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The evolution of cheating in asymmetric contests

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Author Info

  • Aleksander Berentsen
  • Esther Bruegger
  • Simon Loertscher

Abstract

Consider a society where all agents initially play "fair" and one agent invents a "cheating" strategy such as doping in sports. Which factors determine the success of the new cheating strategy? In order to study this question we consider an evolutionary game with local information. Three factors determine the imitation dynamics of the model: the location and the type of the innovator, the distribution of types, and the information available to the agents. In particular we find that the economy is more likely to end up in a state where all agents cheat if the innovator is of low type or when the agents are maximally segregated.

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Bibliographic Info

Paper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 314.

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Date of creation: Feb 2007
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Handle: RePEc:zur:iewwpx:314

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Keywords: Evolutionary game theory; imitation dynamics; heterogeneity; local information; global interaction;

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References

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  1. Fernando Vega-Redondo, 1997. "The Evolution of Walrasian Behavior," Econometrica, Econometric Society, vol. 65(2), pages 375-384, March.
  2. Alos-Ferrer, Carlos & Ania, Ana B. & Schenk-Hoppe, Klaus Reiner, 2000. "An Evolutionary Model of Bertrand Oligopoly," Games and Economic Behavior, Elsevier, vol. 33(1), pages 1-19, October.
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Cited by:
  1. Kräkel, Matthias, 2005. "Doping in Contest-Like Situations," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 46, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  2. Kräkel, Matthias, 2006. "Doping and Cheating in Contest-Like Situations," IZA Discussion Papers 2059, Institute for the Study of Labor (IZA).

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