The persistence of inferior cultural-institutional conventions
AbstractOur theory of cultural-institutional persistence and innovation is based on uncoordinated updating of individual social norms and contracts, so that both culture and institutions are endogenous. We explain why Pareto-dominated cultural-institutional configurations may persist over long periods and how transitions may nonetheless occur. Unlike models in which elites may impose inferior institutions or cultures as a self-interested distributional strategies, in our model, the exercise of elite power plays no role in either persistence or innovation, and transitions occur endogenously. We show that persistence will be the greater the more inferior is the Pareto-dominated configuration and the more rational and individualistic is the population.
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Bibliographic InfoPaper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 157.
Date of creation: Nov 2012
Date of revision:
endogenous institutions; endogenous social norms; cultural-institutional persistence; evolutionary game theory;
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
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