In search of an evolutionary edge: trading with a few, more, or many
AbstractConsider a population of farmers who live around a lake. Each farmer engages in trade with his m adjacent neighbors, where m is termed the "span of interaction." Trade is governed by a prisonerâs dilemma "rule of engagement." A farmerâs payoff is the sum of the payoffs from the m prisonerâs dilemma games played with his m/2 neighbors to the left, and with his m/2 neighbors to the right. When a farmer dies, his son takes over. The son who adheres to his fatherâs span of interaction decides whether to cooperate or defect by considering the actions taken and the payoffs received by the most prosperous member of the group comprising his father and his fatherâs m trading partners. Under a conventional structure of payoffs, it is shown that a large span of interaction is detrimental to the long-run coexistence of cooperation and defection, and conditions are provided under which the social outcome associated with the expansion of trade when individuals trade with a few is better than that when they trade with many. Under the stipulated conditions it is shown, by means of a static comparative analysis of the steady state configurations of the farmer population, that an expansion of the market can be beneficial in one context, detrimental in another.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Journal of Evolutionary Economics.
Volume (Year): 21 (2011)
Issue (Month): 5 (December)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00191/index.htm
Other versions of this item:
- Stark, Oded & Behrens, Doris A., 2010. "In search of an evolutionary edge: trading with a few, more, or many," Discussion Papers 94280, University of Bonn, Center for Development Research (ZEF).
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alós-Ferrer, Carlos & Weidenholzer, Simon, 2008. "Contagion and efficiency," Journal of Economic Theory, Elsevier, vol. 143(1), pages 251-274, November.
- Ellison, Glenn, 1993.
"Learning, Local Interaction, and Coordination,"
Econometric Society, vol. 61(5), pages 1047-71, September.
- Merrill M. Flood, 1958. "Some Experimental Games," Management Science, INFORMS, vol. 5(1), pages 5-26, October.
- Friederike Mengel, 2009.
"Conformism and cooperation in a local interaction model,"
Journal of Evolutionary Economics,
Springer, vol. 19(3), pages 397-415, June.
- Mengel, Friederike, 2007. "Conformism and Cooperation in a Local Interaction Model," MPRA Paper 4051, University Library of Munich, Germany.
- Tackseung Jun & Rajiv Sethi, 2008.
"Neighborhood structure and the evolution of cooperation,"
Journal of Evolutionary Economics,
Springer, vol. 18(1), pages 103-103, February.
- Tackseung Jun & Rajiv Sethi, 2007. "Neighborhood structure and the evolution of cooperation," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 623-646, October.
- Robert Hoffmann & Nigel Waring, 1996. "The Localisation of Interaction and Learning in the Repeated Prisoner's Dilemma," Working Papers 96-08-064, Santa Fe Institute.
- Stark, Oded & Jakubek, Marcin, 2011.
"Is population growth conducive to the sustainability of cooperation?,"
University of Tuebingen Working Papers in Economics and Finance
15, University of Tuebingen, Faculty of Economics and Social Sciences.
- Stark, Oded & Jakubek, Marcin, 2011. "Is population growth conducive to the sustainability of cooperation?," Economics & Human Biology, Elsevier, vol. 9(4), pages 443-451.
- Stark, Oded & Jakubek, Marcin, 2011. "Is population growth conducive to the sustainability of cooperation?," Discussion Papers 109965, University of Bonn, Center for Development Research (ZEF).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.