Custom versus fashion: path-dependence and limit cycles in a random matching game
AbstractA pairwise random matching game is considered to identify the social environments that give rise to the social custom and fashion cycles. The game, played by Conformists and Nonconformists, can generate a variety of socially stable behavior patterns. In the path-dependence case, Conformists set the social custom and Nonconformists revolt against it; what action becomes the custom is determined by “history.” In the limit cycle case, Nonconformists become fashion leaders and switch their actions periodically, while Conformists follow with delay. The outcome depends on the relative share of Conformists to Nonconformists as well as their matching patterns.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Minneapolis in its series Discussion Paper / Institute for Empirical Macroeconomics with number 82.
Date of creation: 1993
Date of revision:
Other versions of this item:
- Kiminori Matsuyama, 1991. "Custom Versus Fashion: Path-Dependence and Limit Cycles in a Random Matching Game," Discussion Papers 1030, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
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