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The Evolution of Reciprocal Preferences

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Author Info
Samuel Bowles
Herbert Gintis

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Abstract

A number of outstanding puzzles in economics may be resolved by recognizing that where members of a group benefit from mutual adherence to a social norm, agents may obey the norm and punish its violators, even when this behavior cannot be motivated by self-regarding, outcome-oriented preferences. This behavior, which we call strong reciprocity, is a form of altruism in that it benefits others at the expense of the individual exhibiting it. Thus where benefits and costs are measured in fitness terms and where the relevant behaviors are governed by genetic inheritance subject to natural selection, it is generally thought that, as a form of altruism, strong reciprocity cannot invade a population of self-interested types, nor can it be sustained in a stable population equilibrium. We show that strong reciprocity can invade a population of self-interested types and can be sustained in a stable population equilibrium, and we show that, under assumptions that appear to reflect the relevant social-environmental conditions, the model can account for the genetic evolution of strong reciprocity.

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Paper provided by Santa Fe Institute in its series Working Papers with number 00-12-072.

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Date of creation: Dec 2000
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Handle: RePEc:wop:safiwp:00-12-072

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  1. Rajiv Sethi & E. Somanathan, 2002. "Norm compliance and strong reciprocity," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 02-03, Indian Statistical Institute, New Delhi, India. [Downloadable!]
    Other versions:
  2. Ted Bergstrom, 2001. "Evolution of Social Behavior: Individual and Group Selection Models," University of California at Santa Barbara, Economics Working Paper Series wp14-01, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
  3. Jessica L. Cohen & William T. Dickens, 2002. "A Foundation for Behavioral Economics," American Economic Review, American Economic Association, vol. 92(2), pages 335-338, May. [Downloadable!]
  4. John H. Finch & Robert McMaster, 2005. "The paths of classical political economy and Walrasian economics through Bowles and Gintis’ rendering of post Walrasian economics," SCEME Working Papers: Advances in Economic Methodology 009/2005, SCEME. [Downloadable!]
  5. Alan Kirman & Sheri Markose & Simone Giasante & Paolo Pin, 2007. "Marginal contribution, reciprocity and equity in segregated groups: Bounded rationality and self-organization in social networks," Economics Discussion Papers 629, University of Essex, Department of Economics. [Downloadable!]
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  6. Greig, Fiona & Bohnet, Iris, 2005. "Is There Reciprocity in a Reciprocal Exchange Economy? Evidence from a Slum in Nairobi, Kenya," Working Paper Series rwp05-044, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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