Strategic behavior in Schelling dynamics: A new result and experimental evidence
AbstractIn this paper we experimentally test Schelling's (1971) segregation model and confirm the striking result of segregation. In addition, we extend Schelling's model theo- retically 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 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.
Bibliographic InfoPaper provided by University of Valencia, ERI-CES in its series Discussion Papers in Economic Behaviour with number 0312.
Date of creation: Mar 2012
Date of revision:
Subgame perfect equilibrium; segregation; experimental games;
Other versions of this item:
- Juan Miguel Benito & Pablo Branas-Garz & Penelope Hernandez & Juan A. Sanchis, 2011. "Strategic behavior in Schelling dynamics: A new result and experimental evidence," Working Papers 11-14, Chapman University, Economic Science Institute.
- NEP-ALL-2012-05-29 (All new papers)
- NEP-EXP-2012-05-29 (Experimental Economics)
- NEP-GTH-2012-05-29 (Game Theory)
- NEP-URE-2012-05-29 (Urban & Real Estate Economics)
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.:
- Martin J. Osborne & Ariel Rubinstein, 1994.
"A Course in Game Theory,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262650401, December.
- Ariel Rubinstein, 2006.
"Instinctive and Cognitive Reasoning: A Study of Response Times,"
2006.36, Fondazione Eni Enrico Mattei.
- Ariel Rubinstein, 2007. "Instinctive and Cognitive Reasoning: A Study of Response Times," Economic Journal, Royal Economic Society, vol. 117(523), pages 1243-1259, October.
- 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.
- 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.
- 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.
- 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.
- Pancs, Romans & Vriend, Nicolaas J., 2007. "Schelling's spatial proximity model of segregation revisited," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 1-24, February.
- Romans Pancs & Nicolaas J. Vriend, . "Schelling's Spatial Proximity Model of Segregation Revisited," Modeling, Computing, and Mastering Complexity 2003 15, 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.
- Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz, 2005.
"Experimental Analysis of Neighborhood Effects,"
NBER Working Papers
11577, National Bureau of Economic Research, Inc.
- Ariel Rubinstein, 2007. "Instinctive and Cognitive Reasoning: Response Times Study," Levine's Bibliography 321307000000001011, UCLA Department of Economics.
- Penelope Hernandez & Coralio Ballester, 2011.
Discussion Papers in Economic Behaviour
0111, University of Valencia, ERI-CES.
- Juan M. Benito-Ostolaza & Juan A. Sanchis-Llopis, 2013.
"Training Strategic Thinking: Experimental Evidence,"
1323, Department of Applied Economics II, Universidad de Valencia.
- Benito-Ostolaza, Juan M. & Sanchis-Llopis, Juan A., 2014. "Training strategic thinking: Experimental evidence," Journal of Business Research, Elsevier, vol. 67(5), pages 785-789.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emilio Calvo Ramón).
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.