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Custom Versus Fashion: Path-Dependence and Limit Cycles in a Random Matching Game

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  • Kiminori Matsuyama

Abstract

A pairwise random matching game is considered to identify the social environments that give rise to the social custom and fashion cycles. The game, played by Conformists and Nonconformists, can generate a variety of socially stable behavior patterns. In the path-dependence case, Conformists set the social custom and Nonconformists revolt against it; what actin becomes the custom is determined by "history." In the limit cycle case, Nonconformists become fashion leaders and switch their actions periodically, while Conformists follow with delay. The outcome depends on the relative share of Conformists to Nonconformists as well as their matching patterns.

Suggested Citation

  • Kiminori Matsuyama, 1991. "Custom Versus Fashion: Path-Dependence and Limit Cycles in a Random Matching Game," Discussion Papers 1030, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    • Handle: RePEc:nwu:cmsems:1030
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    References listed on IDEAS

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    Cited by:

    1. Ahmad Naimzada & Marina Pireddu, 2019. "A general equilibrium evolutionary model with generic utility functions and generic bell-shaped attractiveness maps, generating fashion cycle dynamics," Working Papers 401, University of Milano-Bicocca, Department of Economics, revised Mar 2019.
    2. Matsui Akihiko & Matsuyama Kiminori, 1995. "An Approach to Equilibrium Selection," Journal of Economic Theory, Elsevier, vol. 65(2), pages 415-434, April.
    3. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    4. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    5. Ahmad Naimzada & Marina Pireddu, 2020. "A general equilibrium evolutionary model with two groups of agents, generating fashion cycle dynamics," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 43(1), pages 155-185, June.
    6. Leonardo Bargigli & Filippo Pietrini, 2024. "Conformism, distinction and heterogeneity in an agent-based model of fads," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 19(4), pages 807-829, October.
    7. Cabo, Francisco & García-González, Ana, 2020. "Interaction and imitation with heterogeneous agents: A misleading evolutionary equilibrium," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 152-174.
    8. Baumann, Leonie & Olszewski, Wojciech, 2021. "Demand cycles and heterogeneous conformity preferences," Journal of Economic Theory, Elsevier, vol. 194(C).
    9. Agnès Festré, 2010. "Incentives And Social Norms: A Motivation‐Based Economic Analysis Of Social Norms," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 511-538, July.
    10. Leonardo Bargigli & Filippo Pietrini, 2023. "An agent based model of fads," Working Papers - Economics wp2023_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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