A prisoners dilemma game is played for a fixed number of periods. The fully rational solution is

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A prisoners’ dilemma game is played for a fixed number of periods. The fully rational solution is for each player to defect in each period. However, in experiments with students, players often cooper-ate for a significant number of periods if the total number of repetitions is fairly large (such as 10 of 20). Why?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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