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On the Coevolution of Retribution and Trustworthiness: An (Indirect) Evolutionary and Experimental Analysis

  • Werner Güth
  • Hartmut Kliemt
  • M. Vittoria Levati
  • Georg von Wangenheim

Standard economic explanations of good conduct in trade rely almost exclusively on future-directed extrinsic motivations induced by material incentives. But intrinsic motives to behave trustworthily and to punish untrustworthiness do support trade. In our model, intrinsically motivated players are aware of their own type and observe the population share of other types. The material success of various types and their coevolution are analyzed, and it is checked whether the dynamics of the indirect evolutionary analysis are replicated in the laboratory.

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Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 163 (2007)
Issue (Month): 1 (March)
Pages: 143-157

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200703)163:1_143:otcora_2.0.tx_2-
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  1. Masclet, D. & Noussair, C. & Tucker, S. & Villeval, M.C., 2001. "Monetary and Non-monetary Punishment in the Voluntary Contributions Mechanism," Purdue University Economics Working Papers 1141, Purdue University, Department of Economics.
  2. Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
  3. David Kreps & Robert Wilson, 1999. "Reputation and Imperfect Information," Levine's Working Paper Archive 238, David K. Levine.
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  5. Selten, Reinhard, . "Features of Experimentally Observed Bounded Rationality," Discussion Paper Serie B 421, University of Bonn, Germany, revised Nov 1997.
  6. Jordi Brandts & Gary Charness, 2000. "Hot vs. Cold: Sequential Responses and Preference Stability in Experimental Games," Experimental Economics, Springer, vol. 2(3), pages 227-238, March.
  7. James Andreoni & William Harbaugh & Lise Vesterlund, 2003. "The Carrot or the Stick: Rewards, Punishments, and Cooperation," American Economic Review, American Economic Association, vol. 93(3), pages 893-902, June.
  8. Sandra Güth & Werner Güth & Hartmut Kliemt, 2002. "The Dynamics of Trustworthiness Among the Few," The Japanese Economic Review, Japanese Economic Association, vol. 53(4), pages 369-388.
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