IDEAS home Printed from https://ideas.repec.org/a/gam/jgames/v10y2019i2p16-d218388.html
   My bibliography  Save this article

Investigating Peer and Sorting Effects within an Adaptive Multiplex Network Model

Author

Listed:
  • Francesca Lipari

    (Department of Law and Economics, LUMSA University, 00193 Rome, Italy)

  • Massimo Stella

    (Complex Science Consulting, 73100 Lecce, Italy)

  • Alberto Antonioni

    (Department of Mathematics, Carlos III University of Madrid, 28911 Leganés, Spain)

Abstract

Individuals have a strong tendency to coordinate with all their neighbors on social and economics networks. Coordination is often influenced by intrinsic preferences among the available options, which drive people to associate with similar peers, i.e., homophily. Many studies reported that behind coordination game equilibria there is the individuals’ heterogeneity of preferences and that such heterogeneity is given a priori. We introduce a new mechanism which allows us to analyze the issue of heterogeneity from a cultural evolutionary point of view. Our framework considers agents interacting on a multiplex network who deal with coordination issues using social learning and payoff-driven dynamics. Agents form their heterogeneous preference through learning on one layer and they play a pure coordination game on the other layer. People learn from their peers that coordination is good and they also learn how to reach it either by conformism behavior or sorting strategy. We find that the presence of the social learning mechanism explains the rising and the endurance of a segregated society when members are diverse. Knowing how culture affects the ability to coordinate is useful for understanding how to reach social welfare in a diverse society.

Suggested Citation

  • Francesca Lipari & Massimo Stella & Alberto Antonioni, 2019. "Investigating Peer and Sorting Effects within an Adaptive Multiplex Network Model," Games, MDPI, vol. 10(2), pages 1-12, March.
  • Handle: RePEc:gam:jgames:v:10:y:2019:i:2:p:16-:d:218388
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-4336/10/2/16/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-4336/10/2/16/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hernández, Penélope & Muñoz-Herrera, Manuel & Sánchez, Ángel, 2013. "Heterogeneous network games: Conflicting preferences," Games and Economic Behavior, Elsevier, vol. 79(C), pages 56-66.
    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. Arno Riedl & Ingrid M. T. Rohde & Martin Strobel, 2016. "Efficient Coordination in Weakest-Link Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(2), pages 737-767.
    4. 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.
    5. Arun Advani & Bryony Reich, 2015. "Melting pot or salad bowl: the formation of heterogeneous communities," IFS Working Papers W15/30, Institute for Fiscal Studies.
    6. Hong, Lu & Page, Scott E., 2001. "Problem Solving by Heterogeneous Agents," Journal of Economic Theory, Elsevier, vol. 97(1), pages 123-163, March.
    7. Sáez-Martı´, Maria & Zenou, Yves, 2012. "Cultural transmission and discrimination," Journal of Urban Economics, Elsevier, vol. 72(2), pages 137-146.
    8. Goyal, Sanjeev & Vega-Redondo, Fernando, 2005. "Network formation and social coordination," Games and Economic Behavior, Elsevier, vol. 50(2), pages 178-207, February.
    9. Lea Ellwardt & Penélope Hernández & Guillem Martínez-Canovas & Manuel Muñoz-Herrera, 2014. "Conflict and segregation in networks: An experiment on the interplay between individual preferences and social influence," Discussion Papers in Economic Behaviour 0114, University of Valencia, ERI-CES.
    10. Giuseppe Attanasi & Astrid Hopfensitz & Emiliano Lorini & Frederic Moisan, 2016. "Social connectedness improves co-ordination on individually costly, efficient outcomes," Post-Print hal-03188214, HAL.
    11. Daniel J. Benjamin & James J. Choi & A. Joshua Strickland, 2010. "Social Identity and Preferences," American Economic Review, American Economic Association, vol. 100(4), pages 1913-1928, September.
    12. Gary Charness & Luca Rigotti & Aldo Rustichini, 2007. "Individual Behavior and Group Membership," American Economic Review, American Economic Association, vol. 97(4), pages 1340-1352, September.
    13. Vincent Buskens & Chris Snijders, 2016. "Effects of Network Characteristics on Reaching the Payoff-Dominant Equilibrium in Coordination Games: A Simulation study," Dynamic Games and Applications, Springer, vol. 6(4), pages 477-494, December.
    14. Van Huyck, John B. & Cook, Joseph P. & Battalio, Raymond C., 1997. "Adaptive behavior and coordination failure," Journal of Economic Behavior & Organization, Elsevier, vol. 32(4), pages 483-503, April.
    15. Simon Haenni & Guilherme Lichand, 2020. "Harming to signal: child marriage vs. public donations in Malawi," IEW - Working Papers 348, Institute for Empirical Research in Economics - University of Zurich, revised Mar 2021.
    16. Attanasi, Giuseppe & Hopfensitz, Astrid & Lorini, Emiliano & Moisan, Frédéric, 2016. "Social connectedness improves co-ordination on individually costly, efficient outcomes," European Economic Review, Elsevier, vol. 90(C), pages 86-106.
    17. Daniel Zizzo, 2011. "You are not in my boat: common fate and discrimination against outgroup members," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(1), pages 91-103, March.
    18. Alberto Antonioni & Maria Paula Cacault & Rafael Lalive & Marco Tomassini, 2013. "Coordination on Networks: Does Topology Matter?," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-11, February.
    19. Rodriguez, Marko A. & Shinavier, Joshua, 2010. "Exposing multi-relational networks to single-relational network analysis algorithms," Journal of Informetrics, Elsevier, vol. 4(1), pages 29-41.
    20. Roy Chen & Yan Chen, 2011. "The Potential of Social Identity for Equilibrium Selection," American Economic Review, American Economic Association, vol. 101(6), pages 2562-2589, October.
    21. Chen, Yan & Li, Sherry Xin & Liu, Tracy Xiao & Shih, Margaret, 2014. "Which hat to wear? Impact of natural identities on coordination and cooperation," Games and Economic Behavior, Elsevier, vol. 84(C), pages 58-86.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sanjeev Goyal & Penélope Hernández & Guillem Martínez-Cánovas & Frédéric Moisan & Manuel Muñoz-Herrera & Angel Sánchez, 2021. "Integration and diversity," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 387-413, June.
      • Goyal, S. & Hernández, P. & Muñnez-Cánovasz, G. & Moisan, F. & Muñoz-Herrera, M. & Sánchez, A., 2017. "Integration and Diversity," Cambridge Working Papers in Economics 1721, Faculty of Economics, University of Cambridge.
      • Sanjeev Goyal & Pénélope Hernández & Guillem Martínez-Cánovas & Frédéric Moisan & Manuel Muñoz-Herrera & Ángel Sánchez, 2021. "Integration and diversity," Post-Print halshs-03051962, HAL.
      • Sanjeev Goyal & Penelope Hernandez & Guillem Martinez-Canovas & Frederic Moisan & Manuel Munoz-Herrera & Angel Sanchez, 2019. "Integration and Diversity," Working Papers 20190025, New York University Abu Dhabi, Department of Social Science, revised Sep 2020.
      • Sanjeev Goyal & Penélope Hernández & Guillem Martínez-Cánovas & Frederic Moisan & Manuel Muñoz-Herrera & Angel Sánchez, 2021. "Integration and Diversity," Post-Print hal-03188210, HAL.

    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. Sanjeev Goyal & Penélope Hernández & Guillem Martínez-Cánovas & Frédéric Moisan & Manuel Muñoz-Herrera & Angel Sánchez, 2021. "Integration and diversity," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 387-413, June.
      • Goyal, S. & Hernández, P. & Muñnez-Cánovasz, G. & Moisan, F. & Muñoz-Herrera, M. & Sánchez, A., 2017. "Integration and Diversity," Cambridge Working Papers in Economics 1721, Faculty of Economics, University of Cambridge.
      • Sanjeev Goyal & Penélope Hernández & Guillem Martínez-Cánovas & Frederic Moisan & Manuel Muñoz-Herrera & Angel Sánchez, 2021. "Integration and Diversity," Post-Print hal-03188210, HAL.
      • Sanjeev Goyal & Penelope Hernandez & Guillem Martinez-Canovas & Frederic Moisan & Manuel Munoz-Herrera & Angel Sanchez, 2019. "Integration and Diversity," Working Papers 20190025, New York University Abu Dhabi, Department of Social Science, revised Sep 2020.
      • Sanjeev Goyal & Pénélope Hernández & Guillem Martínez-Cánovas & Frédéric Moisan & Manuel Muñoz-Herrera & Ángel Sánchez, 2021. "Integration and diversity," Post-Print halshs-03051962, HAL.
    2. Mathieu Lefebvre & Lucie Martin-Bonnel de Longchamp, 2022. "Knowledge acquisition or incentive to foster coordination? A real-effort weak-link experiment with craftsmen," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 6(S1), pages 93-107, July.
    3. Bronchal, Adrià, 2023. "Better the devil you know: The effects of group identity uncertainty on coordination efficiency," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 634-656.
    4. Sandra Polania-Reyes, 2016. "Disentangling Social Capital: Lab-in-the-Field Evidence on Coordination, Networks, and Cooperation," Artefactual Field Experiments 00565, The Field Experiments Website.
    5. Fuhai Hong & Yohanes E. Riyanto & Ruike Zhang, 2022. "Multidimensional social identity and redistributive preferences: an experimental study," Theory and Decision, Springer, vol. 93(1), pages 151-184, July.
    6. Arno Riedl & Ingrid M. T. Rohde & Martin Strobel, 2021. "Free Neighborhood Choice Boosts Socially Optimal Outcomes in Stag-Hunt Coordination Problem," CESifo Working Paper Series 9012, CESifo.
    7. Afridi, Farzana & Li, Sherry Xin & Ren, Yufei, 2015. "Social identity and inequality: The impact of China's hukou system," Journal of Public Economics, Elsevier, vol. 123(C), pages 17-29.
    8. Chen, Yan & Li, Sherry Xin & Liu, Tracy Xiao & Shih, Margaret, 2014. "Which hat to wear? Impact of natural identities on coordination and cooperation," Games and Economic Behavior, Elsevier, vol. 84(C), pages 58-86.
    9. Daniel J. Benjamin & James J. Choi & Geoffrey Fisher, 2016. "Religious Identity and Economic Behavior," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 617-637, October.
    10. Yang Yang, 2023. "Hukou Identity and Economic Behaviours: A Social Identity Perspective," Erudite Ph.D Dissertations, Erudite, number ph23-02 edited by Catherine Bros & Julie Lochard, February.
    11. Morita, Hodaka & Servátka, Maroš, 2013. "Group identity and relation-specific investment: An experimental investigation," European Economic Review, Elsevier, vol. 58(C), pages 95-109.
    12. Cacault, Maria Paula & Grieder, Manuel, 2019. "How group identification distorts beliefs," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 63-76.
    13. Li, Sherry Xin & de Oliveira, Angela C.M. & Eckel, Catherine, 2017. "Common identity and the voluntary provision of public goods: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 32-46.
    14. Lu, Feifei & Shi, Fei, 2023. "Coordination with heterogeneous interaction constraints," Games and Economic Behavior, Elsevier, vol. 142(C), pages 645-665.
    15. Tom Lane, 2015. "Discrimination in the laboratory: a meta-analysis," Discussion Papers 2015-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    16. Daniela Grieco, 2022. "What Economists Can Learn from “The Power of Us: Harnessing Our Shared Identities for Personal and Collective Success” by Jay J. Van Bavel and Dominick J. Packer," Games, MDPI, vol. 13(2), pages 1-3, March.
    17. Lian Xue & Stefania Sitzia & Theodore L. Turocy, 2017. "What’s ours is ours: An experiment on the efficiency of bargaining over the fruits of joint activity," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 17-12, School of Economics, University of East Anglia, Norwich, UK..
    18. Chang, Daphne & Chen, Roy & Krupka, Erin, 2019. "Rhetoric matters: A social norms explanation for the anomaly of framing," Games and Economic Behavior, Elsevier, vol. 116(C), pages 158-178.
    19. Aksoy, Billur & Chadd, Ian & Koh, Boon Han, 2023. "Sexual identity, gender, and anticipated discrimination in prosocial behavior," European Economic Review, Elsevier, vol. 154(C).
    20. Dickinson, David L. & Masclet, David & Peterle, Emmanuel, 2018. "Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market," European Economic Review, Elsevier, vol. 104(C), pages 220-236.

    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:gam:jgames:v:10:y:2019:i:2:p:16-:d:218388. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.