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Reciprocity - an indirect evolutionary analysis

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Author Info
Berninghaus, Siegfried K. () (Universität Karlsruhe)
Korth, Christian () (Christian Korth)
Napel, Stefan () (Department of Economics, Boston University)

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Abstract

This paper investigates strategic interaction between rational agents whose preferences evolve over time. Players face a pecuniary �game of life� comprising the ultimatum game and the dictator game. Utility may but need not be attached to the reciprocation of fair and unfair play by the opponent and equitable payoff distributions as proposed by Falk and Fischbacher (2001). Evolutionary fitness is determined solely by material success � regardless of the motives for its achievement. Agents cannot explicitly condition the social component of their preferences on whether they face the ultimatum or dictator game. Under these conditions, agents develop a strong preference for reciprocation but little interest in an equitable distribution as such. This corresponds to equitable ultimatum offers but full surplus appropriation by dictators. Adding an exogenous constraint on the possible divergence between preference for reciprocation and for an equitable distribution either makes ultimatum divisions asymmetric or dictators become generous depending on the relative frequency of ultimatum and dictator interaction.

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Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 03-32.

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Length: 26 pages
Date of creation: 30 Oct 2003
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Handle: RePEc:xrs:sfbmaa:03-32

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  2. Sethi, Rajiv & Somanathan, E., 2001. "Preference Evolution and Reciprocity," Journal of Economic Theory, Elsevier, vol. 97(2), pages 273-297, April. [Downloadable!] (restricted)
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  3. Ernst FEHR & Simon GÄCHTER & Georg KIRCHSTEIGER, 1994. "Reciprocal Fairness and Noncompensating Wage Differentials," Vienna Economics Papers vie9401, University of Vienna, Department of Economics.
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  6. Harrison, Glenn W & Hirshleifer, Jack, 1989. "An Experimental Evaluation of Weakest Link/Best Shot Models of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 201-25, February. [Downloadable!] (restricted)
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  7. Margin Dufwenberg & Georg Kirchsteiger, 2001. "A Theory of Sequential Reciprocity," Levine's Working Paper Archive 563824000000000090, David K. Levine. [Downloadable!]
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  11. Kockesen, Levent & Ok, Efe A. & Sethi, Rajiv, 2000. "Evolution of Interdependent Preferences in Aggregative Games," Games and Economic Behavior, Elsevier, vol. 31(2), pages 303-310, May. [Downloadable!] (restricted)
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  12. Falk, Armin & Fischbacher, Urs, 2001. "A Theory of Reciprocity," CEPR Discussion Papers 3014, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. J. Oechssler & F. Riedel, . "Evolutionary Dynamics on Infinite Strategy Spaces," Sonderforschungsbereich 373 1998-68, Humboldt Universitaet Berlin.
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  14. Prasnikar, Vesna & Roth, Alvin E, 1992. "Considerations of Fairness and Strategy: Experimental Data from Sequential Games," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 865-88, August. [Downloadable!] (restricted)
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  16. Dekel, Eddie & Ely, Jeffrey & Yilankaya, Okan, 2004. "Evolution of Preferences," Micro Theory Working Papers dekel-04-08-13-01-21-07, Microeconomics.ca Website, revised 09 Jun 2006. [Downloadable!]
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  17. Falk, Armin & Kosfeld, Michael, 2003. "It's All About Connections: Evidence on Network Formation," CEPR Discussion Papers 3970, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  18. Samuelson, Larry, 2001. "Introduction to the Evolution of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 225-230, April. [Downloadable!] (restricted)
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  20. Fehr, Ernst & Gachter, Simon, 1998. "Reciprocity and economics: The economic implications of Homo Reciprocans1," European Economic Review, Elsevier, vol. 42(3-5), pages 845-859, May. [Downloadable!] (restricted)
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  25. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)
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  27. Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March. [Downloadable!] (restricted)
  28. Cameron, Lisa A, 1999. "Raising the Stakes in the Ultimatum Game: Experimental Evidence from Indonesia," Economic Inquiry, Oxford University Press, vol. 37(1), pages 47-59, January.
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  29. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March. [Downloadable!] (restricted)
  30. Gachter, Simon & Falk, Armin, 2002. " Reputation and Reciprocity: Consequences for the Labour Relation," Scandinavian Journal of Economics, Blackwell Publishing, vol. 104(1), pages 1-26. [Downloadable!] (restricted)
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