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Reciprocity, Materialism and Welfare: An Evolutionary Model

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  • Poulsen, A.

Abstract

This paper analyses preference evolution in a bargaining situation. We show that preferences for reciprocity, that sustain a con ict-free outcome, are viable if players have enough information about opponents' preferences. However, de-pending on the initial starting point, preference evolution can in general both enhance or reduce subjective and material welfare, relative to the situation where all players have the usual materialistic preferences.

Suggested Citation

  • Poulsen, A., 2001. "Reciprocity, Materialism and Welfare: An Evolutionary Model," Papers 01-3, Aarhus School of Business - Department of Economics.
    • Handle: RePEc:fth:aascbu:01-3
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    as
    1. Hoffman, Elizabeth & McCabe, Kevin A & Smith, Vernon L, 1998. "Behavioral Foundations of Reciprocity: Experimental Economics and Evolutionary Psychology," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 335-352, July.
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    12. Guth, Werner, 1995. "An Evolutionary Approach to Explaining Cooperative Behavior by Reciprocal Incentives," International Journal of Game Theory, Springer;Game Theory Society, vol. 24(4), pages 323-344.
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    16. Fehr, Ernst & Gachter, Simon, 1998. "Reciprocity and economics: The economic implications of Homo Reciprocans1," European Economic Review, Elsevier, vol. 42(3-5), pages 845-859, May.
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    18. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
    19. Guttman, Joel M., 2000. "On the evolutionary stability of preferences for reciprocity," European Journal of Political Economy, Elsevier, vol. 16(1), pages 31-50, March.
    20. Huck, Steffen, 1998. "Trust, Treason, and Trials: An Example of How the Evolution of Preferences Can Be Driven by Legal Institutions," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 14(1), pages 44-60, April.
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    More about this item

    Keywords

    ALTRUISM ; EFFICIENCY ; SOCIAL WELFARE;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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