Relational goods, private consumption and social poverty traps in an evolutionary game

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Relational goods, private consumption and social poverty traps in an evolutionary game

Author Info

Antoci, Angelo () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)
Russu, Paolo () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)
Vanin, Paolo () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

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Abstract

We investigate how the patterns of consumption and accumulation, as well as the patterns of time allocation and of social interaction, may be influenced by social pressure, i.e., by the choices of others. We display an evolutionary model involving several generations of interacting individuals,in which different patterns may coexist in equilibrium and in which path dependence and critical mass effects play an important role. Bomze's (1983) classification is used to study the properties of this game. We find that social pressure may lead to low welfare traps' with overwork and overconsumption, and that policy may have a role as a coordination device

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Paper provided by Associazione Italiana per la Cultura della Cooperazione e del Non Profit in its series AICCON Working Papers with number 25-2005.

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Length: 21 pages
Date of creation: 13 Dec 2005
Date of revision:
Handle: RePEc:ris:aiccon:2005_025

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Find related papers by JEL classification:
B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
D62 - Microeconomics - - Welfare Economics - - - Externalities
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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