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Biology and the Arguments of Utility

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  • Luis Rayo
  • Arthur J. Robson

Abstract

Why did evolution not give us a utility function that is offspring alone" Why do we care intrinsically about other outcomes, such as food, and what determines the intensity of such preferences" A common view is that such other outcomes enhance fitness and the intensity of our preference for a given outcome is proportional to its contribution to fitness. We argue that this view is incomplete. Specifically, we show that in the presence of informational asymmetries, the evolutionarily most desirable preference for a given outcome is determined not only by the significance of the outcome, but by the Agent's degree of ignorance regarding its significance. Our model also sheds light on the phenomena of peer effects and prepared learning, whereby some peer attitudes are more influential than others.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Luis Rayo & Arthur J. Robson, 2013. "Biology and the Arguments of Utility," Levine's Working Paper Archive 786969000000000787, David K. Levine.
    • Handle: RePEc:cla:levarc:786969000000000787
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    File URL: http://www.dklevine.com/archive/refs4786969000000000787.pdf
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    References listed on IDEAS

    as
    1. Chesnais, Jean-Claude, 1992. "The Demographic Transition: Stages, Patterns, and Economic Implications," OUP Catalogue, Oxford University Press, number 9780198286592.
    2. Nick Netzer, 2009. "Evolution of Time Preferences and Attitudes toward Risk," American Economic Review, American Economic Association, vol. 99(3), pages 937-955, June.
    3. repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
    4. Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Why are children not the focus of our preferences?
      by Economic Logician in Economic Logic on 2013-05-27 18:56:00

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    Cited by:

    1. José F. Tudón M., 2019. "Perception, utility, and evolution," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 191-208, December.
    2. Adriani, Fabrizio & Sonderegger, Silvia, 2020. "Optimal similarity judgments in intertemporal choice (and beyond)," Journal of Economic Theory, Elsevier, vol. 190(C).
    3. Ricardo Alonso & Isabelle Brocas & Juan D. Carrillo, 2014. "Resource Allocation in the Brain," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 501-534.
    4. David Jiménez-Gómez, 2018. "The Evolution of Self-Control in the Brain," Working Papers. Serie AD 2018-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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