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  • 1
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    Environment, development and sustainability 2 (2000), S. 305-322 
    ISSN: 1573-2975
    Keywords: co-operation ; experimental economics ; experiments ; field experiments ; collective action ; common-pool resources ; Colombia ; reciprocity ; trust ; reputation ; regulation ; crowding-out ; institutions ; game theory
    Source: Springer Online Journal Archives 1860-2000
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Sociology
    Notes: Abstract The use of experimental settings to observe human behaviour in a controlled environment of incentives, rules and institutions, has been widely used by the behavioural sciences for sometime now, particularly by psychology and economics. In most cases the subjects are college students recruited for one to two hour decision making exercises in which, depending on their choices, they earn cash averaging US$ 20. In such exercises players face a set of feasible actions, rules and incentives (payoffs) involving different forms of social exchange with other people, and that in most cases involve some kind of externalities with incomplete contracts, such as in the case of common-pool resources situations. Depending on the ecological and institutional settings, the resource users face a set of feasible levels of extraction, a set of rules regarding the control or monitoring of individual use, and sometimes ways of imposing material or non-material costs or rewards to those breaking or following the rules. We brought the experimental lab to the field and invited about two hundred users of natural resources in three Colombian rural villages to participate in such decision making exercises and through these and other research instruments we learned about the ways they solve - or fail to - tragedies of the commons with different social institutions. Further, bringing the lab to the field allowed us to explore some of the limitations of existing models about human behaviour and its consequences for designing policies for conserving ecosystems and improving social welfare.
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  • 2
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    Journal of population economics 12 (1999), S. 343-361 
    ISSN: 1432-1475
    Keywords: JEL classification: I30 ; I38 ; C25 ; J22 ; Key words: Welfare measurement ; labour supply ; lone parents
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract. This paper is concerned with the measurement of individual welfare in labour supply models which allow for the impact of income taxation and income support schemes on labour supply decisions. The paper is motivated by the concern over the need to have measures which can be interpreted easily, which can be compared with net income, and which can be meaningfully aggregated. To illustrate the issues we use estimates of a discrete choice model of labour supply for United Kingdom lone mothers to compute alternative welfare measures which might be considered as having intuitive appeal to policy-makers. We compute welfare change based on these measures arising from a recent reform of the child support payments system.
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    Journal of population economics 11 (1998), S. 161-183 
    ISSN: 1432-1475
    Keywords: JEL classification: D13 ; J22 ; J13 ; Key words: Sex division of labour ; fertility ; fathers ; gender relations ; gender equity ; time budgets
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract. This paper is an argument about gender relations. It takes the entwined themes of men‘s interests in parenthood, the sex division of labour and its evolution, policy for gender equity and policy to support the level of social reproduction. The emphasis on women‘s employment as a determinant of low fertility has to be supplemented by an examination of the assumption that only women‘s time use is affected by child-rearing. Many forces tend to concentrate fathers‘ involvement on breadwinning, but they are not immutable and are already changing. It should be in the interests of promoting social reproduction, as well as gender equity, for policy interventions to facilitate complementarities in parenting and in its combination with paid work. Descriptive evidence about the paid and unpaid work of couples and parents is presented, largely secondary material from the UK.
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    Journal of population economics 10 (1997), S. 237-250 
    ISSN: 1432-1475
    Keywords: JEL classification: D10 ; J22 ; C31 ; Key words: Family utility ; welfare ; joint labor supply
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract. This paper investigates the commonly asserted proposition that long term economic changes have put the family in a financial bind. Structural parameters of a family utility model are obtained by estimating simultaneous labor supply functions for a two-earner household. We find evidence indicating that the average 1990‘s two-earner family would prefer to receive the 1980‘s real wage package (were it available) instead of the real wage package it actually faces. The degree to which the 1990‘s family is worse off (in terms of the changes in the real wage package) is roughly equivalent to an hour of leisure per week.
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  • 5
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    Theory and decision 42 (1997), S. 53-80 
    ISSN: 1573-7187
    Keywords: Undecidability ; Prisoner's Dilemma ; cellular automata ; game theory ; decision theory ; computability
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract In the spatialized Prisoner's Dilemma, players compete against their immediate neighbors and adopt a neighbor's strategy should it prove locally superior. Fields of strategies evolve in the manner of cellular automata (Nowak and May, 1993; Mar and St. Denis, 1993a,b; Grim 1995, 1996). Often a question arises as to what the eventual outcome of an initial spatial configuration of strategies will be: Will a single strategy prove triumphant in the sense of progressively conquering more and more territory without opposition, or will an equilibrium of some small number of strategies emerge? Here it is shown, for finite configurations of Prisoner's Dilemma strategies embedded in a given infinite background, that such questions are formally undecidable: there is no algorithm or effective procedure which, given a specification of a finite configuration, will in all cases tell us whether that configuration will or will not result in progressive conquest by a single strategy when embedded in the given field. The proof introduces undecidability into decision theory in three steps: by (1) outlining a class of abstract machines with familiar undecidability results, by (2) modelling these machines within a particular family of cellular automata, carrying over undecidability results for these, and finally by (3) showing that spatial configurations of Prisoner's Dilemma strategies will take the form of such cellular automata.
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  • 6
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    Theory and decision 43 (1997), S. 219-239 
    ISSN: 1573-7187
    Keywords: Social contract ; maximin principle ; game theory ; Arrow problem ; social justice ; Rawls
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract This paper critically reviews Ken Binmore’s non- utilitarian and game theoretic solution to the Arrow problem. Binmore’s solution belongs to the same family as Rawls’ maximin criterion and requires the use of Nash bargaining theory, empathetic preferences, and results in evolutionary game theory. Harsanyi has earlier presented a solution that relies on utilitarianism, which requires some exogenous valuation criterion and is therefore incompatible with liberalism. Binmore’s rigorous demonstration of the maximin principle for the first time presents a real alternative to a utilitarian solution.
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    Theory and decision 42 (1997), S. 193-206 
    ISSN: 1573-7187
    Keywords: Congestion situations ; decision under uncertainty ; game theory ; potentials
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Games associated with congestion situations à la Rosenthal (1973) have pure Nash equilibria. This result implicitly relies on the existence of a potential function. In this paper we provide a characterization of potential games in terms of coordination games and dummy games. Second, we extend Rosenthal's congestion model to an incomplete information setting, and show that the related Bayesian games are potential games and therefore have pure Bayesian equilibria.
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  • 8
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    Journal of population economics 9 (1996), S. 287-300 
    ISSN: 1432-1475
    Keywords: J22 ; J13 ; Female labour supply ; part-time work ; duration analysis ; competing risks
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract This paper analyses the transitions between the three states of non-employment, part-time and full-time work of a sample of married women living in West Germany. The questions addressed concern the dynamics of women's labour market transitions and the association of the probability of transition with household and individual characteristics. A non-parametric duration analysis shows that women have a similar attachment to full-time and part-time work in terms of survival, and that survival in non-employment is shorter than in the other two states. Estimates of a parametric discrete-time competing risks duration model show that wives of retired husbands go into full-time work, children under 3 years have a disincentive effect on part-time work and that part-time work is a state that German women prefer to stay in and not a first step to full-time employment, whereas foreign women living in West Germany prefer full-time jobs.
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  • 9
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    Journal of population economics 9 (1996), S. 267-285 
    ISSN: 1432-1475
    Keywords: J22 ; J13 ; Maternity leave ; childbirth ; labor force participation
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract A striking characteristic of recent Western labour market trends is the rise in employment among mothers of very young children. So far, few studies have analysed the impact of public policies on employment rates of young mothers. In this study we address this issue by comparing two similar countries, Norway and Sweden, which have the same set of policies with slight variations, using data sets with similar designs. We analyse rates of re-entry into paid work after first birth for mothers in 1968–88 by means of hazard regression. One important finding is that the right to paid maternity leave with jobsecurity greatly speeds up the return to work.
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  • 10
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    Journal of population economics 9 (1996), S. 301-323 
    ISSN: 1432-1475
    Keywords: J22 ; J13 ; Childbirth ; labor force participation ; labor force transitions
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract There is growing evidence that social policies towards mothers have important effects on their labour market behaviour. This article argues that these effects are less important in a Male Breadwinner Regime if there is employment insecurity in the household or if women intend to participate in the long-run. I consider the case of Spain, where the workforce has become polarized between insiders and outsiders and where social policies closely resemble the Male Breadwinner Regime. The results show that Spanish mothers fall into two groups: those who do not withdraw from the labor force after childbirth and those who withdraw and do not re-enter after their children arrive at school age. Entry or re-entry appears related to the husband's employment uncertainty. Married women in an “insider household” are less likely to be mobile than women in an “outsider household”.
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  • 11
    ISSN: 1432-1475
    Keywords: J22 ; J13 ; Maternity leave ; childbirth ; labor force participation
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Since 1979 German federal maternity leave and benefit policy has given women incentives to stay at home and take care of their newborn and youngest children. In 1986 this leave and benefit policy was changed in several ways, turning it into a powerful instrument for delaying mothers' return to work after childbirth. Using a flexible duration dependence estimation technique for proportional hazards due to Prentice and Gloeckler (1978) and applied to grouped durations by Meyer (1987, 1990), we estimate post childbirth return to work hazards for women during the federally protected leave protection period and immediately upon completion of this leave period. During the leave mothers are less likely to return to work the longer is the time left in the leave protection period; however, this result cannot be attributed generally to high levels of maternity benefits. When the leave protection period ends, mothers with strong labor force attachment who are still on leave return to their jobs.
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  • 12
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    Journal of population economics 9 (1996), S. 349-361 
    ISSN: 1432-1475
    Keywords: J22 ; J13 ; Childbirth ; labour force participation ; human capital
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Children claim a large part of the parents' potential resources, particularly their time. Direct time costs arise through the time spent out of the labour force while the children are small, indirect costs are the result of lower investment into human capital. It is demonstrated in this paper that the average opportunity costs of children of lower educated mothers can be higher than those of higher educated mothers.
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  • 13
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    Theory and decision 41 (1996), S. 187-193 
    ISSN: 1573-7187
    Keywords: Altruism ; game theory ; moral point of view ; prisoner's dilemma ; sympathy
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract In a recent issue of this journal, C. L. Sheng claims to havesolved andexplained the Prisoner's Dilemma (PD) by studying it ‘from a moral point of view’ - i.e., by assuming that each player feels sympathy for the other. Sheng does not fully clarify this claim, but there is textual evidence that his point is this: PD's arise only for agents who feel little or no sympathy for each other; they cannot arise in the presence of a high degree of reciprocal sympathy. A high degree of such sympathysolves the PD in that it prevents PD's from arising, and a low degree of itexplains the PD in that it provides an essential condition for the occurrence of that game. This thesis is false, as some examples show. These examples are important; they prevent us from underestimating the problem posed by the PD.
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  • 14
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    Theory and decision 41 (1996), S. 229-256 
    ISSN: 1573-7187
    Keywords: Justice ; sense of justice ; rationality ; rational choice ; contractarianism ; contractualism ; game theory ; game ; self-transformation ; reconciliation project
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Let us say that an individual possesses aprincipled preference if she prefers satisfying her preferences without violating the principles of justice governing her community to satisfying her preferences by violating these principles. Although living among possessors of principled preferences benefits individuals, maintaining such a preference is individually costly. Further, individuals can benefit from others possessing principled preferences without themselves possessing one. In this paper, I argue that occupying a choice situation which mirrors key aspects of our own situation, maximizing rationality requires individuals to develop and maintain principled preferences. To establish that maintaining a principled preference is individually rational for the occupants of such a choice situation, I define a range of individual strategies for them, model their choice of individual strategies as a game, and argue that this game involves an equilibrium in which all of its participants would choose to develop and maintain a principled preference.
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    Theory and decision 39 (1995), S. 1-30 
    ISSN: 1573-7187
    Keywords: Computer tournaments ; cooperation ; fairness ; game theory ; pragmatism ; prisoners's dilemma ; reputation
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract This paper discusses the results of a single-shot Prisoner's Dilemma computer tournament. In the single-shot Prisoner's Dilemma tournament each pair of players interacts only once. But players can establish and detect reputations because they know how their current opponent has behaved in previous games with other players. The results show that cooperation is worthwhile, even in single-shot games, provided the outcomes of previous games are common knowledge.
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  • 16
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    Theory and decision 37 (1994), S. 7-48 
    ISSN: 1573-7187
    Keywords: epistemic logic ; game theory ; formal theory of rational play ; logical omniscience ; impossible world ; default ; autoepistemic logic ; groundedness
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract This paper is a contribution to the systematic study of alternative axiom-sets for theories of (normal-form, complete-information) games. It provides an introduction to epistemic logic, describes a formulation in epistemic logic of the structure of a theory of a game (the ‘broad theory’ of that game), and applies methods of epistemic logic to define strategies for dealing with two disturbing features of game theory, its hyperrationality assumptions and its indeterminacy. The analysis of these problems is conducted in terms of two principles which impregnate much game theory, Cleverness and Cloisteredness (the principles that players know respectively all, and only, the logical consequences of their assumed knowledge). Broad theories allow us to formulate and revise these principles despite their metatheoretical character. It is shown how Cleverness may be weakened by using logics which restrict the Rule of Epistemization, and Cloisteredness by using default logic or autoepistemic logic; the latter is used to characterize Nash equilibrium beliefs as parts of certain autoepistemic extensions of players' knowledge bases, but these particular extensions are rejected as ungrounded.
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    Theory and decision 35 (1993), S. 107-150 
    ISSN: 1573-7187
    Keywords: game theory ; evolution of cooperation ; Prisoner's Dilemma ; Pavlov
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Conflict of interest may be modeled, heuristically, by the iterated Prisoner's Dilemma game. Although several researchers have shown that the Tit-For-Tat strategy can encourage the evolution of cooperation, this strategy can never outscore any opponent and it does poorly against its clone in a noisy environment. Here we examine the family of Pavlovian strategies which adapts its play by positive and negative conditioning, much as many animals do. Mutual cooperation will evolve in a contest with Pavlov against a wide variety of opponents and in particular against its clone. And the strategy is quite stable in a noisy environment. Although this strategy cooperates and retaliates, as does Tit-For-Tat, it is not forgiving; Pavlov will exploit altruistic strategies until he is punished by mutual defection. Moreover, Pavlovian strategies are natural models for many real life conflict-of-interest encounters as well as human and computer simulations.
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  • 18
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    Theory and decision 35 (1993), S. 55-73 
    ISSN: 1573-7187
    Keywords: Paradox ; pseudo-paradox ; decision theory ; game theory ; observation ; probability ; utility ; expected utility
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract In quantum domains, the measurement (or observation) of one of a pair of complementary variables introduces an unavoidable uncertainty in the value of that variable's complement. Such uncertainties are negligible in Newtonian worlds, where observations can be made without appreciably disturbing the observed system. Hence, one would not expect that an observation of a non-quantum probabilistic outcome could affect a probability distribution over subsequently possible states, in a way that would conflict with classical probability calculations. This paper examines three problems in which observations appear to affect the probabilities and expected utilities of subsequent outcomes, in ways which may appear paradoxical. Deeper analysis of these problems reveals that the anomalies arise, not from paradox, but rather from faulty inferences drawn from the observations themselves. Thus the notion of ‘quantum’ decision theory is disparaged.
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    Theory and decision 32 (1992), S. 57-64 
    ISSN: 1573-7187
    Keywords: game theory ; prospective reference theory ; suspicion
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Expected utility theory is a normative approach to the question of how people should rationally make choice under uncertainty. Its admirers (the present author among them) would use it in every such situation. Consequently alledged counter examples, in which it is arguably unreasonable to act as expected utility theory suggests, threaten to undermine the theory as a normative theory. The phenomena of Allais and Ellsberg were proposed as just such examples. They differ from the later work of Kahneman, Tversky and others in that the latter exposes ways in which people's behavior, descriptively, differs from the expected utility theory norm. Those examples do not threaten the normative status of expected utility theory. This paper reviews the Allais and Ellsberg examples, and proposes an explanation of them within expected utility theory. The key to the explanation is that the expectation in expected utility theory is to be taken with respect to the subjective beliefs of the decision maker. If I have positive probability of strategic behavior by the person making the offers, neither phenomenon is a paradox.
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    Theory and decision 32 (1992), S. 1-20 
    ISSN: 1573-7187
    Keywords: game theory ; transferable utility ; water resources ; regional cooperation
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract Two empirical applications of Cooperative Game Theory concerned with regional cooperation in the use of irrigation water are presented. Both studies attempt to derive income maximizing solutions for the participants and the related income allocation schemes. Distinction is made between transferable and non-transferable utility situations. The reasonableness and the acceptability of the schemes derived are later critically evaluated. Main findings are: (1) use of utility functions leads to problems in gains allocations, (2) the Core concept may be useless in this application because since it is either difficult to calculate or is empty in many cases, (3) gains allocation and the derived core are heavily dependent on probabilities of coalitions formation in the Shapley value or the Generalized Shapley Value.
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    Theory and decision 33 (1992), S. 177-189 
    ISSN: 1573-7187
    Keywords: Axioms ; cooperation ; game theory ; Nash equilibrium ; rationality
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract The purpose of this paper is to analyze axiomatically the Nash equilibrium concept. The class of games under study is a (relatively large) subclass of n-person normal form games. Solutions are correspondences which associate to each game a non empty set of strategy vectors of this game. It is shown that if a solution satisfies the axioms Independence of irrelevant alternatives (IIA) and Individual rationality (IR), then all the strategy vectors in this solution are Nash equilibria. This result holds good also if IR is replaced by Strong individual monotonicity (SIM) or Weak principle of fair compromise (WPFC).
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    Theory and decision 31 (1991), S. 199-240 
    ISSN: 1573-7187
    Keywords: Bayesian decision theory ; game theory ; arbitrage ; coherence ; incompleteness ; competitive equilibrium ; correlated equilibrium ; capital asset pricing model ; risk-neutral probabilities
    Source: Springer Online Journal Archives 1860-2000
    Topics: Sociology , Economics
    Notes: Abstract No-arbitrage is the fundamental principle of economic rationality which unifies normative decision theory, game theory, and market theory. In economic environments where money is available as a medium of measurement and exchange, no-arbitrage is synonymous with subjective expected utility maximization in personal decisions, competitive equilibria in capital markets and exchange economies, and correlated equilibria in noncooperative games. The arbitrage principle directly characterizes rationality at the market level; the appearance of deliberate optimization by individual agents is a consequence of their adaptation to the market. Concepts of equilibrium behavior in games and markets can thus be reconciled with the ideas that individual rationality is bounded, that agents use evolutionarily-shaped decision rules rather than numerical optimization algorithms, and that personal probabilities and utilities are inseparable and to some extent indeterminate. Risk-neutral probability distributions, interpretable as products of probabilities and marginal utilities, play a central role as observable quantities in economic systems.
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    Theory and decision 26 (1989), S. 47-79 
    ISSN: 1573-7187
    Keywords: game theory ; prisoner's dilemma ; Markov chain ; evolution of cooperation
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    Topics: Sociology , Economics
    Notes: Abstract Our Pavlov learns by conditioned response, through rewards and punishments, to cooperate or defect. We analyze the behavior of an extended play Prisoner's Dilemma with Pavlov against various opponents and compute the time and cost to train Pavlov to cooperate. Among our results is that Pavlov and his clone would learn to cooperate more rapidly than if Pavlov played against the Tit for Tat strategy. This fact has implications for the evolution of cooperation.
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    Theory and decision 26 (1989), S. 263-293 
    ISSN: 1573-7187
    Keywords: utility ; risk ; value ; game theory ; consequences ; Bayesian
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    Notes: Abstract In this paper, a problem for utility theory - that it would have an agent who was compelled to play “Russian Roulette’ with one revolver or another, to pay as much to have a six-shooter with four bullets relieved of one bullet before playing with it, as he would be willing to pay to have a six-shooter with two bullets emptied - is reviewed. A less demanding Bayesian theory is described, that would have an agent maximize expected values of possible total consequence of his actions. And utility theory is located within that theory as valid for agents who satisfy certain formal conditions, that is, for agents who are, in terms of that more general theory, indifferent to certain dimensions of ‘risk’. Raiffa- and Savage-style arguments for its more general validity are then resisted. Addenda are concerned with implications for game theory, and relations between ‘utilities’ and ‘values’.
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