Learning to cooperate in the shadow of the law

Abstract : How does the exposure to past institutions affect current cooperation? While a growing literature focuses on behavioral channels, we show how cooperation-enforcing institutions affect rational learning about the group's value. Strong institutions, by inducing members to cooperate , may hinder learning about intrinsic values in the group. We show, using a lab experiment with independent interactions and random rematching, that participants behave in accordance with a learning model, and in particular react differently to actions of past partners whether they were played in an environment with coercive enforcement or not.
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Submitted on : Monday, June 3, 2019 - 9:05:18 AM
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Roberto Galbiati, Emeric Henry, Nicolas Jacquemet. Learning to cooperate in the shadow of the law. 2019. ⟨halshs-02145486⟩

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