Limited memory can be beneficial for the evolution of cooperation
AbstractWe study a dynamic process where agents in a network interact in a Prisoner’s Dilemma. The network not only mediates interactions, but also information: agents learn from their own experience and that of their neighbors in the network about the past behavior of others. Each agent can only memorize the last h periods. Evolution selects among three preference types: altruists, defectors and conditional cooperators. We show - relying on simulation techniques - that the probability of reaching a cooperative state does not relate monotonically to the size of memory h. In fact it turns out to be optimal from a population viewpoint that there is a finite bound on agents’ memory capacities. We also show that it is the interplay of local interactions, direct and indirect reputation and memory constraints that is crucial for the emergence of cooperation. Taken by itself, none of these mechanisms is sufficient to yield cooperation.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2010-25.
Length: 32 pages
Date of creation: Jul 2010
Date of revision:
Publication status: Published by Ivie
evolution; reputation; bounded memory; cooperation.;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-06 (All new papers)
- NEP-CBE-2010-08-06 (Cognitive & Behavioural Economics)
- NEP-CMP-2010-08-06 (Computational Economics)
- NEP-EVO-2010-08-06 (Evolutionary Economics)
- NEP-GTH-2010-08-06 (Game Theory)
- NEP-SOC-2010-08-06 (Social Norms & Social Capital)
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.:
- Ingrid Seinen & Arthur Schram, 2001. "Social Status and Group Norms," Tinbergen Institute Discussion Papers 01-003/1, Tinbergen Institute.
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