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Inequality Aversion in a Variety of Games - An Indirect Evolutionary Analysis -

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  • Werner Güth
  • Stefan Napel

Abstract

The indirect evolutionary approach integrates forward-looking evaluation of opportunities and adaptation in the light of the past. Subjective motivation determines behavior, but long-run evolutionary success of motivational types depends on objective factors only. This can justify intrinsic aversion to inequality in reward allocation games, though earlier analysis has typically been restricted to a particular game. We consider a more complex environment by combining two games that – studied in isolation – yield opposite implications for inequality aversion. Persistent divergence between intrinsic motivation and true material success is possible. It depends in the type of inequality aversion considered and, importantly, agents’ ability to discriminate between the qualitatively different games they face.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-23.

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Length: 22 pages
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Handle: RePEc:esi:discus:2002-23

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References

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  13. Werner Güth & Hartmut Kliemt & Stefan Napel, . "Wie Du mir, so ich Dir! - Ökonomische Theorie und Experiment am Beispiel der Reziprozität," Papers on Strategic Interaction 2002-19, Max Planck Institute of Economics, Strategic Interaction Group.
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Citations

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Cited by:
  1. Siegfried Berninghaus & Christian Korth & Stefan Napel, 2007. "Reciprocity—an indirect evolutionary analysis," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 579-603, October.
  2. Sven Fischer, 2005. "Inequality Aversion in Ultimatum Games with Asymmetric Conflict Payoffs - A Theoretical and Experimental Analysis -," Papers on Strategic Interaction 2005-36, Max Planck Institute of Economics, Strategic Interaction Group.
  3. Robertas Zubrickas, 2009. "How Exposure to Markets Can Favor Inequity-Averse Preferences," Levine's Working Paper Archive 814577000000000130, David K. Levine.
  4. Susanne Büchner & Werner Güth & Luis Miller, 2011. "Individually selecting among conventions - an evolutionary and experimental analysis," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 285-301, May.
  5. repec:hal:ciredw:halshs-00275386 is not listed on IDEAS
  6. Werner Güth, 2009. "Optimal gelaufen, einfach zufrieden oder unüberlegt gehandelt? Zur Theorie (un)eingeschränkt rationalen Entscheidens," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(s1), pages 75-100, 05.

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