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Games, Volume 15, Issue 3 (June 2024) – 1 article

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15 pages, 2987 KiB  
Article
Evolution of “Pay-It-Forward” in the Presence of the Temptation to Free-Ride
by Satoshi Uchida, Tatsuya Sasaki, Hitoshi Yamamoto and Isamu Okada
Games 2024, 15(3), 16; https://doi.org/10.3390/g15030016 - 25 Apr 2024
Viewed by 654
Abstract
“Paying it forward” is a behavior in which people help someone else because they were helped in the past. Although experimental evidence exists that indicates that real human beings often “pay-it-forward” even in the face of free-rider risks, the theoretical basis for the [...] Read more.
“Paying it forward” is a behavior in which people help someone else because they were helped in the past. Although experimental evidence exists that indicates that real human beings often “pay-it-forward” even in the face of free-rider risks, the theoretical basis for the evolution of this behavior remains unclear. In this paper, we propose a game-theoretical model that explains how pay-it-forward behavior can evolve despite the temptation to free-ride. By assuming that human beings exhibit cognitive distortions, as predicted by prospect theory, and that free-riding is punished with a tiny probability, we demonstrate that pay-it-forward, alongside unconditional altruistic behavior, can evolve and effectively deter free-riding behavior. Full article
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