A strategy contest in an iterated Prisoner's Dilemma with an exit option after each game is developed. The whole model is assumed to represent the conditions for egoistical cooperation in a large and anonymous society, which is based mainly on exchange relationships and voluntary cooperation between individuals; therefore, it is appropriate for studying the social stability of free markets. The strategies have no memory, effects of reputation do not exist, and defectors cannot be identified, traced, and held responsible for their actions. This scenario abandons the preconditions usually regarded as necessary for establishing cooperation. Nevertheless, egoistical cooperation may emerge in this model. It turns out that egoistical cooperation is much more robust than realized by most game-theoretical and sociological analyses.

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Dynamic Properties of Energy Affordability MeasuresPeter Heindl* Department of Environmental and Resource Economics Centre for European Economic Research, Mannheim (Germany) and Rudolf Schüssler** Department of Philosophy University of Bayreuth (Germany) -Abstract -Measures of affordability are applied in practice, e.g., to assess the affordability of energy services, water or housing. They can be interpreted as measures of deprivation in a specific domain of consumption. The large body of literature on affordability measure has little overlap with the existing literature on poverty measurement. A comprehensive assessment of the response of affordability measures as a result of changes in the distribution of income or expenditure is missing. This paper aims to fill this gap by providing a conceptual discussion on the 'dynamics' of energy affordability measures. Several types of measures are examined in a microsimulation framework to assess their dynamic properties. Our results indicate that some measures exhibit odd dynamic behavior. This includes measures used in practice, such as the low income/high cost measure and the double median of expenditure share indicator. Odd dynamic behavior is attributed to definitions made with respect to higher moments of the expenditure distribution. Definitions that rely on a percentage share of expenditure relative to income or an absolute or relative income poverty line fare well from a dynamic perspective.

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