We compare a partners condition, where the same small group of subjects pla
ys a repeated public good game, to a strangers condition, where subjects pl
ay this game in changing group formations. From the first period onward, su
bjects in the partners condition contribute significantly more to the publi
c good than subjects in the strangers condition. Strangers' contributions s
how continual decay, while partners' contributions fluctuate on a high leve
l prior to decreasing in the final periods. We interpret subjects' behaviou
r in terms of conditional cooperation which is characterized by both future
-oriented and reactive behaviour.