How Do Conventions Evolve?
The paper argues that, even in the absence of bureaucratic inertia, the transition from one convention to a superior one can be blocked. Because of the self-reinforcing mechanism generated by coordination effects, the economy can be locked-in to a Pareto-inferior convention. In the framework of evolutionary game theory, convention appears to be an evolutionary stable strategy. We show that the endogenous diffusion of a superior convention is possible but requires the presence of some social or cultural differentiation in order that coordination effects can be localized. The social or cultural links provide no information about the structure of the game, but help people to coordinate themselves by providing external points of reference. We construct a model where matching between agents respects a certain localization of interactions related to social or cultural similarity. These results are used to enlighten the surprising success of Japanese labor management in U.S. and U.K. transplants.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 2 (1992)
Issue (Month): 3 (October)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/journal/191/PS2|
When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:2:y:1992:i:3:p:165-77. 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: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.