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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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory D6 - Microeconomics - - Welfare Economics
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Carlsson, Hans & van Damme, Eric, 1993.
"Global Games and Equilibrium Selection,"
Econometrica,
Econometric Society, vol. 61(5), pages 989-1018, September.
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