#3071. Do upfront investments increase cooperation? A laboratory experiment

November 2026publication date
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Journal’s subject area:
Finance;
Economics and Econometrics;
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Abstract:
The article explores whether decentralized upfront investment increases cooperation in an environment where there is no enforcement mechanism and cooperation is not easy to maintain on a voluntary basis. The results show that the introduction of investment opportunities increases the overall level of cooperation.
Keywords:
Cooperation; Experiment; Prisoners’ Dilemma; Upfront investments

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