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Constrained Interactions and Social Coordination

  • Mathias Staudigl
  • Simon Weidenholzer


We consider a co-evolutionary model of social coordination and network formation where agents may decide on an action in a 2x2 - coordination game and on whom to establish costly links to. We find that a payoff domination convention is selected for a wider parameter range when agents may only support a limited number of links as compared to a scenario where agents are not constrained in their linking choice. The main reason behind this result is that whenever there is a small cluster of agents playing the efficient strategy other players want to link up to those layers and choose the efficient action.

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Paper provided by University of Essex, Department of Economics in its series Economics Discussion Papers with number 747.

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Date of creation: 01 Feb 2014
Date of revision:
Handle: RePEc:esx:essedp:747
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Order Information: Postal: Discussion Papers Administrator, Department of Economics, University of Essex, Wivenhoe Park, Colchester CO4 3SQ, U.K.

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