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Biology and the Arguments of Utility

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  • Luis Rayo
  • Arthur J. Robson

Abstract

Why did evolution not give us a utility function that is offspring alone" Why do we care intrinsically about other outcomes, food, for example, and what determines the intensity of such preferences" A common view is that such other outcomes enhance fitness and the intensity of our preference for a given outcome is proportional to its contribution to fitness. We argue that this view is inaccurate. Specifically, we show that in the presence of informational imperfections, the evolved preference for a given outcome is determined by the individual's degree of ignorance regarding its significance. Our model sheds light on imitation and prepared learning, whereby some peer attitudes are more influential than others. Testable implications of the model include systematically biased choices in modern times. Most notably, we apply the model to help explain the demographic transition.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Luis Rayo & Arthur J. Robson, 2013. "Biology and the Arguments of Utility," Levine's Working Paper Archive 786969000000000787, David K. Levine.
  • Handle: RePEc:cla:levarc:786969000000000787
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    References listed on IDEAS

    as
    1. Chesnais, Jean-Claude, 1992. "The Demographic Transition: Stages, Patterns, and Economic Implications," OUP Catalogue, Oxford University Press, number 9780198286592, Decembrie.
    2. Nick Netzer, 2009. "Evolution of Time Preferences and Attitudes toward Risk," American Economic Review, American Economic Association, vol. 99(3), pages 937-955, June.
    3. repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
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    6. Arthur J. Robson, 2001. "Why Would Nature Give Individuals Utility Functions?," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 900-929, August.
    7. Arthur J. Robson & Balazs Szentes & Emil Iantchev, 2012. "The Evolutionary Basis of Time Preference: Intergenerational Transfers and Sex," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 172-201, November.
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    13. Florian Herold & Nick Netzer, 2010. "Probability Weighting as Evolutionary Second-best," SOI - Working Papers 1005, Socioeconomic Institute - University of Zurich, revised Jan 2011.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Why are children not the focus of our preferences?
      by Economic Logician in Economic Logic on 2013-05-27 18:56:00

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    Cited by:

    1. José F. Tudón M., 2019. "Perception, utility, and evolution," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 191-208, December.
    2. Adriani, Fabrizio & Sonderegger, Silvia, 2020. "Optimal similarity judgments in intertemporal choice (and beyond)," Journal of Economic Theory, Elsevier, vol. 190(C).
    3. Ricardo Alonso & Isabelle Brocas & Juan D. Carrillo, 2014. "Resource Allocation in the Brain," Review of Economic Studies, Oxford University Press, vol. 81(2), pages 501-534.
    4. David Jiménez-Gómez, 2018. "The Evolution of Self-Control in the Brain," Working Papers. Serie AD 2018-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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