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Elimination of non-individualistic preferences in large population aggregative games

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  • Lahkar, Ratul

Abstract

We study evolution of preferences in large population aggregative games. In such games, all agents in society interact with each other. The material payoff or fitness of agents is entirely individualistic. Subjective payoffs, which represent preferences, depend upon a non-individualistic component which is adjusted through a type-dependent preference parameter. Using the indirect evolutionary approach, we show that the individualistic type enjoys fitness dominance under any type distribution in such games. Hence, under a class of evolutionary dynamics that satisfy monotone percentage growth, all non-individualistic types are eliminated. We apply this analysis to two classes of non-individualistic preferences-altruistic and Kantian. Altruistic preferences put a positive weight on the externality imposed on society while Kantian preferences incorporate the Kantian categorical imperative. In two important economic models, the tragedy of the commons and the public goods game, we show that both these classes of preferences are eliminated.

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  • Lahkar, Ratul, 2019. "Elimination of non-individualistic preferences in large population aggregative games," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 150-165.
  • Handle: RePEc:eee:mateco:v:84:y:2019:i:c:p:150-165
    DOI: 10.1016/j.jmateco.2019.07.013
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    Cited by:

    1. Sarvesh Bandhu & Ratul Lahkar, 2022. "A Large Population Approach to Implementing Efficiency with Minimum Inequality," Working Papers 76, Ashoka University, Department of Economics.
    2. Sarvesh Bandhu & Ratul Lahkar, 2021. "Implementation in Large Population Games with Multiple Equilibria," Working Papers 62, Ashoka University, Department of Economics.
    3. Sarvesh Bandhu & Ratul Lahkar, 2023. "Evolutionary robustness of dominant strategy implementation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(2), pages 685-721, August.
    4. Lahkar, Ratul & Mukherjee, Sayan & Roy, Souvik, 2023. "The logit dynamic in supermodular games with a continuum of strategies: A deterministic approximation approach," Games and Economic Behavior, Elsevier, vol. 139(C), pages 133-160.
    5. Ratul Lahkar & Saptarshi Mukherjee, 2022. "Optimal Large Population Tullock Contests," Working Papers 82, Ashoka University, Department of Economics.
    6. Bandhu, Sarvesh & Lahkar, Ratul, 2023. "Survival of altruistic preferences in a large population public goods game," Economics Letters, Elsevier, vol. 226(C).
    7. Luis C. Corchón, 2021. "Aggregative games," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 49-71, March.
    8. Ratul Lahkar & Rezina Sultana, 2023. "Rent dissipation in large population Tullock contests," Public Choice, Springer, vol. 197(1), pages 253-282, October.

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