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Notes
- 1.
This is if profits from cooperation are larger than the profits from cheating in the stage game, that is, \(\pi ^{\hbox{cooperate}}> \pi ^{\hbox{cheat}}\) implies \(\gamma > {\beta}/({N - 1})\).
- 2.
The proposition is obtained by subtracting (3.4) and (3.5) from (3.3) and pulling out the distance parameter d for each.
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Aydogan, N., Lyon, T.P. (2008). Reciprocity, Proximity and Performance of Research Consortia. In: Social Capital and Business Development in High-Technology Clusters. International Studies in Entrepreneurship, vol 18. Springer, New York, NY. https://doi.org/10.1007/978-0-387-71911-5_3
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