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Coevolution of Deception and Preferences: Darwin and Nash Meet Machiavelli

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  • Heller, Yuval
  • Mohlin, Erik

Abstract

We develop a framework in which individuals preferences co-evolve with their abilities to deceive others regarding their preferences and intentions. We show that a pure outcome is stable, essentially if and only if it is an efficient Nash equilibrium. All individuals have the same deception ability in such a stable state. In contrast, there are non-pure outcomes in which non-Nash outcomes are played, and different deception abilities co-exist. We extend our model to study preferences that depend also on the opponent's type.

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  • Heller, Yuval & Mohlin, Erik, 2014. "Coevolution of Deception and Preferences: Darwin and Nash Meet Machiavelli," MPRA Paper 58255, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:58255
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    Cited by:

    1. Yuval Heller & Eyal Winter, 2020. "Biased-Belief Equilibrium," American Economic Journal: Microeconomics, American Economic Association, vol. 12(2), pages 1-40, May.
    2. Yuval Heller & Erik Mohlin, 2018. "Observations on Cooperation," Review of Economic Studies, Oxford University Press, vol. 85(4), pages 2253-2282.
    3. Pardo, Oliver, 2017. "A note on “Evolution of Preferences”," Journal of Mathematical Economics, Elsevier, vol. 71(C), pages 129-134.
    4. Yuval Heller & Erik Mohlin, 2020. "Observations on Cooperation," Papers 2006.15310, arXiv.org.
    5. Florian Gauer & Christoph Kuzmics, 2020. "Cognitive Empathy In Conflict Situations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1659-1678, November.
    6. Heller, Yuval & Mohlin, Erik, 2015. "Stable Observable Behavior," MPRA Paper 63013, University Library of Munich, Germany.
    7. Jonathan Newton, 2018. "Evolutionary Game Theory: A Renaissance," Games, MDPI, Open Access Journal, vol. 9(2), pages 1-67, May.

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    Keywords

    Evolution of Preferences; Indirect Evolutionary Approach; Theory of Mind; Depth of Reasoning; Deception.;
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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