We study the coexistence of strategies in the indirect reciprocity game where agents have access to second-order information. We fully characterize the evolutionary stable equilibria and analyze their comparative statics with respect to the cost-benefit ratio (CBR). There are indeed only two...

The article suggests a new explanation for cooperation in large, unstructured societies that avoids the restrictions required in most previous attempts. Our explanation deals with the role of internalized norms. Even internalized norms, i.e. norms that alter the perceived utility from acting in...

We study the coexistence of strategies in the indirect reciprocity game where agents have access to second-order information. We fully characterize the evolutionary stable equilibria and analyze their comparative statics with respect to the cost-benefit ratio (CBR). There are indeed only two...