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Cooperation through Imitation and Exclusion in Networks

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  • Mengel, Friederike
  • Fosco, Constanza

Abstract

We develop a simple model to study the coevolution of interaction structures and action choices in prisoners' dilemma games. Agents are boundedly rational and choose both actions and interaction partners via payoff-biased imitation. The dynamics of imitation and exclusion yields polymorphic outcomes under a wide range of parameters. Whenever agents hold some information beyond their interaction neighbors defectors and cooperators always coexist in disconnected components. Otherwise polymorphic networks can emerge with a center of cooperators and a periphery of defectors. Any stochastically stable state has at most two disconnected components. Simulations confirm our analytical results and show that the share of cooperators increases with the speed at which the network evolves, increases with the radius of interaction and decreases with the radius of information.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5258.

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Date of creation: 10 Oct 2007
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Handle: RePEc:pra:mprapa:5258

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Keywords: Game Theory; Cooperation; Imitation Learning; Network Formation;

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Citations

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Cited by:
  1. Romero, José Gabriel & Kovarik, Jaromir & Mengel, Friederike, 2012. "Learning in Network Games," IKERLANAK, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I Ikerlanak;2012-66, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  2. Ludo Waltman & Nees Eck & Rommert Dekker & Uzay Kaymak, 2013. "An Evolutionary Model of Price Competition Among Spatially Distributed Firms," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 42(4), pages 373-391, December.
  3. Mengel, Friederike, 2007. "Conformism and Cooperation in a Local Interaction Model," MPRA Paper 4051, University Library of Munich, Germany.
  4. Tsakas, Nikolas, 2012. "Naive learning in social networks: Imitating the most successful neighbor," MPRA Paper 37796, University Library of Munich, Germany.
  5. Cui, Zhiwei, 2014. "More neighbors, more efficiency," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 40(C), pages 103-115.
  6. Wilson, James & Hill, J. & Kersula, M. & Wilson, C.L. & Whitsel, L. & Yan, L. & Acheson, J. & Chen, Y. & Cleaver, C. & Congdon, C. & Hayden, A. & Hayes, P. & Johnson, T. & Morehead, G. & Steneck, R. &, 2013. "Costly information and the evolution of self-organization in a small, complex economy," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 90(S), pages S76-S93.
  7. Brañas Garza, Pablo & Espinosa Alejos, María Paz & Cobo Reyes, Ramón & Jiménez, Natalia & Ponti, Giovanni, 2006. "Altruism in the (Social) Network," DFAEII Working Papers 2006-04, University of the Basque Country - Department of Foundations of Economic Analysis II.
  8. Daniel Ladley & Ian Wilkinson & Louise Young, 2013. "The Evolution Of Cooperation In Business: Individual Vs. Group Incentives," Discussion Papers in Economics 13/14, Department of Economics, University of Leicester.
  9. Kovarik, Jaromir & Espinosa Alejos, María Paz & Brañas Garza, Pablo & Jiménez, Natalia & Ponti, Giovanni & Cobo Reyes, Ramón, 2009. "Altruism and Social Integration," DFAEII Working Papers 2009-05, University of the Basque Country - Department of Foundations of Economic Analysis II.
  10. Nikolas Tsakas, 2013. "Diffusion by Imitation: The Importance of Targeting Agents," 2013 Papers, Job Market Papers pts99, Job Market Papers.

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