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Social networks, norm-enforcing ties and cooperation

Author

Listed:
  • Renan Goetz

    (University of Girona)

  • Jorge Marco

    (University of Girona)

Abstract

We study cooperation and group pressure on social networks by introducing a new concept termed norm-enforcing ties. By combining network characteristics and agents’ actions, direct and indirect norm-enforcing ties extend and refine the concept of social ties as well as the role of the tightness of a group as drivers of group pressure and cooperation. The results show that a strong commitment by agents with collective interests, or a high degree of confrontation between agents minimizes the effect of indirect norm-enforcing ties on cooperation. The analysis in terms of the agent’s utility reveals that an increase in indirect norm-enforcing ties does not necessarily lead to a decrease in the critical mass of compliers supporting cooperation. We demonstrate that network-oriented policies are more efficient in promoting cooperation than are standard economic policy instruments when the expected value of direct norm-enforcing ties is sufficiently large compared to the tightness of the group. Otherwise, standard economic policy instruments are more efficient.

Suggested Citation

  • Renan Goetz & Jorge Marco, 2025. "Social networks, norm-enforcing ties and cooperation," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 20(2), pages 371-412, April.
    • Handle: RePEc:spr:jeicoo:v:20:y:2025:i:2:d:10.1007_s11403-024-00435-x
    DOI: 10.1007/s11403-024-00435-x
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    More about this item

    Keywords

    Social norms; Social network; Cooperation; Social dilemma; Network-oriented policies;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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