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Altruism, Egoism And Group Cohesion In A Local Interaction Model

  • José A. García Martínez

    (Universidad de Alicante)

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    In this paper we have introduced and parameterized the concept of ?group cohesion? in a model of local interaction with a population divided into groups. This allows us to control the level of ?isolation? of these groups: We thus analyze if the degree of group cohesion is relevant to achieve an efficient behaviour and which level would be the best one for this purpose. We are interested in situations where there is a trade off between efficiency and individual incentives. This trade off is stronger when the efficient strategy or norm is strictly dominated, as in the Prisoner?s Dilemma or in some cases of Altruism. In our model we have considered that agents could choose to be Altruist of Egoist, in fact, they behave as in Eshel, Samuelson and Shaked (1998) model.

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    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2004-44.

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    Length: 38 pages
    Date of creation: Nov 2004
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasad:2004-44
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    1. Bergstrom, T.C. & Stark, O., 1993. "How Altruism Can Prevail in an Evolutionary Environment," Papers 93-01, Michigan - Center for Research on Economic & Social Theory.
    2. Sjostrom, Tomas & Weitzman, Martin L., 1996. "Competition and the evolution of efficiency," Journal of Economic Behavior & Organization, Elsevier, vol. 30(1), pages 25-43, July.
    3. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September.
    4. Vega-Redondo Fernando, 1993. "Competition and Culture in an Evolutionary Process of Equilibrium Selection: A Simple Example," Games and Economic Behavior, Elsevier, vol. 5(4), pages 618-631, October.
    5. Theodore C. Bergstrom, 2002. "Evolution of Social Behavior: Individual and Group Selection," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 67-88, Spring.
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