IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v140y2023icp410-430.html
   My bibliography  Save this article

Linking friction, social coordination and the speed of evolution

Author

Listed:
  • Cui, Zhiwei

Abstract

We consider a model of social coordination and network formation where agents decide on an action in a coordination game and on whom to form costly links with. We explore the role of linking friction, where an agent cannot change all of her links simultaneously when choosing an alternative linking decision. Given linking friction, interaction structures are not fully flexible. We introduce a new solution concept of static equilibria, local Nash equilibria, and find that the set of local Nash equilibria may include action-heterogenous strategy profiles. Furthermore, risk-dominant strategy profiles are stochastically stable when linking friction is restrictive, and payoff-dominant strategy profiles are stochastically stable when linking friction becomes less restrictive. More importantly, linking friction can greatly accelerate the emergence of payoff-dominant strategy profiles.

Suggested Citation

  • Cui, Zhiwei, 2023. "Linking friction, social coordination and the speed of evolution," Games and Economic Behavior, Elsevier, vol. 140(C), pages 410-430.
    • Handle: RePEc:eee:gamebe:v:140:y:2023:i:c:p:410-430
    DOI: 10.1016/j.geb.2023.04.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825623000623
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.geb.2023.04.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blume Lawrence E., 1995. "The Statistical Mechanics of Best-Response Strategy Revision," Games and Economic Behavior, Elsevier, vol. 11(2), pages 111-145, November.
    2. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
    3. Glenn Ellison, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 17-45.
    4. Jonathan Newton, 2018. "Evolutionary Game Theory: A Renaissance," Games, MDPI, vol. 9(2), pages 1-67, May.
    5. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-1071, September.
    6. Robson, Arthur J. & Vega-Redondo, Fernando, 1996. "Efficient Equilibrium Selection in Evolutionary Games with Random Matching," Journal of Economic Theory, Elsevier, vol. 70(1), pages 65-92, July.
    7. Newton, Jonathan & Angus, Simon D., 2015. "Coalitions, tipping points and the speed of evolution," Journal of Economic Theory, Elsevier, vol. 157(C), pages 172-187.
    8. Cui, Zhiwei & Shi, Fei, 2022. "Bandwagon effects and constrained network formation," Games and Economic Behavior, Elsevier, vol. 134(C), pages 37-51.
    9. Bhaskar, V. & Vega-Redondo, Fernando, 2004. "Migration and the evolution of conventions," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 397-418, November.
    10. Sawa, Ryoji, 2014. "Coalitional stochastic stability in games, networks and markets," Games and Economic Behavior, Elsevier, vol. 88(C), pages 90-111.
    11. Jackson, Matthew O. & Watts, Alison, 2002. "On the formation of interaction networks in social coordination games," Games and Economic Behavior, Elsevier, vol. 41(2), pages 265-291, November.
    12. Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July.
    13. Dieckmann, Tone, 1999. "The evolution of conventions with mobile players," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 93-111, January.
    14. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    15. repec:esx:essedp:747 is not listed on IDEAS
    16. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
    17. Newton, Jonathan, 2012. "Coalitional stochastic stability," Games and Economic Behavior, Elsevier, vol. 75(2), pages 842-854.
    18. Newton, Jonathan & Sercombe, Damian, 2020. "Agency, potential and contagion," Games and Economic Behavior, Elsevier, vol. 119(C), pages 79-97.
    19. Anwar, A. W., 2002. "On the Co-existence of Conventions," Journal of Economic Theory, Elsevier, vol. 107(1), pages 145-155, November.
    20. Norman, Thomas W.L., 2009. "Rapid evolution under inertia," Games and Economic Behavior, Elsevier, vol. 66(2), pages 865-879, July.
    21. Goyal, Sanjeev & Vega-Redondo, Fernando, 2005. "Network formation and social coordination," Games and Economic Behavior, Elsevier, vol. 50(2), pages 178-207, February.
    22. Jonathan Newton, 2021. "Conventions under Heterogeneous Behavioural Rules [Adaptive Play in Multiplayer Bargaining Situations]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(4), pages 2094-2118.
    23. 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.
    24. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    25. Naono, Miharu, 2022. "Cost heterogeneity and the persistence of bilingualism," Games and Economic Behavior, Elsevier, vol. 136(C), pages 325-339.
    26. Levine, David Knudsen & Modica, Salvatore, 2016. "Dynamics in stochastic evolutionary models," Theoretical Economics, Econometric Society, vol. 11(1), January.
    27. Ennio Bilancini & Leonardo Boncinelli, 2018. "Social coordination with locally observable types," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 975-1009, June.
    28. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2014. "Imitation and the role of information in overcoming coordination failures," Games and Economic Behavior, Elsevier, vol. 87(C), pages 397-411.
    29. Cui, Zhiwei & Weidenholzer, Simon, 2021. "Lock-in through passive connections," Journal of Economic Theory, Elsevier, vol. 192(C).
    30. Newton, Jonathan & Wait, Andrew & Angus, Simon D., 2019. "Watercooler chat, organizational structure and corporate culture," Games and Economic Behavior, Elsevier, vol. 118(C), pages 354-365.
    31. Alos-Ferrer, Carlos & Ania, Ana B., 2001. "Local equilibria in economic games," Economics Letters, Elsevier, vol. 70(2), pages 165-173, February.
    32. Oechssler, Jorg, 1997. "Decentralization and the coordination problem," Journal of Economic Behavior & Organization, Elsevier, vol. 32(1), pages 119-135, January.
    33. Staudigl, Mathias & Weidenholzer, Simon, 2014. "Constrained interactions and social coordination," Journal of Economic Theory, Elsevier, vol. 152(C), pages 41-63.
    34. Pin, Paolo & Weidenholzer, Elke & Weidenholzer, Simon, 2017. "Constrained mobility and the evolution of efficient outcomes," Journal of Economic Dynamics and Control, Elsevier, vol. 82(C), pages 165-175.
    35. Cui, Zhiwei & Zhai, Jian, 2010. "Escape dynamics and equilibria selection by iterative cycle decomposition," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1015-1029, November.
    36. Simon Weidenholzer, 2010. "Coordination Games and Local Interactions: A Survey of the Game Theoretic Literature," Games, MDPI, vol. 1(4), pages 1-35, November.
    37. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2008. "Contagion and efficiency," Journal of Economic Theory, Elsevier, vol. 143(1), pages 251-274, November.
    38. Hojman, Daniel A. & Szeidl, Adam, 2006. "Endogenous networks, social games, and evolution," Games and Economic Behavior, Elsevier, vol. 55(1), pages 112-130, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cui, Zhiwei & Shi, Fei, 2022. "Bandwagon effects and constrained network formation," Games and Economic Behavior, Elsevier, vol. 134(C), pages 37-51.
    2. Bilancini, Ennio & Boncinelli, Leonardo, 2022. "The evolution of conventions in the presence of social competition," Games and Economic Behavior, Elsevier, vol. 133(C), pages 50-57.
    3. Simon Weidenholzer, 2010. "Coordination Games and Local Interactions: A Survey of the Game Theoretic Literature," Games, MDPI, vol. 1(4), pages 1-35, November.
    4. Staudigl, Mathias & Weidenholzer, Simon, 2014. "Constrained interactions and social coordination," Journal of Economic Theory, Elsevier, vol. 152(C), pages 41-63.
    5. Ennio Bilancini & Leonardo Boncinelli, 2018. "Social coordination with locally observable types," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 975-1009, June.
    6. Ennio Bilancini & Leonardo Boncinelli, 2015. "Social coordination with locally observable types," Department of Economics 0051, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    7. Ennio Bilancini & Leonardo Boncinelli, 2020. "The evolution of conventions under condition-dependent mistakes," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(2), pages 497-521, March.
    8. Zhiwei Cui, 2019. "Matching, Imitation, and Coordination in Networks," Dynamic Games and Applications, Springer, vol. 9(1), pages 47-67, March.
    9. Pin, Paolo & Weidenholzer, Elke & Weidenholzer, Simon, 2017. "Constrained mobility and the evolution of efficient outcomes," Journal of Economic Dynamics and Control, Elsevier, vol. 82(C), pages 165-175.
    10. Ge Jiang & Simon Weidenholzer, 2017. "Local interactions under switching costs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(3), pages 571-588, October.
    11. Cui, Zhiwei & Weidenholzer, Simon, 2021. "Lock-in through passive connections," Journal of Economic Theory, Elsevier, vol. 192(C).
    12. Jonathan Newton, 2018. "Evolutionary Game Theory: A Renaissance," Games, MDPI, vol. 9(2), pages 1-67, May.
    13. Francesco Feri & Miguel Meléndez-Jiménez, 2013. "Coordination in evolving networks with endogenous decay," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 955-1000, November.
    14. Matros, Alexander & Moser, Scott, 2015. "Coordination in a changing environment," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 64-84.
    15. Lu, Feifei, 2023. "Local information hinders coordination in endogenous networks," Economics Letters, Elsevier, vol. 223(C).
    16. Sawa, Ryoji, 2021. "A stochastic stability analysis with observation errors in normal form games," Games and Economic Behavior, Elsevier, vol. 129(C), pages 570-589.
    17. Hsiao-Chi Chen & Yunshyong Chow & Li-Chau Wu, 2013. "Imitation, local interaction, and coordination," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(4), pages 1041-1057, November.
    18. Sanjeev Goyal & Fernando Vega-Redondo, 2000. "Learning, Network Formation and Coordination," Tinbergen Institute Discussion Papers 00-093/1, Tinbergen Institute.
    19. Cui, Zhiwei & Wang, Rui, 2016. "Collaboration in networks with randomly chosen agents," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 129-141.
    20. Eugenio Vicario, 2021. "Imitation and Local Interactions: Long Run Equilibrium Selection," Games, MDPI, vol. 12(2), pages 1-19, April.

    More about this item

    Keywords

    Social coordination; Network formation; Learning; Linking friction; Waiting time;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:140:y:2023:i:c:p:410-430. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.