How Groups Can Foster Consensus: The Case of Local Cultures
A local culture denotes a set of rules on business behaviour among firms in a cluster. Similar to social norms or conventions, it is an emergent feature of interaction in an economic network. To model its emergence, we consider a distributed agent population, representing cluster firms. Further, we build on a continuous opinion dynamics model with bounded confidence (ε), which assumes that two agents only interact if differences in their behaviour are less than ε. Interaction results in more similarity of behaviour, i.e. convergence towards a common mean. Two aspects extend this framework: (i) The agent's in-group consisting of acquainted interaction partners is explicitly taken into account, leading to an effective agent behaviour as agents try to continue to interact with past partners and thus seek to stay sufficiently close to them. (ii) The in-group network structure changes over time, as agents form new links to other agents with sufficiently close effective behaviour or delete links to agents no longer close in behaviour. Thus, the model introduces a feedback mechanism of agent behaviour and in-group structure. Studying its consequences by means of agent-based computer simulations, we find that for narrow-minded agents (low ε) the feedback mechanism helps find consensus more often, whereas for open-minded agents (high ε) this does not necessarily hold. Overall, the dynamics of agent interaction in clusters as modelled here, are conducive to consensus among all or a majority of agents.
Volume (Year): 12 (2009)
Issue (Month): 2 ()
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ernst Fehr & Urs Fischbacher, "undated".
"Third Party Punishment and Social Norms,"
IEW - Working Papers
106, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Urs Fischbacher, 2004. "Third-party punishment and social norms," Experimental 0409002, EconWPA.
- Thomas Fent & Patrick Groeber & Frank Schweitzer, 2007. "Coexistence Of Social Norms Based On In- And Out-Group Interactions," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 271-286.
- Rainer Hegselmann & Ulrich Krause, 2002. "Opinion Dynamics and Bounded Confidence Models, Analysis and Simulation," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 5(3), pages 1-2.
- Jan Lorenz, 2007. "Continuous Opinion Dynamics Under Bounded Confidence: A Survey," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 18(12), pages 1819-1838.
- Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-817, August.
- Kandel, E. & Lazear, E.P., 1990. "Peer Pressure and Partnerships," Papers 90-07, Rochester, Business - Managerial Economics Research Center.
- Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
- Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
- Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
- Allen, Robert C., 1983. "Collective invention," Journal of Economic Behavior & Organization, Elsevier, vol. 4(1), pages 1-24, March.
- Sugden, Robert, 1989. "Spontaneous Order," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 85-97, Fall.
- Markus M. Geipel, 2007. "Self-Organization Applied To Dynamic Network Layout," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 18(10), pages 1537-1549.
- Jan Lorenz, 2006. "Consensus Strikes Back in the Hegselmann-Krause Model of Continuous Opinion Dynamics Under Bounded Confidence," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 9(1), pages 1-8.
- F. Schweitzer & L. Behera, 2009. "Nonlinear voter models: the transition from invasion to coexistence," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 67(3), pages 301-318, February.
- Peter V. Marsden & Noah E. Friedkin, 1993. "Network Studies of Social Influence," Sociological Methods & Research, , vol. 22(1), pages 127-151, August. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:jas:jasssj:2008-43-2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Flaminio Squazzoni)
If references are entirely missing, you can add them using this form.