT FROM AUTHOR]

This paper demonstrates the existence of a partial tit-for-tat (matching) strategy which, when used by one player in an iterated "Prisoner's Dilemma" gamey will induce a response of pure cooperation in the other player if that player behaves optimally. The minimum matching frequency of such a strategy is shown to be monotonically related to the Rapoport-Chammah "Cooperation Index". [ABSTRACT FROM AUTHOR]

Cooperation for public goods poses a dilemma, where individuals are tempted to free ride on others' contributions. Classic solutions involve monitoring, reputation maintenance and costly incentives, but there are important collective actions based on simple and cheap cues only, for example, unplanned protests and revolts. This can be explained by an Ising model with the assumption that individuals in uncertain situations tend to conform to the local majority in their network. Among initial defectors, noise such as rumors or opponents' provocations causes some of them to cooperate accidentally. At a critical level of noise, these cooperators trigger a cascade of cooperation. We find an analytic relationship between the phase transition and the asymmetry of the Ising model, which in turn reflects the asymmetry of cooperation and defection. This study thereby shows that in principle, the dilemma of cooperation can be solved by nothing more than a portion of random noise, without rational decision-making. [ABSTRACT FROM AUTHOR]

While it is known that positions in exchange networks are interdependent, little work has been done to develop a systematic procedure to determine the type and pattern of these interdependencies. Wording from an insight by Shubik (1984), this paper proposes a canonical form for such interdependence. The model does not depend on the existence of pre-existing categories of complementary positions, such as buyers and sellers or men and women. The model uses only network position to create classes of positions with linked fates. Simulation and experimental results are presented that support this schema. These findings lay the groundwork for the study of collusion in exchange networks: members of latent classes, who share a common fate, would be likely to form coalitions when free communication exists. [ABSTRACT FROM AUTHOR]

We propose a formal-behavioral framework with 3 components: nonselfish motives, expectations about others' nonselfish motives, and a game-theoretic component. For nonselfish motives, 3 nonstandard utility models representing altruism, inequality aversion, and norms are considered. Expectations are modeled as certain versus uncertain expectations. The game-theoretic component predicts behavior of actors and actors' expectations about behaviors of others. This framework is applied to asymmetric one-shot prisoner's dilemmas; predictions are tested experimentally. Formal analyses show that asymmetry provides new predictions through which nonstandard utility-expectation models can be distinguished. Empirical tests show that the inequality aversion model does considerably worse than altruistic and normative variants. Statistical tests for own motives, expected motives, and the association between the two are provided, while accounting for decision noise. [ABSTRACT FROM PUBLISHER]

In this article, we critically study whether social networks can explain the emergence of cooperative behavior. We carry out an extensive simulation program in which we study the most representative social dilemmas. For the Prisoner's Dilemma, it turns out that the emergence of cooperation is dependent on the microdynamics. On the other hand, network clustering mostly facilitates global cooperation in the Stag Hunt game, whereas degree heterogeneity promotes cooperation in Snowdrift dilemmas. Thus, social networks do not promote cooperation in general, because the macro-outcome is not robust under change of dynamics. Therefore, having specific applications of interest in mind is crucial to include the appropriate microdetails in a good model. [ABSTRACT FROM AUTHOR]

How micromotives, the microstructural features of interactions, and macrobehavior are related is a fundamental question in all social sciences. In this article we argue that laboratory experiments are a useful tool to study this question, because the experimenter can measure motivations, manipulate microstructures, and sometimes even exploit variation in the macrosocial environment. We illustrate the experimental approach with the help of four examples from the context of voluntary cooperation. The examples (from previous and new experiments) illustrate the link between individual pro-social motives and wage formation in labor markets, the inevitability of the 'Tragedy of the Commons,' and two potential ways to avoid the tragedy: sorting and punishment. [ABSTRACT FROM AUTHOR]

We demonstrate with computational simulation scenarios how social environments and individual behavior coevolve and how fundamentally different macro-effects emerge, when separate micromechanisms are combined. Our framework considers social interactions among agents on a spatial grid or in networks. In the Prisoner's Dilemma, neither imitation of more successful strategies nor the migration to more favorable locations can promote cooperation. However, when both microscopic mechanisms are combined, they cause the segregation of cooperators and defectors, and the self-organization of cooperative clusters on the macro-level. These are robust to randomness, while cooperation may break down in a 'globalized society.' The implications for the evolution of norms and institutions are discussed. [ABSTRACT FROM AUTHOR]

This study investigates the influence of resource inequality and the fairness of the allocation procedure of unequal resources on cooperative behavior in social dilemmas. We propose a simple formal behavioral model that incorporates conflicting selfish and social motivations. This model allows us to predict how inequality influences cooperative behavior. Allocation of resources is manipulated by three treatments that vary in terms of procedural justice: allocating resources randomly, based on merit, and based on ascription. As predicted, procedural justice influences cooperation significantly. Moreover, gender is found to be an important factor interacting with the association between procedural justice and cooperative behavior. [ABSTRACT FROM AUTHOR]

We study the ongoing collective action problem among intentional agents whose choices depend not only on the past but also on their expectations as to how their actions will affect those of others. In this model agents act on the basis of imperfect information. We show that under these conditions the onset of overall cooperation can take place in a sudden and unexpected way. Likewise, defection can appear out of nowhere in very large, previously cooperating groups. These outbreaks mark the end of long transient states in which defection or cooperation persists in groups that cannot sustain it indefinitely. [ABSTRACT FROM AUTHOR]