On the Co-evolution of Retribution and Trustworthiness:An (Indirect) Evolutionary and Experimental Analysis

Standard economic explanations of good conduct in trade rely almostexclusively on future-directed extrinsic motivations induced by materialincentives. But intrinsic motives to behave trustworthy and to punishuntrustworthiness do support trade. In our model, intrinsically motivatedplayers are aware of their own type and observe the population share ofother types. The material success of various types and their co-evolution areanalyzed, and it is checked whether the dynamics of the indirectevolutionary analysis are replicated in the laboratory.