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Social diversity reduces the complexity and cost of fostering fairness

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  • Cimpeanu, Theodor
  • Di Stefano, Alessandro
  • Perret, Cedric
  • Han, The Anh

Abstract

Institutions and investors are constantly faced with the challenge of appropriately distributing endowments. No budget is limitless and optimising overall spending without sacrificing positive outcomes has been approached and resolved using several heuristics. To date, prior works have failed to consider how to encourage fairness in a population where social diversity is ubiquitous, and in which investors can only partially observe the population. Herein, by incorporating social diversity in the Ultimatum game through heterogeneous graphs, we investigate the effects of several interference mechanisms which assume incomplete information and flexible standards of fairness. We quantify the role of diversity and show how it reduces the need for information gathering, allowing us to relax a strict, costly interference process. Furthermore, we find that the influence of certain individuals, expressed by different network centrality measures, can be exploited to further reduce spending if minimal fairness requirements are lowered. Our results indicate that diversity changes and opens up novel mechanisms available to institutions wishing to promote fairness. Overall, our analysis provides novel insights to guide institutional policies in socially diverse complex systems.

Suggested Citation

  • Cimpeanu, Theodor & Di Stefano, Alessandro & Perret, Cedric & Han, The Anh, 2023. "Social diversity reduces the complexity and cost of fostering fairness," Chaos, Solitons & Fractals, Elsevier, vol. 167(C).
  • Handle: RePEc:eee:chsofr:v:167:y:2023:i:c:s0960077922012309
    DOI: 10.1016/j.chaos.2022.113051
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    References listed on IDEAS

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    1. Andreia Sofia Teixeira & Francisco C. Santos & Alexandre P. Francisco & Fernando P. Santos & Hiroki Sayama, 2021. "Eliciting Fairness in N-Player Network Games through Degree-Based Role Assignment," Complexity, Hindawi, vol. 2021, pages 1-11, September.
    2. Francisco C. Santos & Marta D. Santos & Jorge M. Pacheco, 2008. "Social diversity promotes the emergence of cooperation in public goods games," Nature, Nature, vol. 454(7201), pages 213-216, July.
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    5. Theodor Cimpeanu & The Anh Han & Francisco C. Santos, 2019. "Exogenous Rewards for Promoting Cooperation in Scale-Free Networks," Papers 1905.04964, arXiv.org, revised May 2019.
    6. Alessandro Di Stefano & Marialisa Scatà & Aurelio La Corte & Pietro Liò & Emanuele Catania & Ermanno Guardo & Salvatore Pagano, 2015. "Quantifying the Role of Homophily in Human Cooperation Using Multiplex Evolutionary Game Theory," PLOS ONE, Public Library of Science, vol. 10(10), pages 1-21, October.
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    1. Theodor Cimpeanu & Francisco C. Santos & The Anh Han, 2023. "Does Spending More Always Ensure Higher Cooperation? An Analysis of Institutional Incentives on Heterogeneous Networks," Dynamic Games and Applications, Springer, vol. 13(4), pages 1236-1255, December.
    2. Yang, Zhengzhi & Zheng, Lei & Perc, Matjaž & Li, Yumeng, 2024. "Interaction state Q-learning promotes cooperation in the spatial prisoner's dilemma game," Applied Mathematics and Computation, Elsevier, vol. 463(C).

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