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Evolutionary Models of Preference Formation

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  • Alger, Ingela
  • Weibull, Jörgen W.

Abstract

The literature on the evolution of preferences of individuals in strategic interactions is vast and diverse. We organize the discussion around the following question: Supposing that material outcomes drive evolutionary success, under what circumstances does evolution promote Homo oeconomicus, defined as material self-interest, and when does it instead lead to other preferences? The literature suggests that Homo oeconomicus is favored by evolution only when individuals' preferences are their private information and the population is large and well-mixed so that individuals with rare mutant preferences almost never get to interact with each other. If rare mutants instead interact more often (say, due to local dispersion), evolution instead favors a certain generalization of Homo oeconomicus including a Kantian concern. If individuals interact under complete information about preferences, evolution destabilizes Homo oeconomicus in virtually all games.

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  • Alger, Ingela & Weibull, Jörgen W., 2018. "Evolutionary Models of Preference Formation," TSE Working Papers 18-955, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:32952
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    Cited by:

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    7. Boris van Leeuwen & Ingela Alger, 2024. "Estimating Social Preferences and Kantian Morality in Strategic Interactions," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 2(4), pages 665-706.
    8. Serdarevic, Nina & Strømland, Eirik & Tjøtta, Sigve, 2021. "It pays to be nice: The benefits of cooperating in markets," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
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    12. Boris van Leeuwen & Ingela Alger, 2024. "Estimating Social Preferences and Kantian Morality in Strategic Interactions," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 2(4), pages 665-706.
    13. Gregory Ponthiere, 2024. "Epictetusian rationality and evolutionary stability," Journal of Evolutionary Economics, Springer, vol. 34(3), pages 647-673, July.
    14. Alger, Ingela & Rivero-Wildemauwe, José Ignacio, 2024. "Doing the right thing (or not) in a lemons-like situation: on the role of social preferences and Kantian moral concerns," IAST Working Papers 24-161, Institute for Advanced Study in Toulouse (IAST).
    15. Lahkar, Ratul, 2019. "Elimination of non-individualistic preferences in large population aggregative games," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 150-165.
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    17. Christian Hilbe & Maria Kleshnina & Kateřina Staňková, 2023. "Evolutionary Games and Applications: Fifty Years of ‘The Logic of Animal Conflict’," Dynamic Games and Applications, Springer, vol. 13(4), pages 1035-1048, December.
    18. Cheikbossian, Guillaume, 2021. "The evolutionary stability of in-group altruism in productive and destructive group contests," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 236-252.
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    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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