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Inducing cooperation by reciprocative strategy in non-zero-sum games
Authors:PP Shenoy  PL Yu
Institution:School of Business, The University of Kansas, Lawrence, Kansas 66045 U.S.A.
Abstract:In this paper, we investigate the use of reciprocative strategy to induce cooperative behavior in non-zero-sum games. Reciprocative behavior is defined mathematically in the context of a two-person non-zero-sum game in which both the players have a common set of pure strategies. Conditions under which mutual cooperative behavior results when one of the players responds optimally to reciprocative behavior by the other player are described. Also, the desirability of playing the reciprocative strategy is investigated by stating conditions under which reciprocative strategy by one of the players or by both the players leading to mutual cooperative behavior is a Nash equilibrium outcome.
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