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Conventions, local interaction, and automata networks

Author

Listed:
  • Ulrich Schwalbe

    (Department of Economics, University of Mannheim)

  • Siegfried K. Berninghaus

    (Department of Economics, University of Karlsruhe)

Abstract

This paper deals with the evolution of conventions in a finite population of boundedly rational players. We apply methods from the theory of automata networks to analyze the effects of different interaction structures. It is shown that the size of the reference group for each player has an important impact on the evolutionary stability of a particular convention, and that the interaction structure crucially determines the distribution of conventions in the population.

Suggested Citation

  • Ulrich Schwalbe & Siegfried K. Berninghaus, 1996. "Conventions, local interaction, and automata networks," Journal of Evolutionary Economics, Springer, vol. 6(3), pages 297-312.
  • Handle: RePEc:spr:joevec:v:6:y:1996:i:3:p:297-312
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    Citations

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    Cited by:

    1. Outkin, Alexander V., 2003. "Cooperation and local interactions in the Prisoners' Dilemma Game," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 481-503, December.
    2. Banerjee, Simanti & Kwasnica, Anthony M & Shortle, James S, 2011. "Agglomeration Bonus in Local Networks: A laboratory examination of spatial coordination failure," Stirling Economics Discussion Papers 2011-18, University of Stirling, Division of Economics.
    3. Vincent Buskens & Chris Snijders, 2016. "Effects of Network Characteristics on Reaching the Payoff-Dominant Equilibrium in Coordination Games: A Simulation study," Dynamic Games and Applications, Springer, vol. 6(4), pages 477-494, December.
    4. Banerjee, Simanti & Kwasnica, Anthony M. & Shortle, James S., 2012. "Agglomeration bonus in small and large local networks: A laboratory examination of spatial coordination," Ecological Economics, Elsevier, vol. 84(C), pages 142-152.
    5. Siegfried Berninghaus & Hans Haller & Alexander Outkin, 2006. "Neural networks and contagion," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 11-11.
    6. Jacques Durieu & Philippe Solal, 2012. "Models of Adaptive Learning in Game Theory," Chapters,in: Handbook of Knowledge and Economics, chapter 11 Edward Elgar Publishing.
    7. Tone Dieckmann & Ulrich Schwalbe, 2000. "Dynamic Coalition Formation and the Core," Econometric Society World Congress 2000 Contributed Papers 1878, Econometric Society.
    8. Keser, Claudia & Ehrhart, Karl-Martin & Berninghaus, Siegfried K., 1998. "Coordination and local interaction: experimental evidence," Economics Letters, Elsevier, vol. 58(3), pages 269-275, March.
    9. Napel, Stefan, 2003. "Aspiration adaptation in the ultimatum minigame," Games and Economic Behavior, Elsevier, vol. 43(1), pages 86-106, April.
    10. Cassar, Alessandra, 2007. "Coordination and cooperation in local, random and small world networks: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 58(2), pages 209-230, February.
    11. Susan Lee, 1999. "Assortative Interactions and Endogenous Stratification," Working Papers 99-08-056, Santa Fe Institute.
    12. Berninghaus, Siegfried & Haller, Hans, 2007. "Pairwise interaction on random graphs," Papers 06-16, Sonderforschungsbreich 504.
    13. Jacques Durieu & Hans Haller & Philippe Solal, 2011. "Nonspecific Networking," Games, MDPI, Open Access Journal, vol. 2(1), pages 1-27, February.
    14. Berninghaus, Siegfried K. & Ehrhart, Karl-Martin & Keser, Claudia, 2002. "Conventions and Local Interaction Structures: Experimental Evidence," Games and Economic Behavior, Elsevier, vol. 39(2), pages 177-205, May.
    15. Tone Dieckmann; & Ulrich Schwalbe, 1998. "Dynamic Coalition Formation and the Core," Economics, Finance and Accounting Department Working Paper Series n810798, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    16. Arnold, Tone & Schwalbe, Ulrich, 2002. "Dynamic coalition formation and the core," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 363-380, November.

    More about this item

    Keywords

    Conventions;

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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