Altruism and beyond by Stark O.

By Stark O.

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6)) so that for dF suf®ciently small " the ®rst term is negative. Indeed, by choosing " small enough, we can always make the ®rst (negative) term dominate the second (nonnegative) term. 13)) from father to son! Although consumption transfers 3 4 It may strike the reader as peculiar to differentiate with respect to F since F is a preference parameter. We interpret this procedure as follows. The father's altruism for the son may depend upon various external events. The derivatives would then describe the effects of altruism-enhancing events on wellbeing.

The father's altruism for the son may depend upon various external events. The derivatives would then describe the effects of altruism-enhancing events on wellbeing. In a context somewhat different from the one studied here, for instance, a marriage market, we can envision i …F† as selecting a marriage partner j …S† from a continuum of alternatives (that is, there is a potential partner for each …i j † combination). The derivatives would then describe the effects on wellbeing of varying one's marriage partner.

Individuals may live either two or three periods. They face a probability  P ‰0Y 1† of dying at the end of the second period. If they survive, with probability of …1 À †, they die at the end of the third period. Population size is thus N ‡ N ‡ N…1 À † ˆ N…3 À †. Individuals of generation t are characterized by their intertemporal utility function de®ned over consumption in the three periods of their life. Ut ˆ 3 ˆ iˆ1 iÀ1 u…cti †Y …2X3† where  ` 1 is the individual's discount factor and uH …c† b 0 and uHH …c† 0 Vc !

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