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Evolutionary stability of social norms in a socioeconomic equilibrium model

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  • Hans Grüner

Abstract

A hybrid of a model of economic equilibrium in two markets and a social game is formed. The link between the two is established through a social norm that conditions correct social behavior on economic variables and therefore distorts the economic equilibrium allocation. The initial endowment of an individual determines whether she gains from a social norm. The evolution of norms is examined in a dynamic model where norms are more likely to persist if they deliver higher utility to their believers. Also it is assumed that norms lose importance when they are disobeyed by their believers. Optimally coordinating norms are not necessarily evolutionarily stable, and a suboptimal norm can be the outcome of the evolutionary process. Copyright Kluwer Academic Publishers 1995

Suggested Citation

  • Hans Grüner, 1995. "Evolutionary stability of social norms in a socioeconomic equilibrium model," Constitutional Political Economy, Springer, vol. 6(3), pages 233-245, October.
    • Handle: RePEc:kap:copoec:v:6:y:1995:i:3:p:233-245
    DOI: 10.1007/BF01303404
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    References listed on IDEAS

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    1. Giacomo Corneo, 1993. "Semi-unionized bargaining with endogenous membership and management opposition," Journal of Economics, Springer, vol. 57(2), pages 169-188, June.
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    Cited by:

    1. Bisin, Alberto & Verdier, Thierry, 1998. "On the cultural transmission of preferences for social status," Journal of Public Economics, Elsevier, vol. 70(1), pages 75-97, October.

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    More about this item

    Keywords

    A12; A13; D10; D61;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D10 - Microeconomics - - Household Behavior - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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