Cooperation and Network Formation
AbstractThe present paper proposes a simple model for studying the interplay between self-enforcing cooperation and network formation. In particular, the model provides an answer to the ancient question of how cooperative behavior emerges in different communities and how the possibility of behaving cooperatively shapes the social structure of a community. In a sense, I provide an explanation of how trust, by which I mean the existence of self-sustainable cooperation, can emerge in a society and how the society is shaped by third-party enforcement.
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Bibliographic InfoPaper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number 205.
Date of creation: 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-09 (All new papers)
- NEP-EVO-2005-12-09 (Evolutionary Economics)
- NEP-GTH-2005-12-09 (Game Theory)
- NEP-NET-2005-12-09 (Network Economics)
- NEP-SOC-2005-12-09 (Social Norms & Social Capital)
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