The sequential prisoner's dilemma: Evidence on reciprocation

we investigate how fairness concerns influence individual behaviour in soci al dilemmas. Using a Sequential Prisoner's Dilemma experiment we analyse th e extent to which co-operation is conditional on first-mover co-operation, repetition, economic incentives, subject pool (United Kingdom vs. United St ates) and gender. We find the most important variable influencing cooperati on is the first-mover's choice, supporting the argument that co-operative b ehaviour in social dilemmas reflects reciprocation rather than unconditiona l altruism. However, we also find that cooperation decreases with repetitio n, and reciprocation falls as its material cost rises.