1999
DOI: 10.1162/003355399556151
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A Theory of Fairness, Competition, and Cooperation

Abstract: There is strong evidence that people exploit their bargaining power in competitive markets but not in bilateral bargaining situations. There is also strong evidence that people exploit free-riding opportunities in voluntary cooperation games. Yet, when they are given the opportunity to punish free-riders, stable cooperation is maintained although punishment is costly for those who punish. This paper asks whether there is a simple common principle that can explain this puzzling evidence. We show that if some pe… Show more

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Cited by 8,733 publications
(2,707 citation statements)
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References 21 publications
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“…Our conclusions contradict a widely accepted paradigm in the field of human behaviour, that the results of public goods games reflect a uniquely human regard for the welfare of others [3,18,20]. We suggest that the acceptance of this human pro-sociality hypothesis was based on two things.…”
Section: (B) Learning In Public Goods Gamescontrasting
confidence: 90%
“…Our conclusions contradict a widely accepted paradigm in the field of human behaviour, that the results of public goods games reflect a uniquely human regard for the welfare of others [3,18,20]. We suggest that the acceptance of this human pro-sociality hypothesis was based on two things.…”
Section: (B) Learning In Public Goods Gamescontrasting
confidence: 90%
“…It is worth noting that connections between beliefs and behaviour can be formalized in our environment. In particular, when viewed through the lens of the Fehr-Schmidt [26] model of social preferences (see the electronic supplementary material), differences in expectations we elicit can well explain differences in frequencies of trust we observe. We also found the group formation process to influence reciprocity, though to a lesser extent than trust.…”
Section: Resultsmentioning
confidence: 80%
“…However, humans frequently compare themselves to others, sometimes to their detriment, for instance incurring losses to make someone else suffer a greater loss in an ultimatum game. However, regard for others-either positively or negatively-would seem to be an important component of the types of cooperation, and competition, seen in human societies (Fehr & Schmidt 1999). The implication is thus that many features of cooperation, sense of fairness, morality and so forth that typify human social interactions have arisen no sooner than the last 6 million years of human evolution.…”
Section: Discussionmentioning
confidence: 99%