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Assortativity evolving from social dilemmas

Listed author(s):
  • Alexandros Rigos

    ()

  • Heinrich H. Nax

    ()

Assortative mechanisms can overcome tragedies of the commons that otherwise result in dilemma situations. Assortativity criteria include genetics (e.g. kin selection), preferences (e.g. homophily), locations (e.g. spatial interaction) and actions (e.g. meritocracy), usually presuming an exogenously fixed matching mechanism. Here, we endogenize the matching process with the aim of investigating how assortativity itself, jointly with cooperation, is driven by evolution. Our main finding is that only full-or-null assortativities turn out to be long-run stable, their relative stabilities depending on the exact incentive structure of the underlying social dilemma. The resulting social loss is evaluated for general classes of dilemma games, thus quantifying to what extent tragedy of the commons may be endogenously overcome.

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File URL: http://www.le.ac.uk/economics/research/repec/lec/leecon/dp15-19.pdf
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 15/19.

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Date of creation: Aug 2015
Handle: RePEc:lec:leecon:15/19
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  1. Myatt, David P. & Wallace, Chris, 2008. "An evolutionary analysis of the volunteer's dilemma," Games and Economic Behavior, Elsevier, vol. 62(1), pages 67-76, January.
  2. 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.
  3. Alger, Ingela & Weibull, Jörgen W., 2014. "Evolution leads to Kantian morality," TSE Working Papers 14-504, Toulouse School of Economics (TSE), revised Jun 2015.
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  7. Martin Kaae Jensen & Alexandros Rigos, 2012. "Evolutionary Games with Group Selection," Discussion Papers 13-05, Department of Economics, University of Birmingham.
  8. Gunnthorsdottir, Anna & Vragov, Roumen & Seifert, Stefan & McCabe, Kevin, 2010. "Near-efficient equilibria in contribution-based competitive grouping," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 987-994, December.
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  13. Young, H. Peyton, 2011. "Commentary: John Nash and evolutionary game theory," Games and Economic Behavior, Elsevier, vol. 71(1), pages 12-13, January.
  14. Nax, Heinrich H. & Balietti, Stefano & Murphy, Ryan O. & Helbing, Dirk, 2015. "Meritocratic matching can dissolve the efficiency-equality tradeoff: the case of voluntary contributions," LSE Research Online Documents on Economics 65443, London School of Economics and Political Science, LSE Library.
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