A common feature of the literature on the evolution of preferencesis that evolution favors nonmaterialistic preferences only if preferencetypes are observable at least to some degree. We argue that this resultis due to the assumption that in each state of the evolutionary dynam-ics some Bayesian...

Agents compete to solve a problem. Each agent knows own computational capacityas private information and simultaneously chooses either a risky or a safe problemsolving method. This paper analyzes the optimal prize schemes from the perspectiveof the prize designer who wishes to …nd a solution as...