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Evolutionary stability of discrimination under observability

  • Herold, Florian
  • Kuzmics, Christoph

We study the evolution of preferences under perfect and almost perfect observability in symmetric 2-player games. We demonstrate that if nature can choose from a sufficiently general preference space, which includes preferences over outcomes that may depend on the opponent's preference-type, then, in most games, only discriminating preferences (treating different types of opponents differently in the same situation) can be evolutionary stable and some discriminating types are stable in a very strong sense in all games. We use these discriminating types to show that any symmetric outcome which gives players more than their minmax value in material payoffs (fitness) can be seen as equilibrium play of a player population with such strongly stable preferences.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 67 (2009)
Issue (Month): 2 (November)
Pages: 542-551

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Handle: RePEc:eee:gamebe:v:67:y:2009:i:2:p:542-551
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  1. Binmore, Ken & Samuelson, Larry, 1999. "Evolutionary Drift and Equilibrium Selection," Review of Economic Studies, Wiley Blackwell, vol. 66(2), pages 363-93, April.
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  3. 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.
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