Evolutionary stability of discrimination under observability
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rajiv Sethi & E. Somanathan, 1999.
"Preference Evolution and Reciprocity,"
Game Theory and Information
9903001, EconWPA, revised 12 Mar 1999.
- Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2007.
"The Dynamic Evolution of Preferences,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(2), pages 251-286, August.
- Binmore, Kenneth G. & Samuelson, Larry, 1992. "Evolutionary stability in repeated games played by finite automata," Journal of Economic Theory, Elsevier, vol. 57(2), pages 278-305, August.
- Jeffrey C. Ely & Okan Yilankaya, 1997.
"Nash Equilibrium and the Evolution of Preferences,"
1191, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ken Binmore & Larry Samuelson, 1999. "Evolutionary Drift and Equilibrium Selection," Review of Economic Studies, Oxford University Press, vol. 66(2), pages 363-393.
- Banerjee, A. & Weibull, J.W., 1993.
"Evolutionary Selection with Discriminating Players,"
Harvard Institute of Economic Research Working Papers
1637, Harvard - Institute of Economic Research.
- Banerjee, Abhijit & Weibull, Jörgen W., 1993. "Evolutionary Selection with Discriminating Players," Working Paper Series 375, Research Institute of Industrial Economics.
- Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2001.
"On the Nature of Fair Behaviour,"
CEPR Discussion Papers
2984, C.E.P.R. Discussion Papers.
- Fudenberg, Drew & Maskin, Eric, 1990.
"Evolution and Cooperation in Noisy Repeated Games,"
American Economic Review,
American Economic Association, vol. 80(2), pages 274-279, May.
- Eddie Dekel & Jeffrey C. Ely & Okan Yilankaya, 2007. "Evolution of Preferences -super-1," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 685-704.
- A. J. Robson, 2010. "Efficiency in Evolutionary Games: Darwin, Nash and the Secret Handshake," Levine's Working Paper Archive 540, David K. Levine.
- 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.
- Kockesen, L. & Ok, E.A. & Sethi, R., 1998. "Evolution of Interdependent Preferences in Aggregative Games," Working Papers 98-19, C.V. Starr Center for Applied Economics, New York University.
- Banerjee, Abhijit & Weibull, Jorgen W., 2000.
"Neutrally Stable Outcomes in Cheap-Talk Coordination Games,"
Games and Economic Behavior,
Elsevier, vol. 32(1), pages 1-24, July.
- Abhijit Banerjee & Jörgen W. Weibull, "undated". "Neutrally Stable Outcomes in Cheap Talk Coordination Games," ELSE working papers 012, ESRC Centre on Economics Learning and Social Evolution.
- Gary Charness & David I. Levine, 2007. "Intention and Stochastic Outcomes: An Experimental study," Economic Journal, Royal Economic Society, vol. 117(522), pages 1051-1072, 07.
- 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.
- 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.
- Wolfgang Pesendorfer & Faruk Gul, 2007. "The Canonical Space for Behavioral Types," Levine's Bibliography 843644000000000345, UCLA Department of Economics.
- Bester, H. & Güth, W., 1994.
"Is altruism evolutionarily stable ?,"
1994-103, Tilburg University, Center for Economic Research.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:67:y:2009:i:2:p:542-551. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.