Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75691
Authors: 
Dixit, Avinash
Year of Publication: 
2001
Series/Report no.: 
CESifo Working Paper 589
Abstract: 
I consider transactions involving asymmetric prisoners' dilemmas between pairs of players selected chosen from two large populations. Games are played repeatedly, but information about cheating is not adequate to sustain cooperation, and there is no official legal system of contract enforcement. I examine how profit-maximizing private intermediation can supply the information and enforcement. I obtain conditions under which private governance can improve upon no governance, and examine why it fails to achieve social optimality.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.