An evolutionary theory of social justice: Choosing the right game
The Nash Demand Game (NDG) has been widely employed to model the emergence of moral norms such as property rights. We criticize this use because it neglects the important role played by incentives. Since in a NDG players are assumed to divide a windfall, there is no way to model the idea that expectations concerning the way in which the pie will be divided will influence the size of the pie itself. As a remedy, we propose to replace the NDG with an alternative game we dub Produce and Divide the Dollar (PAD). It is a simple Nash Demand Game, in which the pie to be divided is the result of an investment made by one of the two agents. In Andreozzi (2007) the evolutionary version of this game in which agents are allowed to have heterogeneous preferences is analyzed. Here we use these results to claim that the PAD offers a better paradigm for the evolutionary approach to moral norms than the simpler NDG.
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.
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.:
- Tore Ellingsen & Jack Robles, 2000.
"Does Evolution Solve the Hold-up Problem,"
Econometric Society World Congress 2000 Contributed Papers
1525, Econometric Society.
- Ellingsen, Tore & Robles, Jack, 2000. "Does Evolution Solve the Hold-up Problem?," SSE/EFI Working Paper Series in Economics and Finance 358, Stockholm School of Economics.
- Werner Güth & Kerstin Pull, 2002.
"Will Equity Evolve? - An Indirect Evolutionary Approach,"
Papers on Strategic Interaction
2002-22, Max Planck Institute of Economics, Strategic Interaction Group.
- Guth, Werner & Pull, Kerstin, 2004. "Will equity evolve?: an indirect evolutionary approach," European Journal of Political Economy, Elsevier, vol. 20(1), pages 273-282, March.
- Noldeke Georg & Samuelson Larry, 1993.
"An Evolutionary Analysis of Backward and Forward Induction,"
Games and Economic Behavior,
Elsevier, vol. 5(3), pages 425-454, July.
- Noeldecke,Georg & Samuelson,Larry, . "An evolutionary analysis of backward and forward induction," Discussion Paper Serie B 228, University of Bonn, Germany.
- G. Noldeke & L. Samuelson, 2010. "An Evolutionary Analysis of Backward and Forward Induction," Levine's Working Paper Archive 538, David K. Levine.
- Joseph E. Stiglitz, 1973.
"Incentives and Risk-Sharing in Sharecropping,"
Cowles Foundation Discussion Papers
353, Cowles Foundation for Research in Economics, Yale University.
- Binmore, Ken, et al, 1998. "Hard Bargains and Lost Opportunities," Economic Journal, Royal Economic Society, vol. 108(450), pages 1279-98, September.
- Fudenberg, Drew & Levine, David K, 1993.
Econometric Society, vol. 61(3), pages 523-45, May.
- Gantner, Anita & Guth, Werner & Konigstein, Manfred, 2001. "Equitable choices in bargaining games with joint production," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 209-225, October.
- Ellingsen, Tore & Johannesson, Magnus, 2005. "Sunk costs and fairness in incomplete information bargaining," Games and Economic Behavior, Elsevier, vol. 50(2), pages 155-177, February.
- Axtell, R. & Epstein, J.M. & Young, H.P., 2000. "The Emergence of Classes in a Multi-Agent Bargaining Model," Papers 9, Brookings Institution - Working Papers.
- Patrick Bolton & Mathias Dewatripont, 2005.
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262025760, June.
- Gintis, Herbert, 2007. "The evolution of private property," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 1-16, September.
- Alexander W. Cappelen & Astri Drange Hole & Erik Ø Sørensen & Bertil Tungodden, 2007.
"The Pluralism of Fairness Ideals: An Experimental Approach,"
American Economic Review,
American Economic Association, vol. 97(3), pages 818-827, June.
- Alexander W. Cappelen & Astri D. Hole & Erik Ø. Sørensen & Bertil Tungodden, 2005. "The Pluralism of Fairness Ideals: An Experimental Approach," CESifo Working Paper Series 1611, CESifo Group Munich.
- Shaun Hargreaves-Heap & Yanis Varoufakis, 2002. "Some Experimental Evidence On The Evolution Of Discrimination, Co--Operation And Perceptions Of Fairness," Economic Journal, Royal Economic Society, vol. 112(481), pages 679-703, July.
- Dawid, Herbert & MacLeod, W. Bentley, 2008. "Hold-up and the evolution of investment and bargaining norms," Games and Economic Behavior, Elsevier, vol. 62(1), pages 26-52, January.
- Binmore, Ken & Samuelson, Larry & Young, Peyton, 2003. "Equilibrium selection in bargaining models," Games and Economic Behavior, Elsevier, vol. 45(2), pages 296-328, November.
- Troger, Thomas, 2002. "Why Sunk Costs Matter for Bargaining Outcomes: An Evolutionary Approach," Journal of Economic Theory, Elsevier, vol. 102(2), pages 375-402, February.
- Luporini, Annalisa & Parigi, Bruno, 1996. "Multi-Task Sharecropping Contracts: The Italian Mezzadria," Economica, London School of Economics and Political Science, vol. 63(251), pages 445-57, August.
- Young H. P., 1993. "An Evolutionary Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 59(1), pages 145-168, February.
- H. Peyton Young & Mary A. Burke, 2001. "Competition and Custom in Economic Contracts: A Case Study of Illinois Agriculture," American Economic Review, American Economic Association, vol. 91(3), pages 559-573, June.
When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:26:y:2010:i:3:p:320-329. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.