@misc{HeuerOrland2019, author = {Heuer, Leonie and Orland, Andreas}, title = {Cooperation in the Prisoner's Dilemma}, series = {Postprints der Universit{\"a}t Potsdam Wirtschafts- und Sozialwissenschaftliche Reihe}, journal = {Postprints der Universit{\"a}t Potsdam Wirtschafts- und Sozialwissenschaftliche Reihe}, number = {107}, issn = {1867-5808}, doi = {10.25932/publishup-43592}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-435929}, pages = {9}, year = {2019}, abstract = {Cooperation is — despite not being predicted by game theory — a widely documented aspect of human behaviour in Prisoner's Dilemma (PD) situations. This article presents a comparison between subjects restricted to playing pure strategies and subjects allowed to play mixed strategies in a one-shot symmetric PD laboratory experiment. Subjects interact with 10 other subjects and take their decisions all at once. Because subjects in the mixed-strategy treatment group are allowed to condition their level of cooperation more precisely on their beliefs about their counterparts' level of cooperation, we predicted the cooperation rate in the mixed-strategy treatment group to be higher than in the pure-strategy control group. The results of our experiment reject our prediction: even after controlling for beliefs about the other subjects' level of cooperation, we find that cooperation in the mixed-strategy group is lower than in the pure-strategy group. We also find, however, that subjects in the mixedstrategy group condition their cooperative behaviour more closely on their beliefs than in the pure-strategy group. In the mixed-strategy group, most subjects choose intermediate levels of cooperation.}, language = {en} }