The isomorphism hypothesis: The prisoner's dilemma as intertemporal allocation, and vice versa

• Published in: Journal of economic behavior & organization 2020-08, Vol.176, p.735-746
• Main Author: Khalil, Elias L.
• Format: Article
• Language: English
• Subjects: Altruism; Care; Cooperation; Defection; Grant (charity); Nash equilibrium
• ISSN: 0167-2681; 1879-1751
• DOI: 10.1016/j.jebo.2018.10.020

•Finitely repeated prisoners’ dilemma (PD) is similar to intertemporal allocation.•The current and future selves face strategies similar to the strategies facing players in PD.•The fact that the current and future selves share the same biological body is irrelevant.•If one accepts cooperation in intertemporal allocation, it behooves one to accept cooperation in PD.•If one accepts defection in PD, it behooves one to accept defection in intertemporal allocation. Economists model the choice of the current self in intertemporal allocation as the outcome of identity: the current and future selves belong to the same decision maker by the sheer fact they reside in the same “biological skin” defined by biological identity. The economists should be consistent and likewise model the choice of each player in the prisoner's dilemma or, generally, the social dilemma as the outcome of identity: the selves of the players belong to the same decision maker by the sheer fact they reside in the same “social skin” defined by social identity. If the economists consider cooperation rather than defection to be the rational strategy of the current self in intertemporal allocations, they should be consistent and consider cooperation rather than defection to be the rational strategy of each player in social dilemmas. Symmetrically, if the economists judge defection rather than cooperation to be the rational strategy in social dilemmas, it behooves them to also judge defection rather than cooperation to be the rational strategy in intertemporal allocations.