Loughborough University
Leicestershire, UK
LE11 3TU
+44 (0)1509 263171
Loughborough University

Loughborough University Institutional Repository

Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/24113

Title: Emotions in a repeated cournot duopoly game: A psychophysiological experiment
Authors: Leppanen, Ilkka
Hamalainen, Raimo P.
Keywords: Cooperation
Issue Date: 2017
Publisher: © American Psychological Association
Citation: LEPPANEN, I. and HAMALAINEN, R.P., 2017. Emotions in a repeated cournot duopoly game: A psychophysiological experiment. Journal of Neuroscience, Psychology, and Economics, 10 (1), pp. 9-23.
Abstract: The reason why cooperation occurs in repeated games has remained a puzzle. Earlier literature has maintained that reciprocal behavior that gives rise to cooperation can be entirely self-regarding. However, experimental evidence shows that reciprocal behavior is other-regarding in many one-shot games. This other-regarding behavior is believed to have an emotional foundation. We hypothesized that emotions play a role in reciprocal behavior in repeated games as well. We tested this hypothesis by measuring the psychophysiological correlates of emotions from pairs of subjects as they played a repeated Cournot duopoly game. The players, who were in different rooms and remained anonymous to each other, made adjustment decisions to their production quantities that determined their payoffs in each round. Autonomic nervous system arousal was activated when the payoffs of both players decreased in a round, whereas positive affect was expressed when the payoffs of both players increased in a round. The disgust expression was related to a player's own one-sided increase in the payoff. Anger was expressed occasionally but less frequently when the outcome was the player's ideal outcome. An upwards adjustment of the production quantity was observed when the other player did not cooperate. This had the effect of decreasing the payoffs of both players and this was also related to an increase in the level of arousal. Our results provide evidence on how emotions are present in reciprocal behavior in a repeated social dilemma game. The results challenge recent behavioral research that advocates self-regarded motivations of cooperation in repeated games.
Description: This paper was accepted for publication in the journal Journal of Neuroscience, Psychology, and Economics and the definitive published version is available at http://dx.doi.org/10.1037/npe0000069. This article may not exactly replicate the final version published in the APA journal. It is not the copy of record.
Version: Accepted for publication
DOI: 10.1037/npe0000069
URI: https://dspace.lboro.ac.uk/2134/24113
Publisher Link: http://dx.doi.org/10.1037/npe0000069
ISSN: 2151-318X
Appears in Collections:Published Articles (Business)

Files associated with this item:

File Description SizeFormat
finalversionJNPE.pdfAccepted version443.16 kBAdobe PDFView/Open


SFX Query

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