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The co-evolution of cooperation and defection under local interaction and endogenous network formation

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  • Bilancini, Ennio
  • Boncinelli, Leonardo

Abstract

The Prisoner's Dilemma is a typical structure of interaction in human societies. In spite of a long tradition dealing with the matter from different perspectives, the emergence of cooperation or defection still remains a controversial issue from both an empirical and a theoretical point of view. In this paper we propose a local interaction model with endogenous network formation, in the attempt to provide a reasonable account of emerging behaviors. A population of boundedly rational agents repeatedly chooses to cooperate or defect. Each agent's action affects only her interacting mates, according to a network of relationships. Agents are randomly given the possibility to substitute undesired mates with unknown ones. Full cooperation, full defection and coexistence of both cooperation and defection in homogeneous clusters are possible outcomes of the model. Computer-based simulations are applied to investigate under what circumstances either case is most likely.

Suggested Citation

  • Bilancini, Ennio & Boncinelli, Leonardo, 2009. "The co-evolution of cooperation and defection under local interaction and endogenous network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 186-195, May.
  • Handle: RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:186-195
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    References listed on IDEAS

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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    2. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
    3. Bergstrom, Theodore C & Stark, Oded, 1993. "How Altruism Can Prevail in an Evolutionary Environment," American Economic Review, American Economic Association, vol. 83(2), pages 149-155, May.
    4. Gintis, Herbert, 2004. "Modeling cooperation among self-interested agents: a critique," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(6), pages 695-714, December.
    5. Keser, Claudia & van Winden, Frans, 2000. " Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
    6. Tackseung Jun & Rajiv Sethi, 2007. "Neighborhood structure and the evolution of cooperation," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 623-646, October.
    7. 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 157-179, March.
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    Cited by:

    1. Ennio Bilancini & Leonardo Boncinelli & Jiabin Wu, 2016. "The Interplay of Cultural Aversion and Assortativity for the Emergence of Cooperation," Center for Economic Research (RECent) 121, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    2. Ludo Waltman & Nees Eck & Rommert Dekker & Uzay Kaymak, 2013. "An Evolutionary Model of Price Competition Among Spatially Distributed Firms," Computational Economics, Springer;Society for Computational Economics, vol. 42(4), pages 373-391, December.
    3. Rezaei, Golriz & Kirley, Michael, 2012. "Dynamic social networks facilitate cooperation in the N-player Prisoner’s Dilemma," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(23), pages 6199-6211.
    4. Ennio Bilancini & Leonardo Boncinelli & Jiabin Wuz, 2016. "The Interplay of Cultural Aversion and Assortativity for the Emergence of Cooperation," Department of Economics 0084, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    5. Nicole Immorlica & Brendan Lucier & Brian W. Rogers, 2010. "Emergence of Cooperation in ANonymous Social Networks through Social Capital," 2010 Meeting Papers 1134, Society for Economic Dynamics.
    6. repec:eee:eecrev:v:102:y:2018:i:c:p:1-18 is not listed on IDEAS

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