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2006
DOI: 10.1007/s00199-006-0121-7
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The Dynamic Evolution of Preferences

Abstract: This paper develops a general methodology for characterizing the dynamic evolution of preferences in a wide class of strategic interactions. We give simple conditions characterizing the limiting distribution of preferences in general games, and apply our results to study the evolutionary emergence of overconfidence and interdependent preferences. We also show that this methodology can be adapted to cases where preferences are only imperfectly observed.

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Cited by 116 publications
(66 citation statements)
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References 58 publications
(39 reference statements)
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“…Our model is also closely related to the "indirect-evolution approach" in economics (30,31). This approach ascribes preference functions to agents and models the evolution of the preferences according to the Nash equilibria they produce in a noncooperative game.…”
Section: Discussionmentioning
confidence: 99%
“…Our model is also closely related to the "indirect-evolution approach" in economics (30,31). This approach ascribes preference functions to agents and models the evolution of the preferences according to the Nash equilibria they produce in a noncooperative game.…”
Section: Discussionmentioning
confidence: 99%
“…The most closely related models in biology are models of the continuous iterated prisoner's dilemma (CIPD; McNamara et al 1999;Wahl and Nowak 1999;André and Day 2007) that look at the evolution of linear-response rules; given a behavioral mechanism of linear responses, the response slope is analogous to r. In economics, the most related field is that of "indirect evolution" (Güth 1995;Dekel et al 2007;Heifetz et al 2007a;Alger and Weibull 2010), which allows individuals to choose actions based on individual preferences and studies the evolution of those preferences. This work has focused mostly on the informational constraints required for players to act in a way that does not maximize their immediate self-interest.…”
Section: Indirect Genetic Effects and Behavioral Responses In Structumentioning
confidence: 99%
“…The so-called indirect evolutionary approach (see, e.g., Güth andPeleg, 2001, andHeifetz, Shannon, andSpiegel, 2007) concerns the evolutionary stability of preferences under random matching, whereas Bergstrom (1995) analyzes the evolutionary stability of strategies when the players are siblings, so that their "strategy types"are correlated in a speci…c way.…”
Section: Preference Evolution Vs Strategy Evolutionmentioning
confidence: 99%