This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Assortative Interactions and Endogenous Stratification

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Susan Lee
Abstract

An evolutionary model is used to examine how the presence of strategic risk and exclusion in interactions on the basis of economic class differences (assortive matching) can explain persistent inequality. A large population of agents is matched asynchronously according to a wealth-weighted probability distribution to play a 2 x 2 coordination game with a Pareto dominant equilibrium and a risk dominant equilibrium. Best response dynamics eventually select the inferior equilibrium, but with sufficiently strong exclusion inequality arises and persists for arbitrarily long finite periods. In particular, exclusion increases the probability that an upper class will arise. In an environment with strategic risk, exclusion helps preserve confidence in the good equilibrium strategy but also perpetuates inequality.

Download Info
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Publisher Info
Paper provided by Santa Fe Institute in its series Working Papers with number 99-08-056.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Aug 1999
Date of revision:
Handle: RePEc:wop:safiwp:99-08-056

Contact details of provider:
Postal: 1399 Hyde Park Road, Santa Fe, New Mexico 87501
Web page: http://www.santafe.edu/sfi/publications/working-papers.html
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).

Related research
Keywords: Endogenous interactions; stratification; evolution of conventions;

Other versions of this item:

This paper has been announced in the following NEP Reports: References listed on IDEAS
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.:
  1. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
  2. Giovanni Ponti & Robert M. Seymour, . "Evolutionary Stability of Inequality Structures," University of California at Santa Barbara, Economics Working Paper Series 2-98, Department of Economics, UC Santa Barbara.
  3. repec:att:wimass:199521 is not listed on IDEAS
  4. Vega-Redondo Fernando, 1993. "Competition and Culture in an Evolutionary Process of Equilibrium Selection: A Simple Example," Games and Economic Behavior, Elsevier, vol. 5(4), pages 618-631, October. [Downloadable!] (restricted)
  5. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January. [Downloadable!] (restricted)
    Other versions:
  6. repec:att:wimass:199711r is not listed on IDEAS
  7. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September. [Downloadable!] (restricted)
  8. George J. Mailath & Larry Samuelson & Avner Shaked, 1997. "Endogenous Interactions," CARESS Working Papres endo-one, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences. [Downloadable!]
  9. Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July. [Downloadable!] (restricted)
  10. Boylan, Richard T., 1990. "Laws of Large Numbers for Dynamical Systems with Randomly Matched Individuals," Working Papers 748, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  11. Ulrich Schwalbe & Siegfried K. Berninghaus, 1996. "Conventions, local interaction, and automata networks," Journal of Evolutionary Economics, Springer, vol. 6(3), pages 297-312.
  12. Anderlini, Luca & Ianni, Antonella, 1996. "Path Dependence and Learning from Neighbors," Games and Economic Behavior, Elsevier, vol. 13(2), pages 141-177, April. [Downloadable!] (restricted)
    Other versions:
  13. William A. Brock & Steven N. Durlauf, 1995. "Discrete Choice with Social Interactions I: Theory," Working Papers 95-10-084, Santa Fe Institute.
    Other versions:
  14. repec:att:wimass:199612r is not listed on IDEAS
  15. repec:att:wimass:199711 is not listed on IDEAS
  16. Myerson, Roger B. & Pollock, Gregory B. & Swinkels, Jeroen M., 1991. "Viscous population equilibria," Games and Economic Behavior, Elsevier, vol. 3(1), pages 101-109, February. [Downloadable!] (restricted)
    Other versions:
  17. Leigh TESFATSION, 1995. "A Trade Network Game With Endogenous Partner Selection," Economic Report 36, Iowa State University Department of Economics. [Downloadable!]
    Other versions:
  18. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January. [Downloadable!] (restricted)
  19. Steven N. Durlauf, 1997. "The Memberships Theory of Inequality: Ideas and Implications," Research in Economics 97-05-047e, Santa Fe Institute.
  20. Boylan, Richard T., 1992. "Laws of large numbers for dynamical systems with randomly matched individuals," Journal of Economic Theory, Elsevier, vol. 57(2), pages 473-504, August. [Downloadable!] (restricted)
  21. Vega-Redondo Fernando, 1995. "Expectations, Drift, and Volatility in Evolutionary Games," Games and Economic Behavior, Elsevier, vol. 11(2), pages 391-412, November. [Downloadable!] (restricted)
  22. Samuelson Larry, 1994. "Stochastic Stability in Games with Alternative Best Replies," Journal of Economic Theory, Elsevier, vol. 64(1), pages 35-65, October. [Downloadable!] (restricted)
  23. Eshel, Ilan & Samuelson, Larry & Shaked, Avner, 1998. "Altruists, Egoists, and Hooligans in a Local Interaction Model," American Economic Review, American Economic Association, vol. 88(1), pages 157-79, March. [Downloadable!] (restricted)
  24. George J. Mailath & Larry Samuelson & Avner Shaked, . "Correlated Equilibria and Local Interactions," CARESS Working Papres 97-6, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences. [Downloadable!]
    Other versions:
Full references

Statistics
Access and download statistics

Did you know? LogEc provides statistical analysis about downloads from this service (and others).

This page was last updated on 2009-11-20.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.