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The evolution of morals under indirect reciprocity

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  • Gaudeul, Alexia
  • Keser, Claudia
  • Müller, Stephan

Abstract

We theoretically and experimentally study the evolution of strategies reflecting different moral judgments under indirect reciprocity. We fully characterize the asymptotically stable sets of rest points. In all cooperative rest points multiple strategies coexist. This offers an explanation for the heterogeneity in moral judgments among humans. The behavior prescribed by the predicted strategies can rationalize the design of real-life reputation systems, which are set up to resolve problems of moral hazard. In our laboratory experiment, we find that more than 75% of participants play strategies that belong to the predicted set of strategies.

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  • Gaudeul, Alexia & Keser, Claudia & Müller, Stephan, 2021. "The evolution of morals under indirect reciprocity," Games and Economic Behavior, Elsevier, vol. 126(C), pages 251-277.
    • Handle: RePEc:eee:gamebe:v:126:y:2021:i:c:p:251-277
    DOI: 10.1016/j.geb.2021.01.004
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    More about this item

    Keywords

    Indirect reciprocity; Cooperation; Evolution; Experiment;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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