Can the shadow of the future harm cooperation?

• Published in: Journal of economic behavior & organization Vol. 29; no. 3; pp. 355 - 372
• Main Authors: Skaperdas, Stergios, Syropoulos, Constantinos
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.05.1996; Elsevier; North-Holland Pub. Co; Elsevier Sequoia S.A
• Series: Journal of Economic Behavior & Organization
• Subjects: Appropriation; Conflict; Cooperation; Economic conditions; Economic cooperation; Economic models; Economic theory; Growth rate; Studies; Time dependence; Valuation; D30; Time dependence; Appropriation; Conflict; K42; D70; C72

It is generally thought that in long-term relationships high valuations of the future are conducive to cooperation. In an intertemporal model of conflict, however, we demonstrate the possibility of the opposite effect: a longer shadow of the future may harm cooperation. In particular, we show that t...