1 Department of Economics and Business Economics, Aarhus BSS, Aarhus University2 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
We study the infinitely repeated prisoner’s dilemma with the option to maintain or to quit relationships. We show that if agents imitate successful strategies infrequently, defection is not dynamically stable and cooperation emerges regardless of the initial distribution of strategies.
Journal of Economic Theory, 2013, Vol 148, Issue 1, p. 407-417
Prisoner’s dilemma; Imitation; Random matching; Relationships