Institutions, Behavior and Evolution

The three articles constituting this thesis are for reasons of content or method related to the following three fields in economics: Behavioral Economics, Evolutionary Game Theory and Formal Institutional Economics. A core element of these fields is the concept of individual preferences. Preferences are of central importance for the conceptional framework to analyze human behavior. They form the foundation for the theory of rational choice which is defined by the determination of the choice set and the selection of the most preferred alternative according to some consistency requirements. The theory of rational choice is based on a very simplified description of the problem of choice (object function and constraints). However, that choices depend on many more factors is for instance propagated by psychological theories and is supported by many empirical and experimental studies. This thesis adds to a better understanding of individual behavior to the extent that the evolution of certain characteristics of preferences and their consequences on human behavior forms the overarching theme of the dissertation. The long-term effect of evolutionary forces on a particular characteristic of importance in the theoretical, empirical and experimental economic literature, the concept of inequality aversion, is subject of the article “The evolution of inequality aversion in a simplified game of life” (Chapter 4). The contribution of the article is the overcoming of a restriction of former approaches to analyze the evolution of preferences in very simple environments. By classifying human interaction into three central economic games, the article provides a first step towards a simplified and sufficiently complete description of the interaction environment. Within such an environment the article characterizes the evolutionary stable preference distribution. One result shows, that the interaction of the aforementioned three classes can stabilize a preference of inequality aversion in the subpopulation which is favored in the problem of redistribution. The two remaining articles are concerned with social norms, which dissemination is determined by medium-run forces of cultural evolution. The article “The impact of market innovations on the evolution of social norms: the sustainability case.“ (Chapter 2) studies the interrelation between product innovations which are relevant from a sustainability perspective and an according social norm in consumption. This relation is based on a conformity bias in consumption and the attempt to avoid cognitive dissonances resulting from non-compliant consumption. Among others, it is shown that a conformity bias on the consumption side can lead to multiple equilibria on the side of norm adoption. The article “Evolution of cooperation in social dilemmas: signaling internalized norms.” (Chapter 3) studies the emergence of cooperation in social dilemmas based on the signaling of social norms. The article provides a potential explanation of cooperative behavior, which does not rely on the assumption of structured populations or on the unmotivated ability of social norms to restrict individual actions or strategy spaces. A comprehensive result of the single articles is the explanation of the phenomenon of partial norm adaption or dissemination of preferences. The plurality of the applied approaches with respect to the proximity to the rational choice approach and regarding the underlying evolutionary mechanics is a particular strength of the thesis. It shows the equality of these approaches in their potential to explain the phenomenon of cooperation in environments that provide material incentives for defective behavior. This also points to the need of a unified framework considering the biological and cultural coevolution of preference patterns.

Nitrogen use efficiency and optimization of nitrogen fertilizer application for stable yields and high quality of cereals grown in conservation agriculture

In most agroecosystems, nitrogen (N) is the most important nutrient limiting plant growth. One management strategy that affects N cycling and N use efficiency (NUE) is conservation agriculture (CA), an agricultural system based on a combination of minimum tillage, crop residue retention and crop rotation. Available results on the optimization of NUE in CA are inconsistent and studies that cover all three components of CA are scarce. Presently, CA is promoted in the Yaqui Valley in Northern Mexico, the country´s major wheat-producing area in which from 1968 to 1995, fertilizer application rates for the cultivation of irrigated durum wheat (Triticum durum L.) at 6 t ha-1 increased from 80 to 250 kg ha-1, demonstrating the high intensification potential in this region. Given major knowledge gaps on N availability in CA this thesis summarizes the current knowledge of N management in CA and provides insights in the effects of tillage practice, residue management and crop rotation on wheat grain quality and N cycling. Major aims of the study were to identify N fertilizer application strategies that improve N use efficiency and reduce N immobilization in CA with the ultimate goal to stabilize cereal yields, maintain grain quality, minimize N losses into the environment and reduce farmers’ input costs. Soil physical and chemical properties in CA were measured and compared with those in conventional systems and permanent beds with residue burning focusing on their relationship to plant N uptake and N cycling in the soil and how they are affected by tillage and N fertilizer timing, method and doses. For N fertilizer management, we analyzed how placement, time and amount of N fertilizer influenced yield and quality parameters of durum and bread wheat in CA systems. Overall, grain quality parameters, in particular grain protein concentration decreased with zero-tillage and increasing amount of residues left on the field compared with conventional systems. The second part of the dissertation provides an overview of applied methodologies to measure NUE and its components. We evaluated the methodology of ion exchange resin cartridges under irrigated, intensive agricultural cropping systems on Vertisols to measure nitrate leaching losses which through drainage channels ultimately end up in the Sea of Cortez where they lead to algae blooming. A throughout analysis of N inputs and outputs was conducted to calculate N balances in three different tillage-straw systems. As fertilizer inputs are high, N balances were positive in all treatments indicating the risk of N leaching or volatilization during or in subsequent cropping seasons and during heavy rain fall in summer. Contrary to common belief, we did not find negative effects of residue burning on soil nutrient status, yield or N uptake. A labeled fertilizer experiment with urea 15N was implemented in micro-plots to measure N fertilizer recovery and the effects of residual fertilizer N in the soil from summer maize on the following winter crop wheat. Obtained N fertilizer recovery rates for maize grain were with an average of 11% very low for all treatments.