Journal of Economic Theory and Econometrics: Journal of the Korean Econometric Society
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Journal of Economic Theory and Econometrics
JETEM/계량경제학보/計量經濟學報/JKES
Journal of the Korean Econometric Society

Evolution of Preferences in One-shot Prisoner's Dilemma

Vol.18, No.4, December , 1–29



  •   (Department of Public Administration, Korea University)

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Abstract  

Can cooperation evolve in one-shot prisoner's dilemma? Utilizing an indirect evolutionary framework that separates objective payoffs and utilities, I show that preferences that are consistent with conditional cooperation in one-shot prisoner's dilemma can evolve along with strictly self-interested preferences. The ability to detect others' preference types is critical for the evolution of reciprocal preferences. In the evolutionary equilibria, both the strictly self-interested preferences and reciprocal preferences coexist and both cooperation and defection are observed. These results complement the folk theorem and the standard evolutionary models by providing an alternative evolutionary logic of cooperation.


Keywords
   Prisoner's Dilemma, Evolution, Cooperation, Reciprocity

JEL classification codes
   C72, C79
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