Repeated Interaction and Its Impact on Cooperation and Surplus Allocation—An Experimental Analysis

This paper investigates how the possibility of affecting group composition combined with repeated interaction impacts cooperation within groups and surplus distribution. We developed tested experimentally a Surplus Allocation Game where four agents is needed to produce surplus, but only two have power allocate it among members. Three matching procedures (corresponding three separate experimental treatments) were used test impact variables interest. A total 400 subjects participated in our research, which was computer-based conducted laboratory. Our results show that allowing for same partners leads self-selection into different life spans, whose duration correlated behavior both distributors receivers. While at level diverse allocation amount cooperation, aggregate instead similar when allowed or not allowed. behavioral model captures dynamics observed data sheds light rationales drive agents’ individual behavior, suggesting most generous are those acting fear rejection, true generosity, while lasting longest composed by this type “undemanding”