2010
DOI: 10.1257/aer.100.4.1725
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Kinship, Incentives, and Evolution

Abstract: We analyze how family ties affect incentives, with focus on the strategic interaction between two mutually altruistic siblings. The siblings exert effort to produce output under uncertainty, and they may transfer output to each other. With equally altruistic siblings, their equilibrium effort is nonmonotonic in the common degree of altruism, and it depends on the harshness of the environment. We define a notion of local evolutionary stability of degrees of sibling altruism and show that this degree is lower th… Show more

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Cited by 129 publications
(87 citation statements)
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References 51 publications
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“…Existing literature shows that poor households often allocate resources towards unproductive activities for strategic reasons. These include defending property (Field, 2007;Goldstein and Udry, 2008), hiding income (Anderson and Baland, 2002;Jakiela and Ozier, 2015), free-riding on others' efforts (Alger and Weibull, 2010), and concealing assets (Ashraf, 2009). These incentives are particularly strong in West African households like those in our data, where income pooling is incomplete (Duflo and Udry, 2004).…”
Section: Conceptual Frameworkmentioning
confidence: 80%
“…Existing literature shows that poor households often allocate resources towards unproductive activities for strategic reasons. These include defending property (Field, 2007;Goldstein and Udry, 2008), hiding income (Anderson and Baland, 2002;Jakiela and Ozier, 2015), free-riding on others' efforts (Alger and Weibull, 2010), and concealing assets (Ashraf, 2009). These incentives are particularly strong in West African households like those in our data, where income pooling is incomplete (Duflo and Udry, 2004).…”
Section: Conceptual Frameworkmentioning
confidence: 80%
“…As discussed by Landes (1998), "the same value thwarted by "bad government" at home can find opportunity else where, as in the case of China." 3 This paper closely follows the works on indirect evolutionary approach including Güth and Yaari (1992), Güth (1995), Bester and Güth (1998), McNamara, Gasson and Houston (1999), Sethi and Somanathan (2001), Ok and Vega-Redondo (2001), Van Veelen (2006), Dekel, Ely and Yilankaya (2007), Spiegel (2007a, 2007b), Kuran and Sandholm (2008), Akçay et al (2009), Alger (2010) and Alger and Weibull (2010, 2013.…”
mentioning
confidence: 89%
“…Alger and Weibull (2010), for example, study the evolution of altruism with the traditional definition of fitness as physical survival. Heifetz et al (2007) offer a game-theoretic methodology with general ad-hoc fitness functions; their key assumption is that individuals may maximize a combination of the fitness function and an "individual disposition," with the latter being subject to evolutionary drift.…”
Section: Introductionmentioning
confidence: 99%