The Infinitely Repeated Volunteer's Dilemma : An Experimental Study

We examine how repeated interaction can facilitate coordinated turn-taking in a two-player infinitely repeated Volunteer's Dilemma. We conjecture that repetition creates an environment for players to coordinate on the Pareto efficient, but asymmetric pure strategy Nash equilibria of the stage game by taking turns volunteering. We consider three cost treatments: both players have the same cost; one player has a higher cost and this cost assignment is fixed; one player has a higher cost and this cost assignment is random. We find that turn-taking is the dominant play when costs are symmetric. When costs are asymmetric, the low-cost player is more likely to volunteer. However, contrary to predictions, asymmetric randomly allocated costs do not perfectly coordinate turn-taking. When costs are asymmetric and fixed over time, behavior is markedly heterogeneous. We contribute to the infinitely repeated games literature by analyzing behavior that is different from the usual punishment and reward schemes