Replication data for: Partners or Strangers? Cooperation, Monetary Trade, and the Choice of Scale of Interaction
- Bigoni, Maria
- Camera, Gabriele
- Casari, Marco
AbstractWe show that monetary exchange facilitates the transition from small to large-scale economic interactions. In an experiment, subjects chose to play an "intertemporal cooperation game" either in partnerships or in groups of strangers where payoffs could be higher. Theoretically, a norm of mutual support is sufficient to maximize efficiency through large-scale cooperation. Empirically, absent a monetary system, participants were reluctant to interact on a large scale; and when they did, efficiency plummeted compared to partnerships because cooperation collapsed. This failure was reversed only when a stable monetary system endogenously emerged: the institution of money mitigated strategic uncertainty problems.
Is supplement to
DOI: 10.1257/mic.20170280 (Text)
Bigoni, Maria, Gabriele Camera, and Marco Casari. “Partners or Strangers? Cooperation, Monetary Trade, and the Choice of Scale of Interaction.” American Economic Journal: Microeconomics 11, no. 2 (May 2019): 195–227. https://doi.org/10.1257/mic.20170280.
- ID: 10.1257/mic.20170280 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13