The name is absent



(*)

Table 1: Comparison of experimental designs

Matching
protocol
(within the
economy)

Anonymity
(identity of
opponent is
unknown)

Designs

Global

Strategy type

Reactive

Targeted

Fixed
matching

NO

Partner-not in this study

(i)

(i)

(i)

Random
matching

No

Public monitoring
(non-anonymous)

Yes

Yes

Yes

Yes

Anonymous public monitoring

Yes

Yes

Yes

Private monitoring

Yes

Yes

Private monitoring with
punishment

High

Yes

Medium

(ii)

Low

power

Not selective

power
Moderately
selective

power
Highly
selective

Table 2: The stage game

(A) Notation in the theoretical analysis

Player 1/
player 2

Y

Z

Y

У, У

Th

Z ~

h, l       '

z, z


(B) Parameterization of the experiment

Player 1/
player 2

Y

Z

Y

25, 25

573ô

Z

3075

10, 10


The stage game. The stage game is a standard prisoners’ dilemma with payoffs
determined according to Table 2 (payoffs to column and row players, respectively).5 We
call action Y
cooperate and action Z defect. So, we say that there is cooperation in the

(*) (i) In partner, the distinction among targeted, reactive, and global strategies is irrelevant because of the
fixed matching. (ii) One could interpret the possibility of personal punishment as a form of targeted
strategy, although the personal punishment reduces the continuation payoffs for the punisher more than
with the reactive strategy. Personal punishment expands the set of strategies. In particular it allows for a
targeted strategy because an agent can punish his opponent after observing the choice of his opponent.

5 We selected this parameterization as it scores high on the indexes proposed by Rapoport and Chammah
(1965), Roth and Murnighan (1978), and Murnighan and Roth (1983) that correlate with the level of
cooperation in the indefinitely repeated prisoners’ dilemma in a partner protocol. Also, in Table 2 we have
0
lzyh and 2zl+h <2y .



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