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Reciprocity, Altruism, Solidarity: A Dynamic Model

  • Friedel Bolle
  • Alexander Kritikos

    ()

Reciprocity is a decisive behavioural rule resulting in successful co-operation or deterrence. In this paper, a dynamic model is proposed, where reciprocity is described by changes in altruistic (or malevolent) ties. Multiple steady states may exist in one of which there may be general cooperation (solidarity) and the other being one of universal malice (war of each individual against all other individuals). We apply our theory to a number of examples, illustrating that the agents’ initial preferences determine whether a steady state of solidarity, selfishness or malice will emerge. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s11238-006-7192-6
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Article provided by Springer in its journal Theory and Decision.

Volume (Year): 60 (2006)
Issue (Month): 4 (06)
Pages: 371-394

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Handle: RePEc:kap:theord:v:60:y:2006:i:4:p:371-394
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100341

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  1. Fehr, Ernst & Schmidt, Klaus M., . "A theory of fairness, competition, and cooperation," Chapters in Economics, University of Munich, Department of Economics.
  2. Friedel Bolle, 1998. "Rewarding Trust: An Experimental Study," Theory and Decision, Springer, vol. 45(1), pages 83-98, August.
  3. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences With Simple Tests," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 817-869, August.
  4. Ernst Fehr & Urs Fischbacher & Bernhard von Rosenbladt & Jürgen Schupp & Gert G. Wagner, 2002. "A Nation-Wide Laboratory: Examining Trust and Trustworthiness by Integrating Behavioral Experiments into Representative Surveys," Discussion Papers of DIW Berlin 319, DIW Berlin, German Institute for Economic Research.
  5. Clark, Kenneth & Sefton, Martin, 2001. "The Sequential Prisoner's Dilemma: Evidence on Reciprocation," Economic Journal, Royal Economic Society, vol. 111(468), pages 51-68, January.
  6. Bester, H. & Güth, W., 1994. "Is altruism evolutionarily stable ?," Discussion Paper 1994-103, Tilburg University, Center for Economic Research.
  7. Andreoni, James, 1995. "Warm-Glow versus Cold-Prickle: The Effects of Positive and Negative Framing on Cooperation in Experiments," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 1-21, February.
  8. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
  9. McCabe, Kevin A. & Rigdon, Mary L. & Smith, Vernon L., 2003. "Positive reciprocity and intentions in trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 267-275, October.
  10. Georg Kirchsteiger & Martin Dufwenberg, 2004. "A theory of sequential reciprocity," ULB Institutional Repository 2013/5899, ULB -- Universite Libre de Bruxelles.
  11. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1, August.
  12. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
  13. Bolle, Friedel & Ockenfels, Peter, 1990. "Prisoners' Dilemma as a game with incomplete information," Journal of Economic Psychology, Elsevier, vol. 11(1), pages 69-84, March.
  14. repec:att:wimass:9102 is not listed on IDEAS
  15. Cooper, R. & DeJong, D.W. & Ross, T.W., 1992. "Cooperation without Reputation: Experimental Evidence from Prisoner's Dilemma Games," Papers 36, Boston University - Industry Studies Programme.
  16. James Andreoni & John H Miller, 1997. "Rational Cooperation in the finitely repeated prisoner's dilemma: experimental evidence," Levine's Working Paper Archive 670, David K. Levine.
  17. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  18. Antonides, Gerrit, 1994. "Mental accounting in a sequential Prisoner's Dilemma game," Journal of Economic Psychology, Elsevier, vol. 15(2), pages 351-374, June.
  19. Bolle, Friedel & Kritikos, Alexander S., 2004. "Altruistic Behavior Under Incomplete Information," Discussion Papers 229, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  20. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
  21. Bolle, Friedel, 2000. "Is altruism evolutionarily stable? And envy and malevolence?: Remarks on Bester and Guth," Journal of Economic Behavior & Organization, Elsevier, vol. 42(1), pages 131-133, May.
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