Dynamic favor exchange games reveal surprising impact on cooperation levels
This article explores how cooperation and efficiency are influenced by different factors in strategic interactions. The researchers conducted experiments to study favor exchange games, communication in Cournot duopolies, and public good games with varying message spaces. They found that in favor exchange games, people don't keep exact track of favors and are influenced by the time since the last favor. In Cournot duopolies, real-time revision leads to more competitive choices, while Poisson revision results in lower quantities. In public good games, unrestricted text chat leads to higher payoffs and public good provision.