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  • 1. Alger, I.
    et al.
    Weibull, Jörgen W.
    KTH, School of Engineering Sciences (SCI), Mathematics (Dept.). Stockholm School of Economics, Sweden.
    Strategic behavior of moralists and altruists2017In: Games, ISSN 2073-4336, E-ISSN 2073-4336, Vol. 8, no 3, article id 38Article in journal (Refereed)
    Abstract [en]

    Does altruism and morality lead to socially better outcomes in strategic interactions than selfishness? We shed some light on this complex and non-trivial issue by examining a few canonical strategic interactions played by egoists, altruists and moralists. By altruists, we mean people who do not only care about their own material payoffs but also about those to others, and, by a moralist, we mean someone who cares about own material payoff and also about what would be his or her material payoff if others were to act like himself or herself. It turns out that both altruism and morality may improve or worsen equilibrium outcomes, depending on the nature of the game. Not surprisingly, both altruism and morality improve the outcomes in standard public goods games. In infinitely repeated games, however, both altruism and morality may diminish the prospects of cooperation, and to different degrees. In coordination games, morality can eliminate socially inefficient equilibria while altruism cannot.

  • 2. Andersson, O.
    et al.
    Argenton, C.
    Weibull, Jörgen W.
    KTH, School of Engineering Sciences (SCI), Mathematics (Dept.). Stockholm School of Economics, Sweden.
    Robustness to strategic uncertainty in the Nash demand game2018In: Mathematical Social Sciences, ISSN 0165-4896, E-ISSN 1879-3118, Vol. 91, p. 1-5Article in journal (Refereed)
    Abstract [en]

    This paper studies the role of strategic uncertainty in the Nash demand game. A player's uncertainty about another player's strategy is modeled as an atomless probability distribution over that player's strategy set. A strategy profile is robust to strategic uncertainty if it is the limit, as uncertainty vanishes, of some sequence of strategy profiles in which every player's strategy is optimal under his or her uncertainty about the others (Andersson et al., 2014). In the context of the Nash demand game, we show that robustness to symmetric (asymmetric) strategic uncertainty singles out the (generalized) Nash bargaining solution. The least uncertain party obtains the bigger share.

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