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The Open Method of Coordination (OMC) as an Evolutionary Learning Process

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  • Ana B. Ania
  • Andreas Wagener

Abstract

We interpret the Open Method of Coordination (OMC), recently adopted by the EU as a mode of governance in the area of social policy and other fields, as an imitative learning dynamics of the type considered in evolutionary game theory. The best-practise feature and the iterative design of the OMC correspond to the behavioral rule “imitate the best.” In a redistribution game with utilitarian governments and mobile welfare beneficiaries, we compare the outcomes of imitative behavior (long-run evolutionary equilibrium), decentralized best-response behaviour (Nash equilibrium), and coordinated policies. The main result is that the OMC allows policy coordination on a strict subset of the set of Nash equilibria, favoring in particular coordination on intermediate values of the policy instrument.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2601.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2601

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Keywords: Open Method of Coordination; Finite-population Evolutionarily Stable Strategy; imitation; mobility; redistribution;

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Cited by:
  1. Ana B. Ania & Andreas Wagener, 2014. "Decentrqalized Redistribution in a Laboratory Federation," Vienna Economics Papers 1402, University of Vienna, Department of Economics.

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