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Equilibrium vengeance

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Author Info
Friedman, Daniel
Singh, Nirvikar

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Abstract

The efficiency-enhancing role of the vengeance motive is illustrated in a simple social dilemma game in extensive form. Incorporating behavioral noise and observational noise in random interactions in large groups leads to seven continuous families of (short run) Perfect Bayesian equilibria (PBE) that involve both vengeful and non-vengeful types. A new long run evolutionary equilibrium concept, Evolutionary Perfect Bayesian Equilibrium (EPBE), shrinks the equilibrium set to two points. In one EPBE, only the non-vengeful type survives and there are no mutual gains. In the other EPBE, both types survive and reap mutual gains.

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Publisher Info
Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 66 (2009)
Issue (Month): 2 (July)
Pages: 813-829
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Handle: RePEc:eee:gamebe:v:66:y:2009:i:2:p:813-829

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Web page: http://www.elsevier.com/locate/inca/622836

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Related research
Keywords: Reciprocity Vengeance Evolutionary perfect Bayesian equilibrium Social dilemmas;

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Daniel Friedman & Nirvikar Singh, 2004. "Negative Reciprocity: The Coevolution of Memes and Genes," Game Theory and Information 0412003, EconWPA. [Downloadable!]
    Other versions:
  2. Daniel Friedman & Nirvikar Singh, 2004. "Vengefulness Evolves in Small Groups," Game Theory and Information 0412005, EconWPA. [Downloadable!]
    Other versions:
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