Cooperation and fairness: the flood-Dresher experiment revisited

• Published in: Review of social economy Vol. 61; no. 2; pp. 183 - 210
• Main Author: De Herdt, Tom
• Format: Journal Article
• Language: English
• Published: Routledge 01-06-2003; Routledge Journals; Taylor and Francis Journals
• Series: Review of Social Economy
• Subjects: Analysis; Cooperation; Decision making; Economic theory; Equality; Fairness; Focal points; Free riding; Game theory; Games; Games theory; Justice; Prisoner's dilemma; Prisoners; Prisoners' dilemma; Rational choice theory; rules of conduct; Self interest; Stock markets; Tit for tat
• ISSN: 0034-6764; 1470-1162
• DOI: 10.1080/0034676032000098219

In this paper we set out to deepen our understanding of the importance of fairness in decision-making within the context of Prisoners' Dilemma games. A review of the "historic" Flood-Dresher experiment provides a useful empirical basis, as it allows us to look in considerable detail at how the experimental players made up their minds. We try out several game-theoretical readings of the experimental results, and find some value in Adam Smith's age-old concept of rules of conduct. We find that fairness considerations are much more than mere excuses for taking a free ride or pointers to focal points. They seem to play a considerable role both at a conscious and at a less-than-conscious level.