IDEAS home Printed from https://ideas.repec.org/p/xrs/sfbmaa/02-03.html
   My bibliography  Save this paper

Two-Speed Evolution of Strategies and Preferences in Symmetric Games

Author

Listed:
  • Possajennikov, Alex

    (Sonderforschungsbereich 504)

Abstract

Agenst in a large population are randomly matched to play a material payoff game. They may have preferences that are different from the material payoffs. Agents learn equilibrium strategies according to their preferences before evolution changes the preference distribution in the population according to fitness. When agents know the preferences of the opponent in a match, only efficient symmetric strategy profiles of the material payoff game can be stable. When agents do not know the preferences of the opponent, only Nash equilibria of the material payoff game can be stable. For 2x2 symmetric games I characterize preferences that are stable.

Suggested Citation

  • Possajennikov, Alex, 2002. "Two-Speed Evolution of Strategies and Preferences in Symmetric Games," Sonderforschungsbereich 504 Publications 02-03, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:02-03
    Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
    as

    Download full text from publisher

    File URL: http://www.sfb504.uni-mannheim.de/publications/dp02-03.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Possajennikov, Alex, 2002. "Cooperative Prisoners and Aggressive Chickens: Evolution of Strategies and Preferences in 2x2 Games," Sonderforschungsbereich 504 Publications 02-04, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    2. William H. Sandholm, 2001. "Preference Evolution, Two-Speed Dynamics, and Rapid Social Change," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(3), pages 637-679, July.
    3. David K. Levine, 1998. "Modeling Altruism and Spitefulness in Experiment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 593-622, July.
    4. Huck, Steffen & Oechssler, Jorg, 1999. "The Indirect Evolutionary Approach to Explaining Fair Allocations," Games and Economic Behavior, Elsevier, vol. 28(1), pages 13-24, July.
    5. Basu, Kaushik & Weibull, Jorgen W., 1991. "Strategy subsets closed under rational behavior," Economics Letters, Elsevier, vol. 36(2), pages 141-146, June.
    6. Bester, Helmut & Guth, Werner, 1998. "Is altruism evolutionarily stable?," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 193-209, February.
    7. Dekel, Eddie & Ely, Jeffrey & Yilankaya, Okan, 2004. "Evolution of Preferences," Microeconomics.ca working papers dekel-04-08-13-01-21-07, Vancouver School of Economics, revised 09 Jun 2006.
    8. Kliemt, Hartmut, 2001. "Rationality and Reality," Kyklos, Wiley Blackwell, vol. 54(2-3), pages 309-316.
    9. Alex Possajennikov, 2004. "Two-Speed Evolution of Strategies and Preferences In Symmetric Games," Theory and Decision, Springer, vol. 57(3), pages 227-263, November.
    10. Ely, Jeffrey C. & Yilankaya, Okan, 2001. "Nash Equilibrium and the Evolution of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 255-272, April.
    11. Ok, Efe A. & Vega-Redondo, Fernando, 2001. "On the Evolution of Individualistic Preferences: An Incomplete Information Scenario," Journal of Economic Theory, Elsevier, vol. 97(2), pages 231-254, April.
    12. Possajennikov, Alex, 2000. "On the evolutionary stability of altruistic and spiteful preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 42(1), pages 125-129, May.
    13. Dufwenberg, Martin & Guth, Werner, 1999. "Indirect evolution vs. strategic delegation: a comparison of two approaches to explaining economic institutions," European Journal of Political Economy, Elsevier, vol. 15(2), pages 281-295, June.
    14. 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.
    15. Heidrun C. Hoppe & Philippe Jehiel & Benny Moldovanu, 2006. "License Auctions and Market Structure," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 371-396, June.
    16. Bolle, Friedel, 2000. "Is altruism evolutionarily stable? And envy and malevolence?: Remarks on Bester and Guth," Journal of Economic Behavior & Organization, Elsevier, vol. 42(1), pages 131-133, May.
    17. Swinkels, Jeroen M., 1992. "Evolutionary stability with equilibrium entrants," Journal of Economic Theory, Elsevier, vol. 57(2), pages 306-332, August.
    18. Güth Werner & Kliemt Hartmut & Peleg Bezalel, 2000. "Co-evolution of Preferences and Information in Simple Games of Trust," German Economic Review, De Gruyter, vol. 1(1), pages 83-110, February.
    19. Sethi, Rajiv & Somanathan, E., 2001. "Preference Evolution and Reciprocity," Journal of Economic Theory, Elsevier, vol. 97(2), pages 273-297, April.
    20. Hurkens Sjaak, 1995. "Learning by Forgetful Players," Games and Economic Behavior, Elsevier, vol. 11(2), pages 304-329, November.
    21. Matsui, Akihiko, 1992. "Best response dynamics and socially stable strategies," Journal of Economic Theory, Elsevier, vol. 57(2), pages 343-362, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Burkhard C. Schipper, 2021. "The evolutionary stability of optimism, pessimism, and complete ignorance," Theory and Decision, Springer, vol. 90(3), pages 417-454, May.
    2. Possajennikov, Alexandre, 2002. "Cooperative prisoners and aggressive chickens : evolution of strategies and preferences in 2x2 games," Papers 02-04, Sonderforschungsbreich 504.
    3. Alex Possajennikov, 2005. "Cooperation And Competition: Learning Of Strategies And Evolution Of Preferences In Prisoners' Dilemma And Hawk-Dove Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 443-459.
    4. Alex Possajennikov, 2004. "Two-Speed Evolution of Strategies and Preferences In Symmetric Games," Theory and Decision, Springer, vol. 57(3), pages 227-263, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heller, Yuval & Mohlin, Erik, 2019. "Coevolution of deception and preferences: Darwin and Nash meet Machiavelli," Games and Economic Behavior, Elsevier, vol. 113(C), pages 223-247.
    2. 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.
    3. Thomas Norman, 2004. "Dynamically Stable Preferences," Economics Series Working Papers 207, University of Oxford, Department of Economics.
    4. Norman, Thomas W.L., 2012. "Equilibrium selection and the dynamic evolution of preferences," Games and Economic Behavior, Elsevier, vol. 74(1), pages 311-320.
    5. Carrasco, José A. & Harrison, Rodrigo & Villena, Mauricio, 2018. "Interdependent preferences and endogenous reciprocity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 76(C), pages 68-75.
    6. Ingela Alger & Jörgen W. Weibull, 2019. "Evolutionary Models of Preference Formation," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 329-354, August.
    7. Ziwei Wang & Jiabin Wu, 2023. "Partner Choice and Morality: Preference Evolution under Stable Matching," Papers 2304.11504, arXiv.org, revised Oct 2023.
    8. Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2007. "The Dynamic Evolution of Preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(2), pages 251-286, August.
    9. Heifetz, Aviad & Shannon, Chris & Spiegel, Yossi, 2002. "What to Maximize If You Must," Department of Economics, Working Paper Series qt0hj6631n, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    10. Lahkar, Ratul, 2019. "Elimination of non-individualistic preferences in large population aggregative games," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 150-165.
    11. Konrad, Kai A. & Morath, Florian, 2016. "Bargaining with incomplete information: Evolutionary stability in finite populations," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 118-131.
    12. Alger, Ingela & Weibull, Jörgen W., 2016. "Evolution and Kantian morality," Games and Economic Behavior, Elsevier, vol. 98(C), pages 56-67.
    13. Alger, Ingela & Lehmann, Laurent & Weibull, Jörgen W., 2018. "Evolution of preferences in group-structured populations: genes, guns, and culture," IAST Working Papers 18-73, Institute for Advanced Study in Toulouse (IAST), revised Oct 2019.
    14. Jiabin Wu, 2020. "Labelling, homophily and preference evolution," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 1-22, March.
    15. Carrasco, Jose A. & Harrison, Rodrigo & Villena, Mauricio G., 2022. "Strategic reciprocity and preference formation," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 368-381.
    16. Ingela Alger & Jörgen W. Weibull, 2013. "Homo Moralis—Preference Evolution Under Incomplete Information and Assortative Matching," Econometrica, Econometric Society, vol. 81(6), pages 2269-2302, November.
    17. Alger, Ingela & Weibull, Jörgen W., 2014. "Evolution leads to Kantian morality," TSE Working Papers 14-504, Toulouse School of Economics (TSE), revised Jun 2015.
    18. Guttman, Joel M., 2013. "On the evolution of conditional cooperation," European Journal of Political Economy, Elsevier, vol. 30(C), pages 15-34.
    19. Possajennikov, Alexandre, 2002. "Cooperative prisoners and aggressive chickens : evolution of strategies and preferences in 2x2 games," Papers 02-04, Sonderforschungsbreich 504.
    20. Daniel Friedman & Nirvikar Singh, 2004. "Vengefulness Evolves in Small Groups," Palgrave Macmillan Books, in: Steffen Huck (ed.), Advances in Understanding Strategic Behaviour, chapter 3, pages 28-54, Palgrave Macmillan.

    More about this item

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:xrs:sfbmaa:02-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carsten Schmidt (email available below). General contact details of provider: https://edirc.repec.org/data/sfmande.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.