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Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 01-3:
Reciprocity, Materialism and Welfare: An Evolutionary Model

Anders Poulsen ()

Abstract: This paper analyses preference evolution in a bargaining situation. We show

that preferences for reciprocity, that sustain a conflict-free outcome, are viable

if players have enough information about opponents’ preferences. However, depending

on the initial starting point, preference evolution can in general both

enhance or reduce subjective and material welfare, relative to the situation where

all players have the usual materialistic preferences.

Keywords: Preference evolution; Reciprocity; Altruism; Materialism; Subjective and material eciency; Bargaining; Indirect evolutionary approach; (follow links to similar papers)

18 pages, March 19, 2001

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