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The Dynamics Of Norms And Conventions Under Local Interactions And Imitation

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  • SEBASTIAN ILLE

    (Laboratory of Economics and Management, Sant'Anna School of Advanced Studies, Piazza Martiri della Libertà 33, 56127 Pisa, Italy)

Abstract

Restricting the analysis to general 2×2 coordination games, this article shows how under certain conditions, it is highly likely that individuals coordinate on a (pay-off) efficient through risk inferior convention. This contrasts with other equilibrium refinement criteria, such as risk dominance or stochastic stability. Here it is assumed that players are situated on a toroidal regular lattice, interact only locally and, in each period, imitate the last period's most successful player in their neighborhood. If the set of observable players by an individual and the set that he interacts with are both identical and small, pay-off dominance plays the major role in defining the long-term convention. As the latter set of players increases, a risk dominant but pay-off inferior convention becomes more likely. The model also shows that the interaction of two player types in a nonsymmetric game potentially leads to nonegalitarian conventions.

Suggested Citation

  • Sebastian Ille, 2014. "The Dynamics Of Norms And Conventions Under Local Interactions And Imitation," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-23.
  • Handle: RePEc:wsi:igtrxx:v:16:y:2014:i:03:n:s0219198914500017
    DOI: 10.1142/S0219198914500017
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    References listed on IDEAS

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    1. Ingela Alger & Jörgen W. Weibull, 2013. "Homo Moralis—Preference Evolution Under Incomplete Information and Assortative Matching," Econometrica, Econometric Society, vol. 81(6), pages 2269-2302, November.
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    3. Jason Potts, 2000. "The New Evolutionary Microeconomics," Books, Edward Elgar Publishing, number 2258.
    4. Sebastian Ille, 2013. "A Simple Model of Conflict," LEM Papers Series 2013/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Geoffrey M. Hodgson (ed.), 2007. "The Evolution of Economic Institutions," Books, Edward Elgar Publishing, number 12603.
    6. Sebastian Ille, 2013. "Simulating Conventions and Norms under Local Interactions and Imitation," LEM Papers Series 2013/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Alberto Bisin & Giorgio Topa & Thierry Verdier, 2004. "Cooperation as a Transmitted Cultural Trait," Rationality and Society, , vol. 16(4), pages 477-507, November.
    8. Welzel, Christian & Inglehart, Ronald, 1999. "Analyzing democratic change and stability: A human development theory of democracy," Discussion Papers, Research Unit: Institutions and Social Change FS III 99-202, WZB Berlin Social Science Center.
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    Cited by:

    1. Charles H. Anderton, 2015. "The social evolution of genocide across time and geographic space: Perspectives from evolutionary game theory," Economics of Peace and Security Journal, EPS Publishing, vol. 10(2), pages 5-20, October.
    2. Edgar J. Sánchez Carrera & Elena Gubar & Andrey F. Oleynik, 2019. "Network Structures and Poverty Traps," Dynamic Games and Applications, Springer, vol. 9(1), pages 236-253, March.
    3. Sebastian Ille, 2013. "Simulating Conventions and Norms under Local Interactions and Imitation," LEM Papers Series 2013/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    Keywords

    Existence and stability of equilibria; evolutionary games; behavior; simulation modeling; C62; C63; D73; D03; D83;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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