Abstract
We design a laboratory experiment to test whether intergenerational altruism can sustain cooperation in a one-shot Prisoner’s Dilemma embedded in an overlapping generations (OLG) structure. In each generation, two players from rival “families” play a Prisoner’s Dilemma; each player’s payoff depends on both their own earnings and those of their successor in the next generation, weighted by an altruism parameter α. A sharp theoretical prediction emerges: mutual cooperation is a subgame perfect equilibrium if and only if α exceeds a threshold determined by the game’s payoffs. We implement a 3×3 factorial design crossing three communication protocols—no communication, partner communication, and parent-child plus partner communication—with three altruism levels (α ∈ {0.4, 1.0, 1.6}) spanning the sub-threshold, boundary, and
supra-threshold regimes. Our design bridges the infinitely repeated games literature (Dal Bó, 2005; Dal Bó and Fréchette, 2018) and the OLG tradition (Samuelson, 1958), offering the first experimental test of cooperation sustained not by the “shadow of the future” but by the “shadow of posterity.”