Strategic behavior in Schelling dynamics: A new result and experimental evidence
Abstract
In this paper we experimentally test Schelling’s (1971) segregation model and confirm the striking result of segregation. In addition, we extend Schelling’s model theoretically by adding strategic behavior and moving costs. We obtain a unique subgame perfect equilibrium in which rational agents facing moving costs may find it optimal not to move (anticipating other participants’ movements). This equilibrium is far for full segregation. We run experiments for this extended Schelling model. We find that the percentage of strategic players dramatically increases with the cost of moving and that the degree of segregation depends on the distribution of rational subjects.Download Info
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Paper provided by Chapman University, Economic Science Institute in its series Working Papers with number 11-14.Length: 38 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:chu:wpaper:11-14
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Related research
Keywords: Subgame perfect equilibrium; segregation; experimental games;Other versions of this item:
- Juan Miguel Benito & Pablo Brañas-Garza & Penélope Hernández & Juan A. Sanchis, 2012. "Strategic behavior in Schelling dynamics: A new result and experimental evidence," Discussion Papers in Economic Behaviour 0312, University of Valencia, ERI-CES.
- NEP-ALL-2011-12-13 (All new papers)
- NEP-EXP-2011-12-13 (Experimental Economics)
- NEP-GTH-2011-12-13 (Game Theory)
- NEP-MIC-2011-12-13 (Microeconomics)
- NEP-URE-2011-12-13 (Urban & Real Estate Economics)
References
References listed on IDEASPlease 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.:
- David Card & Alexandre Mas & Jesse Rothstein, 2007.
"Tipping and the Dynamics of Segregation,"
NBER Working Papers
13052, National Bureau of Economic Research, Inc.
- David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, MIT Press, vol. 123(1), pages 177-218, 02.
- Ariel Rubinstein, 2007.
"Instinctive and Cognitive Reasoning: A Study of Response Times,"
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Royal Economic Society, vol. 117(523), pages 1243-1259, October.
- Ariel Rubinstein, 2006. "Instinctive and Cognitive Reasoning: A Study of Response Times," Working Papers 2006.36, Fondazione Eni Enrico Mattei.
- Ariel Rubinstein, 2006. "Instinctive and Cognitive Reasoning: A Study of Response Times," Discussion Papers 1424, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Pancs, Romans & Vriend, Nicolaas J., 2007.
"Schelling's spatial proximity model of segregation revisited,"
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Elsevier, vol. 91(1-2), pages 1-24, February.
- Romans Pancs & Nicolaas J. Vriend, 2003. "Schelling's Spatial Proximity Model of Segregation Revisited," Computing in Economics and Finance 2003 63, Society for Computational Economics.
- Romans Pancs & Nicolaas J. Vriend, 2003. "Schelling's Spatial Proximity Model of Segregation Revisited," Working Papers 487, Queen Mary, University of London, School of Economics and Finance.
- Romans Pancs & Nicolaas J. Vriend, . "Schelling's Spatial Proximity Model of Segregation Revisited," Modeling, Computing, and Mastering Complexity 2003 15, Society for Computational Economics.
- Zhang, Junfu, 2004. "Residential segregation in an all-integrationist world," Journal of Economic Behavior & Organization, Elsevier, vol. 54(4), pages 533-550, August.
- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
- Ariel Rubinstein, 2007. "Instinctive and Cognitive Reasoning: Response Times Study," Levine's Bibliography 321307000000001011, UCLA Department of Economics.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Coralio Ballester & Penélope Hernández, 2010.
"Bounded Rationality,"
ThE Papers
10/10, Department of Economic Theory and Economic History of the University of Granada..
- Penelope Hernandez & Coralio Ballester, 2011. "Bounded Rationality," Discussion Papers in Economic Behaviour 0111, University of Valencia, ERI-CES.
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