The Canonical Type Space for Interdependent Preferences†

Abstract

We develop a model of interdependent preference types to capture situations where an agent’s preferences depend on the characteristics and personalities of others. We define a canonical type space and provide conditions under which an abstract type space is a component of the canonical type space. As an application, we develop a model of reciprocity in which agents reward the kindness of other agents. † This research was supported by grants SES9911177, SES0236882, SES9905178 and SES0214050 from the National Science Foundation.

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Cite this paper

@inproceedings{Gul2005TheCT, title={The Canonical Type Space for Interdependent Preferences†}, author={Faruk Gul and Wolfgang Pesendorfer}, year={2005} }