Dynamic group formation in the repeated prisonerʼs dilemma

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 74
Issue: 1
Pages: 269-284

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider dynamic group formation in repeated n-person prisonerʼs dilemma. Agreements in coalitional bargaining are self-binding in that they are supported as subgame perfect equilibria of repeated games. Individuals are allowed to renegotiate the cooperating group agreement through a process of voluntary participation. We prove that a cooperating group forms as an absorbing state of a Markov perfect equilibrium after a finite number of renegotiations if and only if the group is Pareto efficient, provided that individuals are patient. The cooperating group can only expand.

Technical Details

RePEc Handle
repec:eee:gamebe:v:74:y:2012:i:1:p:269-284
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25