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Aspiration, Sympathy and Minmax Outcome

Author

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  • Akihiko Matsui

    (University of Tokyo)

  • In-Koo Cho

    (University of Illinois)

Abstract

We focus on the outcomes sustained by the decision rule consistent with the satisficing behavior a la Simon [1987], slightly perturbed to incorporate sympathy in the spirit of Hume [1978]. For a general class of two person games, as the probability of continuing the long term relationship converges to 1, all agents in the economy almost always play the most egalitarian outcome among Pareto efficient outcome, which is the efficient Rawlsian outcome. The Rawlsian criterion is generated through repeated long term interactions among agents in a decentralized fashion.

Suggested Citation

  • Akihiko Matsui & In-Koo Cho, 2010. "Aspiration, Sympathy and Minmax Outcome," 2010 Meeting Papers 57, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:57
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    References listed on IDEAS

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