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Evolution of Cooperative Networks and the Emergence of Leadership

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  • M.G. Zimmermann, V. M. Eguiluz

Abstract

A generic property of biological, social and economical networks is their ability to evolve in time, creating or supressing links. We model this situation with an adaptive network of agents playing a Prisoner's Dilemma game. Each agent plays with its local neighbors, collects an aggregate payoff and imitates the strategy of its best neighbor. Furthermore we allow the agents adapt their local neighborhood according to their satisfaction level and the strategy played. Therefore each agent will have diverse environments that induces an interesting dynamics in the cooperation fraction of the whole network. In the absence of noise, a steady state is always reached, where the strategies and the neighborhoods remain stationary, and where for a wide range of parameter values, an almost full cooperative outcome is obtained. The topology of the network in these states reveals that cooperators with a large number of connections emerges. These "leaders" are shown to be very important in understanding the global stability of the final steady state. If the "leaders" are perturbated, then global cascades arise and the system oscillates between the nearly full defection network and the fully cooperative outcome, before settling again in a nearly fully cooperative outcome.

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Bibliographic Info

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 171.

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Date of creation: 01 Apr 2001
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Handle: RePEc:sce:scecf1:171

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Web page: http://www.econometricsociety.org/conference/SCE2001/SCE2001.html
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Keywords: Cooperation -- Evolutionary Game Theory -- Stochastic Networks -- Prisoner Dilemma;

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  1. Sumit Joshi, 2000. "Networks of Collaboration in Oligopoly," Econometric Society World Congress 2000 Contributed Papers 0623, Econometric Society.
  2. Oliver Kirchkamp, 1994. "Spatial Evolution of Automata in the Prisoners' Dilemma," Game Theory and Information 9403003, EconWPA, revised 18 May 1994.
  3. Dan Ashlock & Mark D. Smucker & E. Ann Stanley & Leigh Tesfatsion, 1995. "Preferential Partner Selection in an Evolutionary Study of Prisoner's Dilemma," Game Theory and Information 9501002, EconWPA, revised 20 Jan 1995.
  4. L. Blume, 2010. "The Statistical Mechanics of Strategic Interaction," Levine's Working Paper Archive 488, David K. Levine.
  5. Young, H.P., 1999. "Diffusion in Social Networks," Papers 2, Brookings Institution - Working Papers.
  6. Hirshlifer, David & Rassmusen, Eric, 1989. "Cooperation in a repeated prisoners' dilemma with ostracism," Journal of Economic Behavior & Organization, Elsevier, vol. 12(1), pages 87-106, August.
  7. Cont, Rama & Bouchaud, Jean-Philipe, 2000. "Herd Behavior And Aggregate Fluctuations In Financial Markets," Macroeconomic Dynamics, Cambridge University Press, vol. 4(02), pages 170-196, June.
  8. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, January.
  9. Michael D. Cohen & Rick L. Riolo & Robert Axelrod, 1999. "The Emergence of Social Organization in the Prisoner's Dilemma: How Context-Preservation and Other Factors Promote Cooperation," Working Papers 99-01-002, Santa Fe Institute.
  10. Kirman, Alan, 1993. "Ants, Rationality, and Recruitment," The Quarterly Journal of Economics, MIT Press, vol. 108(1), pages 137-56, February.
  11. repec:cup:macdyn:v:4:y:2000:i:2:p:170-96 is not listed on IDEAS
  12. Rama Cont & Jean-Philippe Bouchaud, 1997. "Herd behavior and aggregate fluctuations in financial markets," Science & Finance (CFM) working paper archive 500028, Science & Finance, Capital Fund Management.
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