IDEAS home Printed from https://ideas.repec.org/p/red/sed010/57.html
   My bibliography  Save this paper

Aspiration, Sympathy and Minmax Outcome

Author

Listed:
  • Akihiko Matsui

    (University of Tokyo)

  • In-Koo Cho

    (University of Illinois)

Abstract

We focus on the outcomes sustained by the decision rule consistent with the satisficing behavior a la Simon [1987], slightly perturbed to incorporate sympathy in the spirit of Hume [1978]. For a general class of two person games, as the probability of continuing the long term relationship converges to 1, all agents in the economy almost always play the most egalitarian outcome among Pareto efficient outcome, which is the efficient Rawlsian outcome. The Rawlsian criterion is generated through repeated long term interactions among agents in a decentralized fashion.

Suggested Citation

  • Akihiko Matsui & In-Koo Cho, 2010. "Aspiration, Sympathy and Minmax Outcome," 2010 Meeting Papers 57, Society for Economic Dynamics.
  • Handle: RePEc:red:sed010:57
    as

    Download full text from publisher

    File URL: https://red-files-public.s3.amazonaws.com/meetpapers/2010/paper_57.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karandikar, Rajeeva & Mookherjee, Dilip & Ray, Debraj & Vega-Redondo, Fernando, 1998. "Evolving Aspirations and Cooperation," Journal of Economic Theory, Elsevier, vol. 80(2), pages 292-331, June.
    2. Rubinstein, Ariel, 1993. "On Price Recognition and Computational Complexity in a Monopolistic Model," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 473-484, June.
    3. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    4. Parikshit Ghosh & Debraj Ray, 1996. "Cooperation in Community Interaction Without Information Flows," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(3), pages 491-519.
    5. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2009. "Voluntarily Separable Repeated Prisoner's Dilemma," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 993-1021.
    6. Cho, In-Koo & Matsui, Akihiko, 2005. "Learning aspiration in repeated games," Journal of Economic Theory, Elsevier, vol. 124(2), pages 171-201, October.
    7. Michihiro Kandori, 1992. "Social Norms and Community Enforcement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(1), pages 63-80.
    8. Bendor Jonathan & Mookherjee Dilip & Ray Debraj, 2001. "Reinforcement Learning in Repeated Interaction Games," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 1(1), pages 1-44, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akihiko Matsui & In-Koo Cho, 2008. "Matching, Repeated Game and Aspiration," 2008 Meeting Papers 75, Society for Economic Dynamics.
    2. In-Koo Cho & Akihiko Matsui, 2012. "A Dynamic Foundation of the Rawlsian Maxmin Criterion," Dynamic Games and Applications, Springer, vol. 2(1), pages 51-70, March.
    3. Filip Vesely & Chun-Lei Yang, 2013. "On Optimal Social Convention in Voluntary Continuation Prisoner's Dilemma Games," CESifo Working Paper Series 4553, CESifo.
    4. Fujiwara-Greve, Takako & Okuno-Fujiwara, Masahiro & Suzuki, Nobue, 2012. "Voluntarily separable repeated Prisonerʼs Dilemma with reference letters," Games and Economic Behavior, Elsevier, vol. 74(2), pages 504-516.
    5. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara & Nobue Suzuki, 2015. "Efficiency may improve when defectors exist," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 423-460, November.
    6. Cui Zhiwei & Zhai Jian & Liu Xuan, 2009. "The Efficiency of Observability and Mutual Linkage," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 9(1), pages 1-36, July.
    7. Bester, Helmut & Sákovics, József, 2024. "Cooperation, competition, and welfare in a matching market," Games and Economic Behavior, Elsevier, vol. 143(C), pages 357-369.
    8. Yuval Heller & Erik Mohlin, 2018. "Observations on Cooperation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(4), pages 2253-2282.
    9. Pin, Paolo & Rogers, Brian W., 2015. "Cooperation, punishment and immigration," Journal of Economic Theory, Elsevier, vol. 160(C), pages 72-101.
    10. Yu Awaya & Hiroki Fukai & Makoto Watanabe, 2017. "A Model of Collateral," Tinbergen Institute Discussion Papers 17-098/VII, Tinbergen Institute.
    11. Tom Potoms & Tom Truyts, 2020. "Unhappy is the land without symbols - Group symbols in infinitely repeated public good games," Working Paper Series 1720, Department of Economics, University of Sussex Business School.
    12. Guney, Begum & Richter, Michael, 2015. "An experiment on aspiration-based choice," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 512-526.
    13. H Peyton Young, 2014. "The Evolution of Social Norms," Economics Series Working Papers 726, University of Oxford, Department of Economics.
    14. Bramoullé, Yann & Goyal, Sanjeev, 2016. "Favoritism," Journal of Development Economics, Elsevier, vol. 122(C), pages 16-27.
    15. Schumacher, Heiner, 2013. "Imitating cooperation and the formation of long-term relationships," Journal of Economic Theory, Elsevier, vol. 148(1), pages 409-417.
    16. Costel Andonie & Daniel Diermeier, 2022. "Electoral Institutions with impressionable voters," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(3), pages 683-733, October.
    17. Defever, Fabrice & Fischer, Christian & Suedekum, Jens, 2016. "Relational contracts and supplier turnover in the global economy," Journal of International Economics, Elsevier, vol. 103(C), pages 147-165.
    18. W. Bentley MacLeod, 2006. "Reputations, Relationships and the Enforcement of Incomplete Contracts," CESifo Working Paper Series 1730, CESifo.
    19. Mengel, Friederike, 2014. "Learning by (limited) forward looking players," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 59-77.
    20. Xie, Huan & Lee, Yong-Ju, 2012. "Social norms and trust among strangers," Games and Economic Behavior, Elsevier, vol. 76(2), pages 548-555.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:sed010:57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.