Cooperation in Evolving Social Networks
AbstractWe study the problem of cooperative behavior emerging in an environment where individual behaviors and interaction structures coevolve. Players not only learn which strategy to adopt by imitating the strategy of the best-performing player they observe, but also choose with whom they should interact by selectively creating and/or severing ties with other players based on a myopic cost-benefit comparison. We find that scalable cooperation--that is, high levels of cooperation in large populations--can be achieved in sparse networks, assuming that individuals are able to sever ties unilaterally and that new ties can only be created with the mutual consent of both parties. Detailed examination shows that there is an important trade-off between local reinforcement and global expansion in achieving cooperation in dynamic networks. As a result, networks in which ties are costly and local structure is largely absent tend to generate higher levels of cooperation than those in which ties are made easily and friends of friends interact with high probability, where the latter result contrasts strongly with the usual intuition.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 53 (2007)
Issue (Month): 7 (July)
networks-graphs; theory; games-group decisions; simulation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Luthi, Leslie & Pestelacci, Enea & Tomassini, Marco, 2008. "Cooperation and community structure in social networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(4), pages 955-966.
- Constanza Fosco & Matteo Marsili & Fernando Vega-Redondo, 2008. "Peer Effects and Peer Avoidance: Epidemic Diffusion in Coevolving Networks," Economics Working Papers ECO2008/19, European University Institute.
- Daniel Ladley & Ian Wilkinson & Louise Young, 2013. "The Evolution Of Cooperation In Business: Individual Vs. Group Incentives," Discussion Papers in Economics 13/14, Department of Economics, University of Leicester.
- Mengel, Friederike, 2007.
"Conformism and Cooperation in a Local Interaction Model,"
4051, University Library of Munich, Germany.
- Friederike Mengel, 2009. "Conformism and cooperation in a local interaction model," Journal of Evolutionary Economics, Springer, vol. 19(3), pages 397-415, June.
- Gao, Lan & Liu, Xiaohui & Zou, Huan, 2013. "The role of human mobility in promoting Chinese outward FDI: A neglected factor?," International Business Review, Elsevier, vol. 22(2), pages 437-449.
- HaydÃ©e Lugo, 2005.
"Incentives to Cooperate in Network Formation,"
Computing in Economics and Finance 2005
181, Society for Computational Economics.
- Constanza Fosco & Friederike Mengel, 2009.
"Cooperation through Imitation and Exclusion in Networks,"
2009.37, Fondazione Eni Enrico Mattei.
- Fosco, Constanza & Mengel, Friederike, 2011. "Cooperation through imitation and exclusion in networks," Journal of Economic Dynamics and Control, Elsevier, vol. 35(5), pages 641-658, May.
- Mengel, Friederike & Fosco, Constanza, 2007. "Cooperation through Imitation and Exclusion in Networks," MPRA Paper 5258, University Library of Munich, Germany.
- Zhong, Weicai & Abbass, Hussein A. & Bender, Axel & Liu, Jing, 2011. "Mixed strategy and coevolution dynamics in social networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(2), pages 410-417.
- Jason Barr & Troy Tassier, 2008.
"Endogenous Neighborhood Selection and the Attainment of Cooperation in a Spatial Prisoner's Dilemma Game,"
Fordham Economics Discussion Paper Series
dp2008-21, Fordham University, Department of Economics.
- Jason Barr & Troy Tassier, 2010. "Endogenous Neighborhood Selection and the Attainment of Cooperation in a Spatial Prisoner’s Dilemma Game," Computational Economics, Society for Computational Economics, vol. 35(3), pages 211-234, March.
- Matthias Greiff, 2013. "Rewards and the private provision of public goods on dynamic networks," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1001-1021, November.
- Faqi Du & Feng Fu, 2011. "Partner Selection Shapes the Strategic and Topological Evolution of Cooperation," Dynamic Games and Applications, Springer, vol. 1(3), pages 354-369, September.
- Julian Dormann & Thomas Ehrmann & Michael Kopel, 2008. "Managing the Evolution of Cooperation," Papers on Economics and Evolution 2008-01, Max Planck Institute of Economics, Evolutionary Economics Group.
- Edoardo Mollona, 2008. "Computer simulation in social sciences," Journal of Management and Governance, Springer, vol. 12(2), pages 205-211, May.
- Rezaei, Golriz & Kirley, Michael, 2012. "Dynamic social networks facilitate cooperation in the N-player Prisoner’s Dilemma," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(23), pages 6199-6211.
- Deng, Lili & Tang, Wansheng & Zhang, Jianxiong, 2011. "The coevolutionary ultimatum game on different network topologies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(23), pages 4227-4235.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.