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Network Characteristics Enabling Efficient Coordination: A Simulation Study

Author

Listed:
  • Abhimanyu Khan

    (University of Cambridge)

  • Ronald Peeters

    (Maastricht University)

  • Frank Thuijsman

    (Maastricht University)

  • Philippe Uyttendaele

    (Maastricht University)

Abstract

Using data generated by extensive simulations of a process where individuals interact globally in a coordination game and iteratively imitate the action of the most successful individual in their local neighbourhood, we study the characteristics of the observation network and distribution of initial choices that facilitate (a speedy) convergence to efficient coordination. Knowing these characteristics is crucial when intervening in social network structures with the intention to nudge society to a socially preferred outcome. The most important factor appears to be the share of individuals that are initially seeded with the socially desirable action. Only for a small window of this share, other factors, including the degree distribution in the network and the segregation of individuals using similar actions, have an influence on the dynamic process of achieving efficient coordination. Moreover, networks possessing the properties of a scale-free network are more likely to yield an efficient outcome compared to small-world networks.

Suggested Citation

  • Abhimanyu Khan & Ronald Peeters & Frank Thuijsman & Philippe Uyttendaele, 2016. "Network Characteristics Enabling Efficient Coordination: A Simulation Study," Dynamic Games and Applications, Springer, vol. 6(4), pages 495-519, December.
    • Handle: RePEc:spr:dyngam:v:6:y:2016:i:4:d:10.1007_s13235-015-0169-8
    DOI: 10.1007/s13235-015-0169-8
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    More about this item

    Keywords

    Coordination; Local imitation; Global random interaction; Networks;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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