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- Zenda: a Prisoners' Dilemma Game
- for the NeXT Computer
-
- a. This application was written by Hal Varian, with some assistance from
- Joseph Klein.
- The address for Hal Varian is given at the end of the file.
-
- b. Economics
-
- c. Zenda is an implementation of a Prisoners' Dilemma game for a network
- of NeXT computers.
-
- d. Zenda has been used for research to illustrate a way that "contracts"
- can be used to induce cooperation in class Prisoners' Dilemma games.
- It may also be useful in the classroom.
-
- e. Zenda was developed under NeXTstep 2.1, but it should also run on 3.0.
-
- f. The file Referee.rtf tells how to install Zenda.
- The file Player.rtf should be given to the players as instructions.
-
- The first stage of Zenda is a classic Prisoners' Dilemma.
- Human subjects do pretty much as the theory predicts---after 6 or 7
- rounds most people play the "defect" strategy.
-
- The twist on the classic Prisoners' Dilemma comes in the second stage of
- Zenda, where I offer the "pay for play" option. The subgame perfect
- equilibrium of this two-stage game is the efficient outcome.
- This has been confirmed in my experiments in the laboratory.
-
- The second stage of Zenda is a variation on the "compensation mechanism".
- This is a general mechanism to solve many kinds of externalities problems.
- It is described in my paper, "A Solution to the Problem of Externalities when
- Agents are Well-Informed."
-
- I found that if I run more than 8 subjects at a time, the network performance
- deteriorates significantly. I intend to rewrite the code when I move to
- distributed objects in NeXTstep 3.0 to see if this improves performance.
-
- The file DataAnalysis.ma uses some Mathematica routines to analyze the data
- generated by Zenda.
-
- If you use this code for something interesting, let me know about it.
- ---
- Hal.Varian@umich.edu Hal Varian
- voice: 313-764-2364 Dept of Economics
- fax: 313-764-2364 Univ of Michigan
- Ann Arbor, MI 48109-1220