causal

Seeing Foregone Options Doubles Cooperation

In a controlled comparison, when the second mover can see that the first mover voluntarily gave up an outside option, cooperation is twice as high as defection; but when the first mover had no choice (no outside option to forgo), defection becomes twice as high as cooperation -- demonstrating that the ability to read intention drives reciprocal cooperation.

causalpending

Speaker

Vernon Smith

Evidence Quote

if two doesn't see what one gave up because they gave up nothing--they had to do what they did--then there is far more defection... in the game where I see what you gave up and I can read meaning into your action, the cooperation is twice as high as the defection.

Source

Vernon Smith on Adam Smith and the Human EnterpriseEconTalk
Created: 6/13/2026, 12:22:45 AM

My Notes

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