On the Nature of Conditional Cooperation [Paper Link]
Abstract: In this paper, we experimentally study conditional cooperation, an instance of reciprocity that frequently arises in social dilemmas. We aim to better understand the nature of conditional cooperation and in turn the nature of reciprocity, given that existing models of reciprocity fail to explain some of the empirical regularities. Using sequential prisoner’s dilemma games, we systematically examine how distinct payoff components influence conditional cooperation. In particular, our design manipulates first-mover payoffs and second-mover payoffs separately, an aspect that has not been explored in previous studies. We find that both payoff dimensions shape second-mover decisions in different ways. Our results highlight the need for richer theoretical frameworks of reciprocity than those currently used.