Segregation and Strategic Neighborhood Interaction
AbstractWe introduce social interactions into the Schelling model of residential choice. These social interactions take the form of a Prisoner's Dilemma game played with neighbors. First, we study the Schelling model over a wide range of utility functions and then proceed to study a spatial Prisoner's Dilemma model. These models provide a benchmark for studying a combined model with preferences over like-typed neighbors and payoffs in the spatial Prisoner's Dilemma game. We study this combined model both analytically and using agent-based simulations. We find that the presence of these additional social interactions may increase or decrease segregation compared to the standard Schelling model. If the social interactions result in cooperation then segregation is reduced, otherwise it is increased.
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Bibliographic InfoPaper provided by Department of Economics, Rutgers University, Newark in its series Working Papers Rutgers University, Newark with number 2007-001.
Length: 37 pages
Date of creation: Apr 2007
Date of revision:
Schelling Tipping Model; Spatial Prisoner's Dilemma; Cooperation; Segregation;
Other versions of this item:
- Jason M Barr & Troy Tassier, 2008. "Segregation and Strategic Neighborhood Interaction," Eastern Economic Journal, Palgrave Macmillan, vol. 34(4), pages 480-503.
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-09 (All new papers)
- NEP-GEO-2007-04-09 (Economic Geography)
- NEP-SOC-2007-04-09 (Social Norms & Social Capital)
- NEP-UPT-2007-04-09 (Utility Models & Prospect Theory)
- NEP-URE-2007-04-09 (Urban & Real Estate Economics)
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.:
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