IDEAS home Printed from https://ideas.repec.org/a/kap/jbioec/v6y2004i2p165-194.html
   My bibliography  Save this article

Coexistence of Strategies and Culturally-Specific Common Knowledge: An Evolutionary Analysis

Author

Listed:
  • Angelo Antoci
  • Pier Sacco
  • Luca Zarri

Abstract

We analyze social dynamics in a continuous population where randomly matched individuals have to choose between two pure strategies only ('cooperate' (C) and 'not cooperate' (NC)). Individual payoffs associated with the possible outcomes of each interaction may differ across groups, depending on the specific social and cultural context to which each agent belongs. In particular, it is assumed that three sub-populations are initially present, 'framing' the game according to the prisoner's dilemma (PD), assurance game (AG) and other regarding (OR) payoff configurations, respectively. In other words, we assume that common knowledge about the payoffs of the game is 'culturally-specific'. In this context, we examine both the adoption process of strategies C and NC within each sub-population and the diffusion process of 'types' (PD, AG and OR) within the overall community. On the basis of an evolutionary game-theoretic approach, the paper focuses on the problem of coexistence of PD, AG and OR groups as well as of 'nice' (C) and 'mean' (NC) strategies. We show that coexistence between C and NC is possible in the heterogeneous community under examination, even if it is ruled out in homogeneous communities where only one of the three types is present. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Angelo Antoci & Pier Sacco & Luca Zarri, 2004. "Coexistence of Strategies and Culturally-Specific Common Knowledge: An Evolutionary Analysis," Journal of Bioeconomics, Springer, vol. 6(2), pages 165-194, May.
    • Handle: RePEc:kap:jbioec:v:6:y:2004:i:2:p:165-194
    DOI: 10.1023/B:JBIO.0000040371.20538.3f
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/B:JBIO.0000040371.20538.3f
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/B:JBIO.0000040371.20538.3f?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rabin, Matthew, 2002. "A perspective on psychology and economics," European Economic Review, Elsevier, vol. 46(4-5), pages 657-685, May.
    2. Glenn Ellison, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 567-588.
    3. Karandikar, Rajeeva & Mookherjee, Dilip & Ray, Debraj & Vega-Redondo, Fernando, 1998. "Evolving Aspirations and Cooperation," Journal of Economic Theory, Elsevier, vol. 80(2), pages 292-331, June.
    4. Boyd, Robert & Richerson, Peter J., 1980. "Sociobiology, culture and economic theory," Journal of Economic Behavior & Organization, Elsevier, vol. 1(2), pages 97-121, June.
    5. Ernst Fehr & Georg Kirchsteiger & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 437-459.
    6. Cooper, Russell & DeJong, Douglas V. & Forsythe, Robert & Ross, Thomas W., 1996. "Cooperation without Reputation: Experimental Evidence from Prisoner's Dilemma Games," Games and Economic Behavior, Elsevier, vol. 12(2), pages 187-218, February.
    7. Bjornerstedt, J. & Weibull, J.W., 1993. "Nash Equilibrium and Evolution by Imitation," DELTA Working Papers 93-23, DELTA (Ecole normale supérieure).
    8. Fernando Vega-Redondo & Frédéric Palomino, 1999. "Convergence of aspirations and (partial) cooperation in the prisoner's dilemma," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(4), pages 465-488.
    9. Aaron Wildavsky, 1992. "Indispensable Framework or Just another Ideology?," Rationality and Society, , vol. 4(1), pages 8-23, January.
    10. Weimann, Joachim, 1994. "Individual behaviour in a free riding experiment," Journal of Public Economics, Elsevier, vol. 54(2), pages 185-200, June.
    11. Dennis Mueller, 1986. "Rational egoism versus adaptive egoism as fundamental postulate for a descriptive theory of human behavior," Public Choice, Springer, vol. 51(1), pages 3-23, January.
    12. Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-321, June.
    13. Andreoni, James A & Miller, John H, 1993. "Rational Cooperation in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 103(418), pages 570-585, May.
    14. Angelo Antoci & Pier Luigi Sacco & Stefano Zamagni, 2000. "The Ecology of Altruistic Motivations in Triadic Social Environments," International Economic Association Series, in: L.-A. Gérard-Varet & S.-C. Kolm & J. Mercier Ythier (ed.), The Economics of Reciprocity, Giving and Altruism, chapter 19, pages 335-351, Palgrave Macmillan.
    15. Rapaport, Carol, 1995. "Apparent Wage Discrimination When Wages Are Determined by Nondiscriminatory Contracts," American Economic Review, American Economic Association, vol. 85(5), pages 1263-1277, December.
    16. Binmore, K. & Samuelson, L., 1990. "Evolutionary Stability In Repeated Games Played By Finite Automata," Working papers 90-29, Wisconsin Madison - Social Systems.
    17. Kalai, Ehud & Lehrer, Ehud, 1995. "Subjective games and equilibria," Games and Economic Behavior, Elsevier, vol. 8(1), pages 123-163.
    18. Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
    19. Sugden, Robert, 1991. "Rational Choice: A Survey of Contributions from Economics and Philosophy," Economic Journal, Royal Economic Society, vol. 101(407), pages 751-785, July.
    20. Angelo Antoci & Pier Sacco, 1995. "A public contracting evolutionary game with corruption," Journal of Economics, Springer, vol. 61(2), pages 89-122, June.
    21. Ernst Fehr & Urs Fischbacher, "undated". "Why Social Preferences Matter - The Impact of Non-Selfish Motives on Competition," IEW - Working Papers 084, Institute for Empirical Research in Economics - University of Zurich.
    22. Binmore, Kenneth G. & Samuelson, Larry, 1992. "Evolutionary stability in repeated games played by finite automata," Journal of Economic Theory, Elsevier, vol. 57(2), pages 278-305, August.
    23. Ockenfels, Axel & Weimann, Joachim, 1999. "Types and patterns: an experimental East-West-German comparison of cooperation and solidarity," Journal of Public Economics, Elsevier, vol. 71(2), pages 275-287, February.
    24. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    25. Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
    26. Ernst Fehr & Urs Fischbacher, 2002. "Why Social Preferences Matter -- The Impact of Non-Selfish Motives on Competition, Cooperation and Incentives," Economic Journal, Royal Economic Society, vol. 112(478), pages 1-33, March.
    27. Avner Shaked & Ilan Eshel & Emilia Sansone, 1999. "The emergence of kinship behavior in structured populations of unrelated individuals," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(4), pages 447-463.
    28. Michihiro Kandori, 1992. "Social Norms and Community Enforcement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(1), pages 63-80.
    29. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    30. Ken Binmore, 1994. "Game Theory and the Social Contract, Volume 1: Playing Fair," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262023636, April.
    31. Amartya K. Sen, 1967. "Isolation, Assurance and the Social Rate of Discount," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 81(1), pages 112-124.
    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. Antoci, Angelo & Galeotti, Marcello & Russu, Paolo & Zarri, Luca, 2006. "Generalized trust and sustainable coexistence between socially responsible firms and nonprofit organizations," Chaos, Solitons & Fractals, Elsevier, vol. 29(3), pages 783-802.
    2. Luca Zarri, 2007. "Happiness, Morality and Game Theory," Chapters, in: Luigino Bruni & Pier Luigi Porta (ed.), Handbook on the Economics of Happiness, chapter 16, Edward Elgar Publishing.
    3. P. L. Sacco & M. Viviani, 2006. "La responsabilita' sociale d'Impresa - prospettive teoriche nel dibattito italiano," Working Papers 578, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Antoci, Angelo & Fiori Maccioni, Alessandro & Russu, Paolo & Sacco, Pier Luigi, 2022. "Curing is caring? Liability reforms, defensive medicine and malpractice litigation in a post-pandemic world," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    5. Angelo Antoci & Alessandro Fiori Maccioni & Paolo Russu, 2016. "The Ecology of Defensive Medicine and Malpractice Litigation," PLOS ONE, Public Library of Science, vol. 11(3), pages 1-15, March.
    6. Bruni, Luigino & Smerilli, Alessandra, 2010. "Cooperation and diversity. An evolutionary approach," MPRA Paper 20564, University Library of Munich, Germany.
    7. Sacco, Pier Luigi & Viviani, Michele, 2005. "Corporate Social Responsibility: theoretical perspectives in the Italian Debate," AICCON Working Papers 11-2005, Associazione Italiana per la Cultura della Cooperazione e del Non Profit, revised 03 Feb 2007.

    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. Gary E Bolton & Axel Ockenfels, 1997. "A Theory of Equity, Reciprocity, and Competition," Levine's Working Paper Archive 1889, David K. Levine.
    2. Chun-Lei Yang & Ching-Syang Jack Yue & I-Tang Yu, 2007. "The rise of cooperation in correlated matching prisoners dilemma: An experiment," Experimental Economics, Springer;Economic Science Association, vol. 10(1), pages 3-20, March.
    3. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    4. Greiner, Ben & Vittoria Levati, M., 2005. "Indirect reciprocity in cyclical networks: An experimental study," Journal of Economic Psychology, Elsevier, vol. 26(5), pages 711-731, October.
    5. Luca Zarri, 2007. "Happiness, Morality and Game Theory," Chapters, in: Luigino Bruni & Pier Luigi Porta (ed.), Handbook on the Economics of Happiness, chapter 16, Edward Elgar Publishing.
    6. Chun Lei Yang & Ching Syang Jack Yue, 2004. "The Rise of Cooperation in Correlated Matching Prisoners Dilemma: An Experiment," Levine's Bibliography 122247000000000097, UCLA Department of Economics.
    7. Alexander Tieman & Harold Houba & Gerard Laan, 2000. "On the level of cooperative behavior in a local-interaction model," Journal of Economics, Springer, vol. 71(1), pages 1-30, February.
    8. Claudia Keser & Frans Van Winden, 2000. "Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
    9. Kurt A. Ackermann & Ryan O. Murphy, 2019. "Explaining Cooperative Behavior in Public Goods Games: How Preferences and Beliefs Affect Contribution Levels," Games, MDPI, vol. 10(1), pages 1-34, March.
    10. Pedro Dal Bo & Guillaume R. Frochette, 2011. "The Evolution of Cooperation in Infinitely Repeated Games: Experimental Evidence," American Economic Review, American Economic Association, vol. 101(1), pages 411-429, February.
    11. Hahn, Volker & Mühe, Felix, 2009. "Committees and reciprocity," Mathematical Social Sciences, Elsevier, vol. 57(1), pages 26-47, January.
    12. Livio, Luca & De Chiara, Alessandro, 2019. "Friends or foes? Optimal incentives for reciprocal agents," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 245-278.
    13. Wu, Steven Y. & Roe, Brian E., 2005. "Social Preferences and Relational Contracting: An Experimental Investigation," 2005 Annual meeting, July 24-27, Providence, RI 19215, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Sethi, Rajiv & Somanathan, E., 2003. "Understanding reciprocity," Journal of Economic Behavior & Organization, Elsevier, vol. 50(1), pages 1-27, January.
    15. Redzo Mujcic & Andreas Leibbrandt, 2018. "Indirect Reciprocity and Prosocial Behaviour: Evidence from a Natural Field Experiment," Economic Journal, Royal Economic Society, vol. 128(611), pages 1683-1699, June.
    16. Murnighan, J. Keith & Wang, Long, 2016. "The social world as an experimental game," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 80-94.
    17. Paul J. Healy, 2007. "Group Reputations, Stereotypes, and Cooperation in a Repeated Labor Market," American Economic Review, American Economic Association, vol. 97(5), pages 1751-1773, December.
    18. Bruno S. Frey & Stephan Meier, "undated". "Pro-Social Behavior, Reciprocity or Both?," IEW - Working Papers 107, Institute for Empirical Research in Economics - University of Zurich.
    19. Urs Fischbacher & Simon Gaechter, 2008. "Heterogeneous Social Preferences And The Dynamics Of Free Riding In Public Good Experiments," Discussion Papers 2008-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    20. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.

    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:kap:jbioec:v:6:y:2004:i:2:p:165-194. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.