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Altruists Egoists and Hooligans in a Local Interaction Model

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Author Info
Ilan Eshel
Larry Samuelson
Avner Shaked
Abstract

This paper studies a population of agents, each of whom can be either an Altruist or an Egoist. Altruists confer benefits on others at a cost to themselves. Altruism is thus a strictly dominated strategy and cannot survive if agents are rational best-responders. We assume that agents choose their actions by imitating others who earn high payoffs. We also assume that interactions between agents are local, so that each agent a ects (and is affected by) only his neighbors. Altruists can survive in such a world if they are grouped together, so that the benefits of Altruism are enjoyed primarily by other Altruists, who then earn relatively high payo s and are imitated. The addition of mutations to the model threatens this survival by allowing such groups to be invaded by mutant Egoists. However, mutations can also be inimical to Egoists, by removing the Altruists which Egoists exploit,and the net effect of mutations is to ensure that Altruists survive.

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Paper provided by ESRC Centre on Economics Learning and Social Evolution in its series ELSE working papers with number 005.

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Handle: RePEc:els:esrcls:005

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Related research
Keywords: Altruism Cooperation LocalInteraction

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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  1. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September. [Downloadable!] (restricted)
  2. Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July. [Downloadable!] (restricted)
  3. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June. [Downloadable!] (restricted)
  4. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January. [Downloadable!] (restricted)
  5. Samuelson Larry, 1994. "Stochastic Stability in Games with Alternative Best Replies," Journal of Economic Theory, Elsevier, vol. 64(1), pages 35-65, October. [Downloadable!] (restricted)
  6. Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May. [Downloadable!] (restricted)
  7. Gilboa, Itzhak & Schmeidler, David, 1995. "Case-Based Decision Theory," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 605-39, August. [Downloadable!] (restricted)
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  8. Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1995. "Social Norms and Random Matching Games," Games and Economic Behavior, Elsevier, vol. 9(1), pages 79-109, April. [Downloadable!] (restricted)
  9. Gilboa, Itzhak & Schmeidler, David, 1996. "Case-Based Optimization," Games and Economic Behavior, Elsevier, vol. 15(1), pages 1-26, July. [Downloadable!] (restricted)
    Other versions:
    • Itzhak Gilboa & David Schmeidler, 1993. "Case-Based Optimization," Discussion Papers 1039, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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