In standard rational choice modelling decisions are made according to given information and preferences. In the model presented here the 'information technology' of individual decision makers as well as their preferences evolve in a dynamic process. In this process decisions are made rationally by players who differ in their informational as well as in… (More)
Can a court system conceivably control opportunistic behavior if judges are selected from the same population as ordinary citizens and thus are no better than "the rest of us"? This paper provides a new and, as we claim, quite profound "rational choice" answer to that unsolved riddle. Adopting an indirect evolutionary approach with endogenous preference… (More)
(82 words) 1 Unanimous voting as the fundamental procedural source of political legitimacy grants veto power to each individual. We present an axiomatic characterization of a class of bidding processes to spell out the underlying egalitarian values for collective projects of a " productive state ". At heart of such procedures is the determination of… (More)
Werner Güth's ultimatum game played a key role in the development of multiple research areas, several of which are highlighted.
(94<100 words) Economic intuitions concerning rational behaviour in interactive social situations are shaped by idealized models which are regarded as " approximately true ". But ideal models cannot be meaningfully deemed approximately true unless asymptotically convergent processes imply them as limit cases. We illustrate by various examples – infinitely… (More)
The main results of our indirect evolutionary approach to trust in large interactions suggest that trustworthiness must be detectable if good conduct in trust-relationships is to survive. According to theoretical reasoning there is a niche then for an organization offering a (possibly) costly service of keeping track of the conduct of participants on the… (More)