Coevolution of deception and preferences: Darwin and Nash meet Machiavelli

Forskningsoutput: TidskriftsbidragArtikel i vetenskaplig tidskrift

Abstract

We develop a framework in which individuals' preferences coevolve with their abilities to deceive others about their preferences and intentions. Specifically, individuals are characterised by (i) a level of cognitive sophistication and (ii) a subjective utility function. Increased cognition is costly, but higher-level individuals have the advantage of being able to deceive lower-level opponents about their preferences and intentions in some of the matches. In the remaining matches, the individuals observe each other's preferences. Our main result shows that, essentially, only efficient outcomes can be stable. Moreover, under additional mild assumptions, we show that an efficient outcome is stable if and only if the gain from unilateral deviation is smaller than the effective cost of deception in the environment.

Detaljer

Författare
Enheter & grupper
Externa organisationer
  • Bar-Ilan University
Forskningsområden

Ämnesklassifikation (UKÄ) – OBLIGATORISK

  • Nationalekonomi

Nyckelord

Originalspråkengelska
Sidor (från-till)223-247
TidskriftGames and Economic Behavior
Volym113
Tidigt onlinedatum2018 sep 27
StatusPublished - 2019
PublikationskategoriForskning
Peer review utfördJa