Altruistic Versus Rational Behavior in a Public Good Game

This file is part of IDEAS, which uses RePEc data

Altruistic Versus Rational Behavior in a Public Good Game

Author Info

Alexander Matros

Abstract

This paper analyses an evolutionary version of the Public Good game of Eshel, Samuelson, and Shaked (1998) in which agents can choose between imitation and best-reply decision rules. We describe conditions under which altruistic and spiteful (maximizing) behavior arise: these conditions are established for any number of neighbors and any total number of agents in the population. Given mistake-free play, (short-run) outcomes are identical whether agents are constrained to employ an imitation rule only; or they can choose between imitation and best-reply rules. Given the possibility of mistakes, (long-run) outcomes vary across these two scenarios. The paper suggests how to provide public goods and gives an explanation of why we observe seemingly irrational cooperation - altruistic behavior - in the rational world.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info
Paper provided by University of Pittsburgh, Department of Economics in its series Working Papers with number 309.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Dec 2006
Date of revision: Sep 2008
Handle: RePEc:pit:wpaper:309

Contact details of provider:
Postal: 4S01 W.W. Posvar hall, 230 Bouquet St, Pittsburgh, PA 15260
Phone: (412)648-1760
Fax: (412)648-1793
Web page: http://www.econ.pitt.edu/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Hariharan).

Related research
Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-05-19 (All new papers)
NEP-CBE-2007-05-19 (Cognitive & Behavioural Economics)
NEP-EVO-2007-05-19 (Evolutionary Economics)
NEP-EXP-2007-05-19 (Experimental Economics)
NEP-GTH-2007-05-19 (Game Theory)
NEP-PBE-2007-05-19 (Public Economics)
NEP-SOC-2007-05-19 (Social Norms & Social Capital)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Dutta, Prajit K & Radner, Roy, 1999. "Profit Maximization and the Market Selection Hypothesis," Review of Economic Studies, Blackwell Publishing, vol. 66(4), pages 769-98, October. [Downloadable!] (restricted)
Theodore C. Bergstrom, 2002. "Evolution of Social Behavior: Individual and Group Selection," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 67-88, Spring. [Downloadable!] (restricted)
Jose Apesteguia & Steffen Huck & Joerg Oechssler, 2003. "Imitation - Theory and Experimental Evidence," University of California at Santa Barbara, Economics Working Paper Series 17-03, Department of Economics, UC Santa Barbara. [Downloadable!]
Other versions:
- Jose Apesteguia & Steffen Huck & Jorg Oechssler, 2003. "Imitation - Theory and Experimental Evidence," Experimental 0309001, EconWPA. [Downloadable!]
- José Apesteguía & Steffen Huck & Jorg Oechssler, 2003. "Imitation-Theory and Experimental Evidence-," Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad PÃºblica de Navarra 0306, Departamento de Economía - Universidad Pública de Navarra. [Downloadable!]
- Jose Apesteguia & Steffen Huck & Jörg Oechssler, 2005. "Imitation - Theory and Experimental Evidence -," Working Papers 0419, University of Heidelberg, Department of Economics, revised Apr 2005. [Downloadable!]
- Jose Apesteguia & Steffen Huck & Jorg Oechssler, 2004. "Imitation - Theory and Experimental Evidence," Levine's Bibliography 122247000000000132, UCLA Department of Economics. [Downloadable!]
- Jose Alpesteguia & Steffen Huck & Joerg Oechssler, 2003. "Imitation -- Theory and Experimental Evidence," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
- Jose Apestgeguia & Steffen Huck & Jörg Oechssler, 2005. "Imitation - Theory and Experimental Evidence," Discussion Papers 54, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
- Jose Apesteguia & Steffen Huck & Jörg Oechssler, 2003. "Imitation - Theory and Experimental Evidence," Bonn Econ Discussion Papers bgse20_2003, University of Bonn, Germany, revised Aug 2004. [Downloadable!]
- Apesteguia, Jose & Huck, Steffen & Oechssler, Jorg, 2007. "Imitation--theory and experimental evidence," Journal of Economic Theory, Elsevier, vol. 136(1), pages 217-235, September. [Downloadable!] (restricted)
Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January. [Downloadable!] (restricted)
Other versions:
- Kandori, M. & Mailath, G.J., 1991. "Learning, Mutation, And Long Run Equilibria In Games," Papers 71, Princeton, Woodrow Wilson School - John M. Olin Program.
Ted Bergstrom & Oded Stark, 1993. "How Altruism Can Prevail in an Evolutionary Environment," University of California at Santa Barbara, Economics Working Paper Series 1993B, Department of Economics, UC Santa Barbara. [Downloadable!]
Other versions:
- Ted Bergstrom & Oded Stark, . "How Altruism Can Prevail in an Evolutionary Environment," Papers _024, University of Michigan, Department of Economics. [Downloadable!]
- Theodore C. Bergstrom & Oded Stark, 1994. "How Altruism Can Prevail in an Evolutionary Environment," Microeconomics 9401001, EconWPA. [Downloadable!]
- Bergstrom, T.C. & Stark, O., 1993. "How Altruism Can Prevail in an Evolutionary Environment," Papers 93-01, Michigan - Center for Research on Economic & Social Theory.
- Bergstrom, Theodore C & Stark, Oded, 1993. "How Altruism Can Prevail in an Evolutionary Environment," American Economic Review, American Economic Association, vol. 83(2), pages 149-55, May. [Downloadable!] (restricted)
Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September. [Downloadable!] (restricted)
Fernando Vega-Redondo, 1997. "The Evolution of Walrasian Behavior," Econometrica, Econometric Society, vol. 65(2), pages 375-384, March.
Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58, pages 211. [Downloadable!] (restricted)
Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July. [Downloadable!] (restricted)
Timothy C. Salmon, 2001. "An Evaluation of Econometric Models of Adaptive Learning," Econometrica, Econometric Society, vol. 69(6), pages 1597-1628, November. [Downloadable!] (restricted)
Mookherjee Dilip & Sopher Barry, 1994. "Learning Behavior in an Experimental Matching Pennies Game," Games and Economic Behavior, Elsevier, vol. 7(1), pages 62-91, July. [Downloadable!] (restricted)
Blume, Lawrence & Easley, David, 1992. "Evolution and market behavior," Journal of Economic Theory, Elsevier, vol. 58(1), pages 9-40, October. [Downloadable!] (restricted)
repec:att:wimass:199612r is not listed on IDEAS
Cheung, Yin-Wong & Friedman, Daniel, 1997. "Individual Learning in Normal Form Games: Some Laboratory Results," Games and Economic Behavior, Elsevier, vol. 19(1), pages 46-76, April. [Downloadable!] (restricted)
Stahl Dale O., 1993. "Evolution of Smartn Players," Games and Economic Behavior, Elsevier, vol. 5(4), pages 604-617, October. [Downloadable!] (restricted)
Colin Camerer & Teck-Hua Ho, 1999. "Experience-weighted Attraction Learning in Normal Form Games," Econometrica, Econometric Society, vol. 67(4), pages 827-874, July.
Matros, Alexander, 2003. "Clever agents in adaptive learning," Journal of Economic Theory, Elsevier, vol. 111(1), pages 110-124, July. [Downloadable!] (restricted)
Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January. [Downloadable!] (restricted)
Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 1999. "Learning in Cournot Oligopoly--An Experiment," Economic Journal, Royal Economic Society, vol. 109(454), pages C80-95, March. [Downloadable!] (restricted)
Other versions:
- Steffen Huck & Hans-Theo Normann & Joerg Oechssler, 1997. "Learning in Cournot Oligopoly - An Experiment," Game Theory and Information 9707009, EconWPA, revised 22 Jul 1997. [Downloadable!]
Eshel, Ilan & Samuelson, Larry & Shaked, Avner, 1998. "Altruists, Egoists, and Hooligans in a Local Interaction Model," American Economic Review, American Economic Association, vol. 88(1), pages 157-79, March. [Downloadable!] (restricted)
Saez-Marti, Maria & Weibull, Jorgen W., 1999. "Clever Agents in Young's Evolutionary Bargaining Model," Journal of Economic Theory, Elsevier, vol. 86(2), pages 268-279, June. [Downloadable!] (restricted)
Other versions:
- Saez-Marti, M. & Weibull, J.W., 1998. "Clever Agents in Young's Evolutionary Bargaining Model," Research Institute of Industrial Economics Working Papers 507, Research Institute of Industrial Economics (IFN).
- Saez-Marti, Maria & Weibull, Jörgen W., 1998. "Clever agents in Young's evolutionary bargaining model," Working Paper Series in Economics and Finance 281, Stockholm School of Economics.
- Weibull, Jörgen W. & Saez-Marti, Maria, 1998. "Clever Agents in Young's Evolutionary Bargaining Model," Working Paper Series 507, Research Institute of Industrial Economics.
Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-11, May. [Downloadable!] (restricted)

Full references

Statistics
Access and download statistics

Did you know? Springer Verlag was the first commercial publisher to be listed on RePEc.

This page was last updated on 2009-11-22.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.