Reputation Effects in Social Networks Do Not Promote Cooperation: An Experimental Test of the Raub & Weesie Model.

Despite the popularity of the notion that social cohesion in the form of dense social networks promotes cooperation in Prisoner's Dilemmas through reputation, very little experimental evidence for this claim exists. We address this issue by testing hypotheses from one of the few rigorous game-theoretic models on this topic, the Raub & Weesie model, in two incentivized lab experiments. In the experiments, 156 subjects played repeated two-person PDs in groups of six.

Economic principles in communication: an experimental study.

This paper experimentally investigates how economic principles affect communication. In a simple sender-receiver game with common interests over payoffs, the sender can send a signal without a pre-given meaning in an infrequent or frequent state of the world. When the signal is costly, several theories (focal point theory, the intuitive criterion, evolutionary game theory) predict an efficient separating equilibrium, where the signal is sent in the infrequent state of the world (also referred to as Horn׳s rule).