Predicting Preferences is Rational

In a review of a paper by Camerer and Fehr on social neuroeconomics, Benoit Hardy-Vallée of Natural Rationality makes the point:

So basically, we have enough evidence to justify a model of rational agents as entertaining social preferences. As I argue in a forthcoming paper (let me know if you want to have a copy), these findings will have normative impact, especially for game-theoretic situations: if a rational agent anticipate other agents’s strategies, she better anticipate that they have social preferences. For instance, one might argue that in the Ultimatum Game, it is rational to make a fair offer.


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