Reputation alone can sustain cooperation where direct reciprocity is impossible.

Evidence

For the indirect reciprocity game'20, each person was assigned repeatedly as either a potential donor or a potential receiver. For example, a potential donor, say Telesto’, was asked on the public screen whether he would give to Galatea'. Telesto would loose DM 2.50 from his account and Galatea would gain DM 4 on her account if Telesto decided yes’. Telesto’s decision (yes or no) was displayed for 2 s on the public screen. Everybody knew about the contributions of all players, for example, whether Galatea had given in previous rounds when he/she had been playing as the potential donor. The subjects also knew that there would be no direct reciprocity; if Awas the potential donor of B, B would never be the potential donor of A. — Hans-Jürge, Reputation helps solve the `tragedy of…, 31

Categorization

  • XREF: Directly parallels the reader’s reading purpose: how social control in Wharton’s 1870s New York operates through total visibility and audience effects rather than direct enforcement — reputation as capital (Milinski, Zucker). — connects to: Cooperation collapses once the threat of reputation-based punishment is removed. — Hans-Jürge, Reputation helps solve the tragedy of…, 19</cite>; Withholding help naturally damages reputation without any formal punishment rule. — <cite>Hans-Jürge, Reputation helps solve the tragedy of…, 28; Cooperation can operate independently of trust (+9 more)
  • DEFINE: Operationally defines ‘indirect reciprocity’ as cooperation rewarded by observers’ evaluations rather than by the direct beneficiary.

Broader Connections