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Interactive preferences

Author

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  • Nax, Heinrich H.
  • Murphy, Ryan O.
  • Ackermann, Kurt A.

Abstract

Game theory presumes that agents have unique preference orderings over outcomes that prescribe unique preference orderings over actions in response to other players’ actions, independent of other players’ preferences. This independence assumption is necessary to permit game-theoretic best response reasoning, but at odds with introspection, because preferences toward one another often dynamically depend on each other. In this note, we propose a model of interactive preferences. The model is validated with data from a laboratory experiment. The main finding of our study is that pro-sociality diminishes over the course of the interactions.

Suggested Citation

  • Nax, Heinrich H. & Murphy, Ryan O. & Ackermann, Kurt A., 2015. "Interactive preferences," Economics Letters, Elsevier, vol. 135(C), pages 133-136.
  • Handle: RePEc:eee:ecolet:v:135:y:2015:i:c:p:133-136 DOI: 10.1016/j.econlet.2015.08.008
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    References listed on IDEAS

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    5. Ryan O. Murphy & Kurt A. Ackerman & Michel J. J. Handgraaf, 2011. "Measuring social value orientation," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(8), pages 771-781, December.
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    Cited by:

    1. Da Silva, Sergio & De Faveri, Dinorá & Correa, Ana & Matsushita, Raul, 2017. "Social preferences, financial literacy and intertemporal choice," MPRA Paper 79535, University Library of Munich, Germany.

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