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Cooperation and cultural transmission in a coordination game

  • Calabuig, Vicente
  • Olcina, Gonzalo

The aim of this paper is to analyze if cooperation can be the product of cultural evolution in a two-stage coordination game, consisting of a production stage followed by a negotiation phase. We present an overlapping generations model with cultural transmission of preferences where the distribution of preferences in the population and the strategies are determined endogenously and simultaneously. There are several groups in the society; some of them play cooperatively and others do not. Socialization takes place inside the group, but there is a positive rate of migration among groups which parents anticipate. Our main result shows that all groups converge to the cooperative equilibrium.

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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 72 (2009)
Issue (Month): 1 (October)
Pages: 188-201

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Handle: RePEc:eee:jeborg:v:72:y:2009:i:1:p:188-201
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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  1. Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
  2. Bisin, Alberto & Verdier, Thierry, 1998. "On the cultural transmission of preferences for social status," Journal of Public Economics, Elsevier, vol. 70(1), pages 75-97, October.
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  16. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
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