An agent- based model of social dynamics is introduced using a deformable fitness landscape, and it is shown that in certain clearly specifiable situations, strategies that are different from utility maximization outperform utility maximizers. Simulation results are presented and intuitive interpretations of the results provided. The situations considered occur when individuals' actions affect the outcomes for other agents and endogenous effects are dominant. The Tragedy of the Commons is merely a special case of this. Arguments are given that constraints are to be encouraged in some circumstances. The appropriate role of constraints in various types of society is assessed and their use justified in identifiable types of situations.
Common priors under endogenous uncertainty
