Moral behavior and legal institutions coevolve. While evolutionary game theory has often analyzed the evolution of moral behavior within given institutional rules, it has not examined the coevolution of moral preferences and different institutional aspects of the decision environment. By an indirect evolutionary approach, we analyze the coevolution of moral preferences (in the sense of trustworthiness) and legal institutions like court rulings and legal insurance. We find that preference detection capabilities crowd in morality and can thus render useless the role of courts and legal insurance as public institutions. Legal institutions become crucial for the emergence of morality, however, when information about preference types is not available. This holds true even when courts do not have superior detection capabilities than other agents.
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Volume (Year): 1 (2005) Issue (Month): 02 (December) Pages: 155-174 Download reference. The following formats are available: HTML
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Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2004.
"What to Maximize if You Must,"
Discussion Papers
1414, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!]
HEIFETZ, Aviad & SHANNON, Chris & SPIEGEL, Yossi, 2003.
"What to maximize if you must,"
CORE Discussion Papers
2003047, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!]
Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2005.
"The Dynamic Evolution of Preferences,"
Discussion Papers
1415, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!]
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