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Stable Economic Cooperation: A Relational Approach

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Author Info
Gilles, R.P.
Lazarova, E.A.
Ruys, P.H.M. (Tilburg University, Center for Economic Research)
Abstract

We consider a relational economy in which economic agents participate in three types of relational economic activities: autarkic activities; binary matching activities; and plural cooperative activities. We introduce a stability notion and characterize stable interaction structures, both in the absence of externalities from cooperation as well as in the presence of size-based externalities. It is shown that institutional elements such as the emergence of socio-economic roles and organizations based on hierarchical leadership structures support and promote stable economic development.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2008-25.

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Date of creation: 2008
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Handle: RePEc:dgr:kubcen:200825

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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