Preferences for reciprocity of the Falk-Fischbacher type are applied to a game of trust. After deriving the reciprocity equilibrium, the evolution of preferences is analysed showing that a medium level of reciprocity is evolutionary stable. If players exhibit different inclinations regarding...

We introduce a generalized theoretical approach to study imitation models and subject themodels to rigorous experimental testing. In our theoretical analysis we find that the differentpredictions of previous imitation models are due to different informational assumptions, notto different...

Economic agents are not always rational or farsighted and can make decisions according to simple behavioral rules that vary according to situation and can be studied using the tools of evolutionary game theory. Furthermore, such behavioral rules are themselves subject to evolutionary forces....

A population of agents recurrently plays a two-strategy population game. When an agent receives a revision opportunity, he chooses a new strategy using a noisy best response rule that satisfies mild regularity conditions; best response with mutations, logit choice, and probit choice are all...

Purpose The relevance of present consumption bias on personal finance has been confirmed in several studies and has important theoretical and practical implications. It has important, measurable implications when analyzing commitment or self-control, adherence to healthy habits (e.g. exercising...

There are many instances in nature of animals having a form of property rights, a respect for mine and thine. This paper addresses the question of how a norm of respecting property rights can emerge within a group of individuals without access to third party enforcement. Building upon work in...

Several studies indicate that humans are overconfident about their own (relative) abilities. The paper proposes a notion of pragmatic beliefs, and shows through an example that this concept can shed light on why overconfidence emerges. Through the example, we also shed light on the idea that...