Investigating the factors affecting cooperating: a collaborative view of game theory

Human relationships are very essential in the real world since humans interact with each other every day. However, the study of human relationships in the field of behavioral economics lacks a game theory approach. This paper presents an insider’s view of how the closeness of people’s relationships to their investment partners would influence their willingness to collaborate in an investor’s game we self-designed. The results show that people who know their partner collaborate more than people who are close to or don’t know their partner because they are not worried about future interactions. Further implications of this finding could involve seeking out individuals who are familiar with each other to avoid reaching Nash equilibrium and achieve the optimal outcome.