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The Open Method of Coordination (OMC) as an Evolutionary Learning Process

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  • Ania, Ana B.
  • Wagener, Andreas

Abstract

We interpret the Open Method of Coordination (OMC), recently adopted by the EU as a mode of governance in the area of social policy and other fields, as an imitative learning dynamics of the type considered in evolutionary game theory. The best-practise feature and the iterative design of the OMC correspond to the behavioral rule "imitate the best." In a redistribution game with utilitarian governments and mobile welfare beneficiaries, we compare the outcomes of imitative behavior (long-run evolutionary equilibrium), decentralized best-response behavior (Nash equilibrium), and coordinated policies. The main result is that the OMC allows policy coordination on a strict subset of the set of Nash equilibria, favoring in particular coordination on intermediate values of the policy instrument.

Suggested Citation

  • Ania, Ana B. & Wagener, Andreas, 2009. "The Open Method of Coordination (OMC) as an Evolutionary Learning Process," Hannover Economic Papers (HEP) dp-416, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-416
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    3. Grégoire ROTA-GRAZIOSI, 2016. "Implementing Tax Coordination and Harmonization through Voluntary Commitment," Working Papers P181, FERDI.
    4. Verena Hachmann, 2011. "From Mutual Learning to Joint Working: Europeanization Processes in the INTERREG B Programmes," European Planning Studies, Taylor & Francis Journals, vol. 19(8), pages 1537-1555, August.
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    More about this item

    Keywords

    Open Method of Coordination; Finite-population Evolutionarily Stable Strategy; Imitation; Mobility; Redistribution;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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