Gradualism and Spillover Across Time Environments

This study investigates the impact of gradualism and behavior spillover between discrete time and continuous time environments with two representative games, the Prisoner’s Dilemma (PD) and the Battle of the Sexes (BoS). Laboratory subjects are exposed to variations of time environments by the frequency of interactions, transitioning either from a fast to slow pace or vice versa. The data reveals a spillover effect between time environments. Specifically, in the context of the PD games, exposure to continuous-time dynamics enhances cooperation in subsequent discrete time interactions. In the BoS games, the alternating dynamic patterns of the preceding time environment significantly influence the subsequent time environment. Notably, a positive spillover is observed from discrete time to continuous time, while a negative spillover is evident in the reverse scenario.

Keywords: Gradualism, Behavior spillover, Continuous time, Discrete time, Prisoner’s Dilemma, Battle of the Sexes.

JEL Classification: C72, C73, C92