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Endogenous Neighborhood Selection and the Attainment of Cooperation in a Spatial Prisoner’s Dilemma Game

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  • Jason Barr

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  • Troy Tassier

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Abstract

There is a large literature in economics and elsewhere on the emergence and evolution of cooperation in the repeated Prisoner's Dilemma. Recently this literature has expanded to include cooperation in spatial prisoner dilemma games where agents play only with local neighbors in a specified geography. In this paper we explore how the ability of agents to move and choose new locations and new neighbors influences the emergence of cooperation. First, we explore the dynamics of cooperation by investigating agent strategies that yield Markov transition probabilities. We show how different agent strategies yield different Markov chains which generate different asymptotic behaviors in regard to the attainment of cooperation. Second, we investigate how agent movement affects the attainment of cooperation in various spatial networks using agent based simulations.
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Suggested Citation

  • Jason Barr & Troy Tassier, 2010. "Endogenous Neighborhood Selection and the Attainment of Cooperation in a Spatial Prisoner’s Dilemma Game," Computational Economics, Springer;Society for Computational Economics, vol. 35(3), pages 211-234, March.
  • Handle: RePEc:kap:compec:v:35:y:2010:i:3:p:211-234
    DOI: 10.1007/s10614-009-9184-4
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    File URL: http://hdl.handle.net/10.1007/s10614-009-9184-4
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    References listed on IDEAS

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    1. Jason M Barr & Troy Tassier, 2008. "Segregation and Strategic Neighborhood Interaction," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(4), pages 480-503.
    2. Theodore C. Bergstrom, 2002. "Evolution of Social Behavior: Individual and Group Selection," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 67-88, Spring.
    3. Nobuyuki Hanaki & Alexander Peterhansl & Peter S. Dodds & Duncan J. Watts, 2007. "Cooperation in Evolving Social Networks," Management Science, INFORMS, vol. 53(7), pages 1036-1050, July.
    4. repec:wsi:acsxxx:v:05:y:2002:i:02n03:n:s0219525902000584 is not listed on IDEAS
    5. Fudenberg, Drew & Maskin, Eric, 1990. "Evolution and Cooperation in Noisy Repeated Games," American Economic Review, American Economic Association, vol. 80(2), pages 274-279, May.
    6. Janssen, Marco A., 2008. "Evolution of cooperation in a one-shot Prisoner's Dilemma based on recognition of trustworthy and untrustworthy agents," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 458-471, March.
    7. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
    8. M.A. Nowak & K. Sigmund, 1998. "Evolution of Indirect Reciprocity by Image Scoring/ The Dynamics of Indirect Reciprocity," Working Papers ir98040, International Institute for Applied Systems Analysis.
    9. Wilhite, Allen, 2006. "Economic Activity on Fixed Networks," Handbook of Computational Economics,in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 20, pages 1013-1045 Elsevier.
    10. Ahn, T.K. & Isaac, R. Mark & Salmon, Timothy C., 2009. "Coming and going: Experiments on endogenous group sizes for excludable public goods," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 336-351, February.
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    Citations

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    Cited by:

    1. David Hagmann & Troy Tassier, 2014. "Endogenous Movement and Equilibrium Selection in Spatial Coordination Games," Computational Economics, Springer;Society for Computational Economics, vol. 44(3), pages 379-395, October.
    2. repec:eee:apmaco:v:320:y:2018:i:c:p:621-632 is not listed on IDEAS
    3. 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.

    More about this item

    Keywords

    Repeated Prisoner’s Dilemma; Cooperation; Agent-based economics; Endogenous networks; Markov chains; C63; C72; C73; D85;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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