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Comparative Statics of Altruism and Spite

Author

Listed:
  • Igal Milchtaich

    (Bar-Ilan University)

Abstract

The equilibrium outcome of a strategic interaction between two or more people may depend on the weight they place on each other’s payoff. A positive, negative or zero weight represents altruism, spite or complete selfishness, respectively. Paradoxically, the real, material payoff in equilibrium for a group of altruists may be lower than for selfish or spiteful groups. However, this can only be so if the equilibria involved are unstable. If they are stable, the total (equivalently, average) payoff can only increase or remain unchanged with an increasing degree of altruism.

Suggested Citation

  • Igal Milchtaich, 2008. "Comparative Statics of Altruism and Spite," Working Papers 2008-05, Bar-Ilan University, Department of Economics.
  • Handle: RePEc:biu:wpaper:2008-05
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    More about this item

    Keywords

    Altruism; spite; comparative statics; strategic games; stability of equilibrium;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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