Games 2012, 3(1), 56-77; doi:10.3390/g3010056
Article

Patience or Fairness? Analyzing Social Preferences in Repeated Games

1 Department of Economics, University of Pittsburgh, Pittsburgh, PA 15260, USA 2 School of Economic Sciences, Washington State University, Pullman, WA 99164, USA
* Author to whom correspondence should be addressed.
Received: 9 January 2012; Accepted: 16 March 2012 / Published: 21 March 2012
(This article belongs to the Special Issue Fairness in Games)
PDF Full-text Download PDF Full-Text [459 KB, uploaded 21 March 2012 17:02 CET]
Abstract: This paper investigates how the introduction of social preferences affects players’ equilibrium behavior in both the one-shot and the infinitely repeated version of the Prisoner’s Dilemma game. We show that fairness concerns operate as a ”substitute” for time discounting in the infinitely repeated game, as fairness helps sustain cooperation for lower discount factors. In addition, such cooperation can be supported under larger parameter values if players are informed about each others’ social preferences than if they are uninformed. Finally, our results help to identify conditions under which cooperative behavior observed in recent experimental repeated games can be rationalized using time preferences alone (patience) or a combination of time and social preferences (fairness).
Keywords: prisoner’s dilemma; repeated games; inequity aversion; time discounting, social preferences

Article Statistics

Load and display the download statistics.

Citations to this Article

Cite This Article

MDPI and ACS Style

Duffy, J.; Muñoz-García, F. Patience or Fairness? Analyzing Social Preferences in Repeated Games. Games 2012, 3, 56-77.

AMA Style

Duffy J, Muñoz-García F. Patience or Fairness? Analyzing Social Preferences in Repeated Games. Games. 2012; 3(1):56-77.

Chicago/Turabian Style

Duffy, John; Muñoz-García, Félix. 2012. "Patience or Fairness? Analyzing Social Preferences in Repeated Games." Games 3, no. 1: 56-77.

Games EISSN 2073-4336 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert