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Coevolution of cooperation, preferences, and cooperative signals in social dilemmas

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  • Müller, Stephan
  • von Wangenheim, Georg

Abstract

We study the coevolution of cooperation, preferences, and cooperative signals in an environment where individuals engage in a signaling-extended prisoner's dilemma. We prove the existence of a cooperative equilibrium constituted by a (set of) limit cycle(s) and stabilized by the dynamic interaction of multiple Bayesian equilibria. This equilibrium: (1) exists under mild conditions, and (2) can stabilize a population that is characterized by the heterogeneity of behavior, preferences, and signaling. We thereby offer an explanation for the persistent regularities observed in laboratory and field data on cooperative behavior. The cyclicity of the equilibrium offers an alternative account for observed historical changes in (social norms of) cooperation in societies which are not driven by social or environmental shocks.

Suggested Citation

  • Müller, Stephan & von Wangenheim, Georg, 2019. "Coevolution of cooperation, preferences, and cooperative signals in social dilemmas," University of Göttingen Working Papers in Economics 221 (revised), University of Goettingen, Department of Economics, revised 2019.
    • Handle: RePEc:zbw:cegedp:221r
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    References listed on IDEAS

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    More about this item

    Keywords

    evolutionary game theory; cooperation; preferences; signaling;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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