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The Persistence of Goodness

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  • Ashok S. Guha
  • Brishti Guha

Abstract

Experimental evidence and economic examples like Basu's (1984) taxi-driver problem illustrate that many people are honest (or good) even when beyond the reach of the law, and without repeated interactions or reputation effects. We provide game-theoretic underpinnings of the level of goodness in a population. For appropriate parameter ranges, a certain level of good behaviour will emerge as an evolutionarily stable equilibrium: virtue will not be driven out of the population, even in a Darwinian world of the survival of the fittest. The long-run equilibrium proportion of good behaviour is independent of the level of intrinsic goodness.

Suggested Citation

  • Ashok S. Guha & Brishti Guha, 2012. "The Persistence of Goodness," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(3), pages 432-443, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201209)168:3_432:tpog_2.0.tx_2-s
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    References listed on IDEAS

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    1. Larry Samuelson, 2002. "Evolution and Game Theory," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 47-66, Spring.
    2. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
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    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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