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The Coevolution of Morality and Legal Institutions - An indirect evolutionary approach -

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  • Werner Güth

    ()

  • Axel Ockenfels

    ()

Abstract

Evolutionary game theory is often used to analyze the evolution of moral preferences. A few studies also examine the coevolution of preferences and an institutional aspect of the decision environment. Allowing the adaptation of just one institutional aspect such as litigation or legal insurance to coevolve with morality, however, may be inadequate. If court rulings coevolve with morality the need for legal insurance may vary over time. Applying the indirect evolutionary approach, we therefore analyze the coevolution of morality in the sense of trustworthiness, court rulings (based on rational belief formation), and the population share which is legally insured. If type detection is not possible, the evolutionary interaction of the legal institutions may play a decisive role for the emergence of morality.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-06.

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Length: 23 pages
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Handle: RePEc:esi:discus:2002-06

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  1. Gueth, W. & Kliemt, H., 1993. "Competition or Co-Operation," Discussion Paper 1993-39, Tilburg University, Center for Economic Research.
  2. Kirstein, Roland & Schmidtchen, Dieter, 1997. "Judicial Detection Skill and Contractual Compliance," CSLE Discussion Paper Series 97-07, Saarland University, CSLE - Center for the Study of Law and Economics.
  3. Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September.
  4. Güth, Werner & Ockenfels, Axel, 1999. "Evolutionary norm enforcement," SFB 373 Discussion Papers 1999,84, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  5. Bar-Gill, O. & Fershtman, C., 2000. "The Limit of Public Policy: Endogenous Preferences," Discussion Paper 2000-71, Tilburg University, Center for Economic Research.
  6. Ockenfels, Axel & Selten, Reinhard, 2000. "An Experiment on the Hypothesis of Involuntary Truth-Signalling in Bargaining," Games and Economic Behavior, Elsevier, vol. 33(1), pages 90-116, October.
  7. Geoffrey Brennan & Werner Güth & Hartmut Kliemt, 2003. "Trust in the Shadow of the Courts," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(1), pages 16-, March.
  8. Werner Güth & Axel Ockenfels, 2002. "The Coevolution of Trust and Institutions in Anonymous and Non-anonymous Communities," Papers on Strategic Interaction 2002-07, Max Planck Institute of Economics, Strategic Interaction Group.
  9. Selten, Reinhard, 1983. "Evolutionary stability in extensive two-person games," Mathematical Social Sciences, Elsevier, vol. 5(3), pages 269-363, September.
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Cited by:
  1. Heifetz, Aviad & Shannon, Chris & Spiegel, Yossi, 2007. "What to maximize if you must," Journal of Economic Theory, Elsevier, vol. 133(1), pages 31-57, March.
  2. Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2007. "The Dynamic Evolution of Preferences," Economic Theory, Springer, vol. 32(2), pages 251-286, August.
  3. Eyal Winter & Ignacio Garcia-Jurado & Jose Mendez-Naya & Luciano Mendez-Naya, 2009. "Mental Equilibrium and Rational Emotions," Discussion Paper Series dp521, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  4. Axel Ockenfels, 2008. "Marktdesign und Experimentelle Wirtschaftsforschung," Working Paper Series in Economics 41, University of Cologne, Department of Economics.
  5. Axel Ockenfels, 2002. "Reputationsmechanismen auf Internet-Marktplattformen - Theorie und Empirie -," Papers on Strategic Interaction 2002-46, Max Planck Institute of Economics, Strategic Interaction Group.
  6. Wolfgang Leininger & Axel Ockenfels, 2007. "The Penalty-Duel and Institutional Design: Is there a Neeskens-Effect?," Working Paper Series in Economics 34, University of Cologne, Department of Economics.
  7. Safarzynska, Karolina & van den Bergh, Jeroen C.J.M., 2010. "Evolving power and environmental policy: Explaining institutional change with group selection," Ecological Economics, Elsevier, vol. 69(4), pages 743-752, February.
  8. Axel Ockenfels, 2002. "New Institutional Structures on the Internet: The Economic Design of Online Auctions," Papers on Strategic Interaction 2002-08, Max Planck Institute of Economics, Strategic Interaction Group.
  9. Werner Güth & Axel Ockenfels, 2002. "The Coevolution of Trust and Institutions in Anonymous and Non-anonymous Communities," Papers on Strategic Interaction 2002-07, Max Planck Institute of Economics, Strategic Interaction Group.

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