Carrot or Stick? The Evolution of Reciprocal Preferences in a Haystack Model
Herold, Florian. 2012. "Carrot or Stick? The Evolution of Reciprocal Preferences in a Haystack Model."
American Economic Review,
We study the evolution of both characteristics of reciprocity: the
willingness to reward and the willingness to punish. First, both
preferences for rewarding and preferences for punishing can survive
provided that individuals interact within separate groups. Second, rewarders survive only in coexistence with self-interested preferences, but punishers either vanish or dominate the population entirely. Third, the evolution of preferences for rewarding and the evolution of preferences for punishing influence each other decisively. Rewarders can invade a population of self-interested players.
The existence of rewarders enhances the evolutionary success of punishers, who then crowd out all other preferences. (JEL C71, C72, C73, D64, K42)
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Herold, Florian (U Bamberg)
C71: Cooperative Games
C72: Noncooperative Games
C73: Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
K42: Illegal Behavior and the Enforcement of Law