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Mutually altruistic trends in resources allocation

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  • Vadasz, Peter

Abstract

Solutions to a series of apparent paradoxes arising in problems dealing with resources allocation under mutually altruistic conditions are presented. In particular, Bergstrom's lovers’ dilemma (J. Econ. Perspect. 3 (1989) 165) is dealt with as an explicit example of such apparent paradoxes. Bergstrom's discovery of a transition point in utility functions that express altruistic relationships is shown to apply generally to any non-indifferent relationship (and not necessarily altruistic) between consumers, and to general utility functions.

Suggested Citation

  • Vadasz, Peter, 2005. "Mutually altruistic trends in resources allocation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 347(C), pages 653-672.
    • Handle: RePEc:eee:phsmap:v:347:y:2005:i:c:p:653-672
    DOI: 10.1016/j.physa.2004.09.015
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    References listed on IDEAS

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    1. Kimball, Miles S., 1987. "Making sense of two-sided altruism," Journal of Monetary Economics, Elsevier, vol. 20(2), pages 301-326, September.
    2. Bernheim, B Douglas & Stark, Oded, 1988. "Altruism within the Family Reconsidered: Do Nice Guys Finish Last?," American Economic Review, American Economic Association, vol. 78(5), pages 1034-1045, December.
    3. Bergstrom, Ted, 1989. "Love and Spaghetti, the Opportunity Cost of Virtue," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 165-173, Spring.
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