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Helping Cost, Assortative Matching and Production Cycles in the Dynamic Humean Farmer Game

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  • Raul V. Fabella

    (School of Economics, University of the Philippines Diliman)

Abstract

We reformulate the Humean farmer game on the basis of random assignment of advantage and the cost e of helping in another’s harvest. The result is a game that is a coordination game if e ½ which allows a joint treatment of the two interpretations of the Humean farmer game. We employ two behavioral types initially: the conditionally cooperative (H-type) and the free riding (NH-type). We employ replication dynamics with assortative matching and multiple production cycles to investigate which evolutionarily stable (EE) monomorphic population it engenders. We show that the ceiling for effort cost e to support an EE monomorphic H-type population in the Stag-Hunt game rises to (1 + b)/2 from 1/2 in pure random matching case. As the assortative index b rises, the basin of attraction of the EE H-type solution rises. When the assortative matching is perfect (b = 1), in the Stag-Hunt game version (0 ½), s* = 0 is EE iff e > (3/4) while s** = 1 is EE.

Suggested Citation

  • Raul V. Fabella, 2015. "Helping Cost, Assortative Matching and Production Cycles in the Dynamic Humean Farmer Game," UP School of Economics Discussion Papers 201513, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:201513
    as

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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/1483
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Humean farmer game; helping cost; assortative matching; production cycles; emergence of cooperation;
    All these keywords.

    JEL classification:

    • B0 - Schools of Economic Thought and Methodology - - General
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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