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Social Capital and Endogenous Preferences

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  • Anders Poulsen

    ()

  • Gert Svendsen

Abstract

In this paper we analyze whether social capital can emerge endogenously from a process of preference evolution. We define social capital as preferences that promote voluntary cooperation in a one-shot Prisoner’s Dilemma game. We investigate how the endogenous preferences depend on the amount of information individuals have about each other’s preferences. When there is sufficiently much information, maximal social capital emerges. In general, the level of social capital varies positively with the amount of information. Our results may add to an understanding of the factors that determine a society’s ability to generate cooperative outcomes. Copyright Springer Science + Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11127-005-0266-0
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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 123 (2005)
Issue (Month): 1 (April)
Pages: 171-196

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Handle: RePEc:kap:pubcho:v:123:y:2005:i:1:p:171-196

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Web page: http://www.springerlink.com/link.asp?id=100332

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Citations

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Cited by:
  1. Poulsen, Anders & Poulsen, Odile, 2010. "Prisoner's Dilemma payoffs and the evolution of co-operative preferences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 158-162, April.
  2. Bergh, Andreas & Engseld, Peter, 2005. "The Problem of Cooperation and Reputation Based Choice," Working Papers 2005:27, Lund University, Department of Economics, revised 04 May 2006.
  3. Poulsen, Odile & Svendsen, Gert Tinggaard, 2005. "The Long and Winding Road: Social Capital and Commuting," Working Papers 05-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  4. Edgar Carrera, 2012. "Imitation and evolutionary stability of poverty traps," Journal of Bioeconomics, Springer, vol. 14(1), pages 1-20, April.
  5. Emily Chamlee-Wright & Virgil Storr, 2011. "Social capital, lobbying and community-based interest groups," Public Choice, Springer, vol. 149(1), pages 167-185, October.
  6. Poulsen, Odile & Svendsen, Gert Tinggaard, 2004. "Social Capital and Market Centralisation: A Two-Sector Model," Working Papers 04-12, University of Aarhus, Aarhus School of Business, Department of Economics.
  7. Poulsen, Odile & Svendsen, Gert Tinggaard, 2005. "Love Thy Neighbor: Bonding versus Bridging Trust," Working Papers 05-7, University of Aarhus, Aarhus School of Business, Department of Economics.

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