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When will payoff maximization survive? An indirect evolutionary analysis

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  • Werner G, th

    () (Max Planck Institute for Research into Economic Systems, Strategic Interaction Group, Kahlaische Stra, e 10, 07745 Jena)

  • Bezalel Peleg

    (Center for Rationality and Interactive Decision Theory, The Hebrew University of Jerusalem, Feldman Building, Givat Ram, 91904 Jerusalem, Israel)

Abstract

Survival of payoff maximization is the usual as if-justification for assuming rational economic agents. An indirect evolutionary analysis allows for stimuli which are not directly related to reproductive success although they affect behavior. One first determines the solution for all possible constellations of stimuli, and then the evolutionarily stable stimuli. Our general analysis confirms the special results of former studies that payoff maximization in case of commonly known stimuli requires either that own success does not depend on other's behavior or that other's behavior is not influenced by own stimuli. When stimuli are private information, one can derive similar necessary conditions.

Suggested Citation

  • Werner G, th & Bezalel Peleg, 2001. "When will payoff maximization survive? An indirect evolutionary analysis," Journal of Evolutionary Economics, Springer, vol. 11(5), pages 479-499.
  • Handle: RePEc:spr:joevec:v:11:y:2001:i:5:p:479-499
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    Cited by:

    1. Werner Güth & Loreto Erviti & Anthony Ziegelmeyer, 2011. "Asymmetric information without common priors: an indirect evolutionary analysis of quantity competition," Journal of Evolutionary Economics, Springer, pages 843-852.
    2. Heifetz, Aviad & Shannon, Chris & Spiegel, Yossi, 2007. "What to maximize if you must," Journal of Economic Theory, Elsevier, vol. 133(1), pages 31-57, March.
    3. Werner Güth & Loreto Erviti & Anthony Ziegelmeyer, 2011. "Asymmetric information without common priors: an indirect evolutionary analysis of quantity competition," Journal of Evolutionary Economics, Springer, pages 843-852.
    4. Heifetz, Aviad & Shannon, Chris & Spiegel, Yossi, 2002. "What to Maximize If You Must," Department of Economics, Working Paper Series qt0hj6631n, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    5. Werner Güth & Anthony ZIEGELMEYER & Loreto LLORENTE ERVITI, 2004. "Quantity Competition under Asymmetric Information without Common Priors: An Indirect Evolutionary Approach," Papers on Strategic Interaction 2003-32, Max Planck Institute of Economics, Strategic Interaction Group.
    6. Werner Güth & Stefan Napel, 2006. "Inequality Aversion in a Variety of Games - An Indirect Evolutionary Analysis," Economic Journal, Royal Economic Society, vol. 116(514), pages 1037-1056, October.
    7. Siegfried Berninghaus & Werner G³th & Hartmut Kliemt, 2003. "Reflections on Equilibrium: Ideal Rationality and Analytic Decomposition of Games," Homo Oeconomicus, Institute of SocioEconomics, pages 257-302.
    8. Weibull, Jörgen & Salomonsson, Marcus, 2005. "Natural selection and social preferences," SSE/EFI Working Paper Series in Economics and Finance 588, Stockholm School of Economics, revised 27 Sep 2005.
    9. Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2007. "The Dynamic Evolution of Preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(2), pages 251-286, August.
    10. Thomas Norman, 2004. "Dynamically Stable Preferences," Economics Series Working Papers 207, University of Oxford, Department of Economics.
    11. Werner Güth & Gerlinde Fellner & Ev Martin, 2006. "Satisficing or Optimizing? - An Experimental Study," Papers on Strategic Interaction 2006-11, Max Planck Institute of Economics, Strategic Interaction Group.
    12. Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2002. "What to Maximize if You Must," Levine's Working Paper Archive 506439000000000063, David K. Levine.
    13. Werne Güth & Hartmut Kliemt, 2009. "Evolutionstheorie und Ökonomik," Papers on Strategic Interaction 2009-13, Max Planck Institute of Economics, Strategic Interaction Group.
    14. Smith, Peter, 2004. "Reworking the Standard Model of Competitive Markets: The Role of Fuzzy Logic and Genetic Algorithms in Modelling Complex Non-Linear Economic System," General Discussion Papers 30569, University of Manchester, Institute for Development Policy and Management (IDPM).

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