RSS - Andreas Lange - "Adversity is a School of Wisdom: Experimental Evidence on Cooperative Protection Against Stochastic Disasters"
Andreas Lange of University of Hamburg will be the speaker for this seminar.
Andreas will be discussing his paper “Adversity is a school of wisdom: Experimental evidence on cooperative protection against stochastic disasters” which he wrote along with co-authors Sonja Köke and Andreas Nicklisch.
Abstract of paper
In this paper, we experimentally investigate voluntary cooperation and its evolution over time on actions which either reduce the size or the probability of a negative stochastic shock. For variants of a repeated four-person prisoner’s dilemma game, we show that cooperation is higher when it affects the probability rather than the size of a damage. The former also leads to more stable cooperation over time, while cooperation declines in the latter. Our paper provides crucial insights on behavioral adaptation following adverse events: cooperation of players is reinforced when the damage does not occur, while defecting players are more likely to switch to cooperation after experiencing an adverse event.