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Stability and Outcome Tradeoffs in Asymmetric Dilemmas: Conditions Promoting the Discovery of Alternating Solutions

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Bounded Rational Behavior in Experimental Games and Markets

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 314))

Abstract

This paper addresses the difficulties of cooperation in asymmetric dilemmas, interactions where two or more parties have mixed motives and receive different known outcomes if they mutually cooperate or mutually noncooperate. This context thus addresses dilemmas in general rather than the unlikely but more often studied symmetric dilemma. Observations from a series of studies indicate that, in dilemmas that provide one party with leverage and the other with potential regret, and which reduce the potential benefits of mutual cooperation for the party with leverage, the parties alternate asymmetrically in receiving valued outcomes. These observations provide the basis for a set of propositions that predict when alternation is most likely and when it is an equilibrium strategy.

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© 1988 Springer-Verlag Berlin Heidelberg

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King, T.R., Murnighan, J.K. (1988). Stability and Outcome Tradeoffs in Asymmetric Dilemmas: Conditions Promoting the Discovery of Alternating Solutions. In: Tietz, R., Albers, W., Selten, R. (eds) Bounded Rational Behavior in Experimental Games and Markets. Lecture Notes in Economics and Mathematical Systems, vol 314. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-48356-1_7

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  • DOI: https://doi.org/10.1007/978-3-642-48356-1_7

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-50036-0

  • Online ISBN: 978-3-642-48356-1

  • eBook Packages: Springer Book Archive

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