The likelihood of a cooperative outcome in a repeated prisoners' dilemma type game increases when:
A)interactions between the players are frequent.
B)the players are impatient.
C)cheating is not detectable.
D)there is a large gain from cheating.

Question

Quizplus · Accepted Answer

Interactions between players that occur frequently give them the opportunity to develop a reputation for cooperating, which increases the likelihood of cooperative outcomes in repeated prisoners' dilemma type games. Frequent interactions between players increase the likelihood of a cooperative outcome because it allows for the development of trust and reputation. Players are more likely to cooperate if they know they will interact with each other multiple times in the future and that their actions will have consequences. Impatience, undetectable cheating, and large gains from cheating all decrease the likelihood of cooperation.

The Likelihood of a Cooperative Outcome in a Repeated Prisoners