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When envy helps explain coordination

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Author Info
Thierry Vignolo () (LA.M.E.T.A)

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Abstract

This paper identifies a class of symmetric coordination games in which the presence of envious people helps players to coordinate on a particular strict Nash equilibrium. In these games, the selected equilibrium is always risk-dominant. We also find that envious preferences are evolutionary stable when they lead to Pareto-efficiency.

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File URL: http://www.economicsbulletin.com/2005/volume3/EB-05C70011A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 3 (2005)
Issue (Month): 12 ()
Pages: 1-7
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:3:y:2005:i:12:p:1-7

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Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
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Related research
Keywords: Envy; Coordination games; Risk-dominance; Evolutionary stability;

Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D6 - Microeconomics - - Welfare Economics

References listed on IDEAS
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  1. Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-77, November. [Downloadable!] (restricted)
  2. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384.
  3. Mui, Vai-Lam, 1995. "The economics of envy," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 311-336, May. [Downloadable!] (restricted)
    Other versions:
  4. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January. [Downloadable!] (restricted)
    Other versions:
  5. Bethwaite, Judy & Tompkinson, Paul, 1996. "The ultimatum game and non-selfish utility functions," Journal of Economic Psychology, Elsevier, vol. 17(2), pages 259-271, April. [Downloadable!] (restricted)
  6. Kirchsteiger, Georg, 1994. "The role of envy in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 25(3), pages 373-389, December. [Downloadable!] (restricted)
  7. Carlsson, Hans & van Damme, Eric, 1993. "Global Games and Equilibrium Selection," Econometrica, Econometric Society, vol. 61(5), pages 989-1018, September. [Downloadable!] (restricted)
    Other versions:
  8. Cason, Timothy N. & Mui, Vai-Lam, 2002. "Fairness and sharing in innovation games: a laboratory investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 243-264, July. [Downloadable!] (restricted)
  9. Cooper, Russell & John, Andrew, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, MIT Press, vol. 103(3), pages 441-63, August. [Downloadable!] (restricted)
  10. Robson, Arthur J. & Vega-Redondo, Fernando, 1996. "Efficient Equilibrium Selection in Evolutionary Games with Random Matching," Journal of Economic Theory, Elsevier, vol. 70(1), pages 65-92, July. [Downloadable!] (restricted)
    Other versions:
  11. Bester, Helmut & Guth, Werner, 1998. "Is altruism evolutionarily stable?," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 193-209, February. [Downloadable!] (restricted)
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  12. Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March. [Downloadable!] (restricted)
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This page was last updated on 2009-11-16.


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