IDEAS home Printed from https://ideas.repec.org/p/dav/wpaper/19-02.html
   My bibliography  Save this paper

We, You, I, and the Other

Author

Listed:
  • Shyam Gouri Suresh
  • Paul Studtmann

Abstract

To capture humans’ moral sense game theorists have introduced the Kantian counterfactual. The Nash counterfactual considers the question: what would happen were I to change my behavior on the assumption that no one else does. By contrast, the Kantian counterfactual considers the question: what would happen were everyone to deviate from some behavior? In this paper, we present a model that endogenizes the decision to engage in this type of Kantian reasoning. Our model thus differs from recent approaches to Kantian reasoning in the literature that appeal to exogenous features to explain the level of moral behavior. We show that our model allows one to identify playing a Kantian strategy with playing what we call a ‘we-strategy’, an identification that is made plausible by the inclusion of psychic payoffs. We go on to prove that agents playing our model optimally achieve weakly Pareto socially optimal outcomes. We end by discussing a theorem that places a constraint on agents who achieve positive expected material payoffs and in so doing explains patterns of giving that can be found in nature.

Suggested Citation

  • Shyam Gouri Suresh & Paul Studtmann, 2019. "We, You, I, and the Other," Working Papers 19-02, Davidson College, Department of Economics.
  • Handle: RePEc:dav:wpaper:19-02
    as

    Download full text from publisher

    File URL: ftp://econrepec.davidson.edu/wpaper/We_You_I_Other.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Kantian Morality; Game Theory; Deontology;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dav:wpaper:19-02. 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: . General contact details of provider: https://edirc.repec.org/data/dedavus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dave Martin (email available below). General contact details of provider: https://edirc.repec.org/data/dedavus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.