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Cooperation and Cognition in Social Networks

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Listed:
  • Edoardo Gallo
  • Joseph Lee
  • Yohanes Eko Riyanto
  • Erwin Wong

Abstract

Social networks can sustain cooperation by amplifying the consequences of a single defection through a cascade of relationship losses. Building on Jackson et al. (2012), we introduce a novel robustness notion to characterize low cognitive complexity (LCC) networks - a subset of equilibrium networks that imposes a minimal cognitive burden to calculate and comprehend the consequences of defection. We test our theory in a laboratory experiment and find that cooperation is higher in equilibrium than in non-equilibrium networks. Within equilibrium networks, LCC networks exhibit higher levels of cooperation than non-LCC networks. Learning is essential for the emergence of equilibrium play.

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  • Edoardo Gallo & Joseph Lee & Yohanes Eko Riyanto & Erwin Wong, 2023. "Cooperation and Cognition in Social Networks," Papers 2305.01209, arXiv.org.
    • Handle: RePEc:arx:papers:2305.01209
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