Cooperation in an Uncertain World :

An Experimental Study

Abstract

     The purpose of this study is to investigate how cooperation might emerge given the following circumstances: the presence of social dilemmas (in which individually rational behavior leads to collectively irrational outcomes), the absence of perfect information, and the possibility of degrees of cooperation. This investigation includes an analysis of accounting systems in exchange relations and argues for the benefits of a relaxed accounting system under the conditions enumerated above. The problem is examined in an experimental study in which subjects interacted with a variety of simulated actors. The highest levels of cooperation and the greatest earnings resulted when subjects interacted with simulated actors using a strategy that involved some form of relaxed accounting system. In addition, simulated actors using a relaxed accounting system did as well or better for themselves than simulated actors using more restrictive strategies.