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Dynamics of social tolerance in the economic interaction model with three groups

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  • Yingying Shi
  • Daiyan Peng

Abstract

The dynamics of social tolerance among three groups of economic agents have been discussed. We show that dynamics of social tolerance between two groups can be greatly influenced by the third group, and a society with three groups exhibits rich behaviours which are very different from the two-group case. In the three-group case, a fully intolerant society may also get total welfare maximization, while a society with higher social costs gets lower total welfare. Cultural integration is vitally important in achieving full tolerance and total welfare maximization. In particular, suitably increase the number of groups, which can reduce the necessary condition of achieving full tolerance, is an effective method if cultural integration is invalid.

Suggested Citation

  • Yingying Shi & Daiyan Peng, 2014. "Dynamics of social tolerance in the economic interaction model with three groups," Applied Economics Letters, Taylor & Francis Journals, vol. 21(10), pages 665-670, July.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:10:p:665-670
    DOI: 10.1080/13504851.2014.881964
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    Cited by:

    1. Yingying SHI & Min PAN, 2018. "Dynamics of Social Tolerance on Corruption: An Economic Interaction Perspective," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 135-141, December.

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