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Reciprocity, Materialism and Welfare: An Evolutionary Model

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This paper analyses preference evolution in a bargaining situation. We show that preferences for reciprocity, that sustain a conflict-free outcome, are viable if players have enough information about opponents’ preferences. However, depending 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.

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  • Poulsen, Anders, 2001. "Reciprocity, Materialism and Welfare: An Evolutionary Model," Working Papers 01-3, University of Aarhus, Aarhus School of Business, Department of Economics.
    • Handle: RePEc:hhs:aareco:2001_003
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    More about this item

    Keywords

    Preference evolution; Reciprocity; Altruism; Materialism; Subjective and material eciency; Bargaining; Indirect evolutionary approach;
    All these keywords.

    JEL classification:

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

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