Group identity and cooperation in infinitely repeated games

Abstract We develop a theoretical framework and conduct a laboratory experiment to study how group identity affects cooperative behavior and strategy selection in infinitely repeated prisoner’s dilemma (IRPD) games. We find that participants are more likely to cooperate and less likely to adopt the Always Defect strategy with ingroup members than with outgroup members or participants in the control condition. Ingroup pairs are also more likely to sustain cooperation but less likely to persist in defection over the dynamic course across supergames, compared to both outgroup and control pairs. However, these effects are statistically significant only in the low strategic risk environment when the discount factor is high enough for cooperation to be both a subgame perfect Nash equilibrium and risk dominant. In the high strategic risk environment where cooperation is a subgame perfect Nash equilibrium but not risk dominant, the impact of group identity on cooperation is less robust and only holds qualitatively.

Authors

Publication Details

Journal
Economic Theory
Published
2026-01-21
DOI
https://doi.org/10.1007/s00199-025-01699-5
Citations
1
Primary Topic
Evolutionary Game Theory and Cooperation
Type
article
Field-Weighted Citation Impact
55.57
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Group identity and cooperation in infinitely repeated games

Sherry Xin Li, Bo Chen, Tracy Xiao Liu
1 citations
Economic Theory
Evolutionary Game Theory and Cooperation
55.57
article

Group identity and cooperation in infinitely repeated games

Sherry Xin Li, Bo Chen, Tracy Xiao Liu
article en
1 citations

Abstract

Abstract We develop a theoretical framework and conduct a laboratory experiment to study how group identity affects cooperative behavior and strategy selection in infinitely repeated prisoner’s dilemma (IRPD) games. We find that participants are more likely to cooperate and less likely to adopt the Always Defect strategy with ingroup members than with outgroup members or participants in the control condition. Ingroup pairs are also more likely to sustain cooperation but less likely to persist in defection over the dynamic course across supergames, compared to both outgroup and control pairs. However, these effects are statistically significant only in the low strategic risk environment when the discount factor is high enough for cooperation to be both a subgame perfect Nash equilibrium and risk dominant. In the high strategic risk environment where cooperation is a subgame perfect Nash equilibrium but not risk dominant, the impact of group identity on cooperation is less robust and only holds qualitatively.

Economic Theory
Partnerships for the goals
Openalex Percentile: Top 1%
Evolutionary Game Theory and Cooperation
55.57
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.