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Evolution of Mindsight and Psychological Commitment among Strategically Interacting Agents

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  • Dimitry Rtischev

    (Faculty of Economics, Gakushuin University, 1-5-1 Mejiro, Toshima-ku, Tokyo 171-8588, Japan)

Abstract

We study the evolution of strategic psychological capabilities in a population of interacting agents. Specifically, we consider agents which are either blind or with mindsight, and either transparent or opaque. An agent with mindsight can observe the psychological makeup of a transparent agent, i.e., its logic, emotions, commitments and other elements that determine how it chooses actions. A blind agent cannot observe and opaque agents cannot be observed. Our assumption that mindsight and transparency are costly and optional exposes a middle ground between standard game theory without mindsight and evolution of preferences theory with obligatory and costless mindsight. We show that the only evolutionarily stable monomorphic population is one in which all agents are blind, opaque, and act-rational. We find that mindsight, transparency, and rule-rational commitments may evolve, albeit only in a portion of the population that fluctuates in size over generations. We reexamine the Ultimatum and Trust games in light of our findings and demonstrate that an evolved population of agents can differ significantly from a population of simplistic payoff-maximizers in terms of psychological traits and economic outcomes.

Suggested Citation

  • Dimitry Rtischev, 2016. "Evolution of Mindsight and Psychological Commitment among Strategically Interacting Agents," Games, MDPI, vol. 7(3), pages 1-16, September.
    • Handle: RePEc:gam:jgames:v:7:y:2016:i:3:p:27-:d:78525
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    References listed on IDEAS

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    1. Schniter, Eric & Sheremeta, Roman M. & Sznycer, Daniel, 2013. "Building and rebuilding trust with promises and apologies," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 242-256.
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    4. Mohlin, Erik, 2012. "Evolution of theories of mind," Games and Economic Behavior, Elsevier, vol. 75(1), pages 299-318.
    5. Hessel Oosterbeek & Randolph Sloof & Gijs van de Kuilen, 2004. "Cultural Differences in Ultimatum Game Experiments: Evidence from a Meta-Analysis," Experimental Economics, Springer;Economic Science Association, vol. 7(2), pages 171-188, June.
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    7. Robert J. Aumann, 2008. "Rule-Rationality versus Act-Rationality," Discussion Paper Series dp497, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
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    Cited by:

    1. Heller, Yuval & Mohlin, Erik, 2019. "Coevolution of deception and preferences: Darwin and Nash meet Machiavelli," Games and Economic Behavior, Elsevier, vol. 113(C), pages 223-247.

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    More about this item

    Keywords

    theory of mind; mindsight; evolution of preferences; psychological commitment; act-rationality; rule-rationality; ultimatum game; trust game;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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