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Interactive preferences

Author

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  • Nax, Heinrich H.
  • Murphy, Ryan O.
  • Ackermann, Kurt A.

Abstract

Game theory presumes that agents have unique preference orderings over outcomes that prescribe unique preference orderings over actions in response to other players’ actions, independent of other players’ preferences. This independence assumption is necessary to permit game-theoretic best response reasoning, but at odds with introspection, because preferences toward one another often dynamically depend on each other. In this note, we propose a model of interactive preferences. The model is validated with data from a laboratory experiment. The main finding of our study is that pro-sociality diminishes over the course of the interactions.

Suggested Citation

  • Nax, Heinrich H. & Murphy, Ryan O. & Ackermann, Kurt A., 2015. "Interactive preferences," Economics Letters, Elsevier, vol. 135(C), pages 133-136.
    • Handle: RePEc:eee:ecolet:v:135:y:2015:i:c:p:133-136
    DOI: 10.1016/j.econlet.2015.08.008
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    References listed on IDEAS

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    Cited by:

    1. Masiliūnas, Aidas & Nax, Heinrich H., 2020. "Framing and repeated competition," Games and Economic Behavior, Elsevier, vol. 124(C), pages 604-619.
    2. Ivo Baur & Heinrich H. Nax, 2018. "Adapting Governance Incentives to Avoid Common Pool Resource Underuse: The Case of Swiss Summer Pastures," Sustainability, MDPI, vol. 10(11), pages 1-20, October.
    3. Da Silva, Sergio & De Faveri, Dinorá & Correa, Ana & Matsushita, Raul, 2017. "Social preferences, financial literacy and intertemporal choice," MPRA Paper 79535, University Library of Munich, Germany.
    4. Grech, Philip D. & Nax, Heinrich H., 2020. "Rational altruism? On preference estimation and dictator game experiments," Games and Economic Behavior, Elsevier, vol. 119(C), pages 309-338.
    5. Kurt A. Ackermann & Ryan O. Murphy, 2019. "Explaining Cooperative Behavior in Public Goods Games: How Preferences and Beliefs Affect Contribution Levels," Games, MDPI, vol. 10(1), pages 1-34, March.
    6. Caleb M. Koch & Heinrich H. Nax, 2022. "Groundwater Usage and Strategic Complements: Part I (Instrumental Variables)," Games, MDPI, vol. 13(5), pages 1-19, October.

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