Article ID Journal Published Year Pages File Type
5072289 Games and Economic Behavior 2011 8 Pages PDF
Abstract
Cooperating in the Prisonerʼs Dilemma is irrational and some supporting mechanism is needed to stabilize cooperation. Indirect reciprocity based on reputation is one such mechanism. Assessing an individualʼs reputation requires first-order information, i.e. knowledge about its previous behavior, as it is utilized under image scoring. But there seems to be an agreement that in order to successfully stabilize cooperation, higher-order information is necessary, i.e. knowledge of othersʼ previous reputations. We show here that such a conclusion might have been premature. Tolerant scoring, a first-order assessment rule with built-in tolerance against single defections, can lead a society to stable cooperation.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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