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Conformism and Cooperation in a Local Interaction Model

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  • Mengel, Friederike

Abstract

We present and analyze a local interaction model where agents play a bilateral prisoner's dilemma game with their neighbors. Agents learn about behavior through payoff-biased imitation of their interaction neighbors (and possibly some agents beyond this set). We find that the [Eshel, I., L. Samuelson and A. Shaked, 1998, Altruists, Egoists and Hooligans in a Local Interaction Model, Am. Econ. Rev 88] result that polymorphic states are stochastically stable in such a setting is not robust. In particular whenever agents use information also of some agents beyond their interaction neighbors the unique stable outcome is one where everyone chooses defection. Introducing a sufficiently strong conformist bias into the imitation process we find that full cooperation always emerges. Conformism is thus identified as a new mechanism that can stabilize cooperation.

Suggested Citation

  • Mengel, Friederike, 2007. "Conformism and Cooperation in a Local Interaction Model," MPRA Paper 4051, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:4051
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    References listed on IDEAS

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    1. repec:spr:joecth:v:64:y:2017:i:3:d:10.1007_s00199-016-1002-3 is not listed on IDEAS
    2. Elsner, Wolfram & Schwardt, Henning, 2012. "Trust and Arena Size. Expectations, Trust, and Institutions Co-Evolving, and Their Critical Population and Group Sizes," MPRA Paper 40393, University Library of Munich, Germany.
    3. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2014. "Imitation and the role of information in overcoming coordination failures," Games and Economic Behavior, Elsevier, vol. 87(C), pages 397-411.
    4. V. Masson, 2015. "Information, interaction and memory," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 1015-1032, November.
    5. Abhimanyu Khan, 2014. "Coordination under global random interaction and local imitation," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(4), pages 721-745, November.
    6. Oded Stark & Doris Behrens, 2011. "In search of an evolutionary edge: trading with a few, more, or many," Journal of Evolutionary Economics, Springer, vol. 21(5), pages 721-736, December.
    7. Fosco, Constanza & Mengel, Friederike, 2011. "Cooperation through imitation and exclusion in networks," Journal of Economic Dynamics and Control, Elsevier, vol. 35(5), pages 641-658, May.
    8. Boyer, Tristan & Jonard, Nicolas, 2014. "Imitation and efficient contagion," Journal of Economic Behavior & Organization, Elsevier, vol. 100(C), pages 20-32.
    9. Grajzl, Peter & Baniak, Andrzej, 2012. "Mandating behavioral conformity in social groups with conformist members," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 479-493.
    10. repec:ipg:wpaper:2014-052 is not listed on IDEAS
    11. Ludo Waltman & Nees Eck & Rommert Dekker & Uzay Kaymak, 2013. "An Evolutionary Model of Price Competition Among Spatially Distributed Firms," Computational Economics, Springer;Society for Computational Economics, vol. 42(4), pages 373-391, December.
    12. Tristan Boyer & Nicolas Jonard, 2014. "Imitation and Efficient Contagion," Working Papers 2014-52, Department of Research, Ipag Business School.
    13. Amparo Urbano, 2011. "SEA Presidential address: Group connectivity and cooperation," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 2(2), pages 139-158, June.
    14. Hedlund Jonas, 2012. "Altruism and Local Interaction," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-27, June.
    15. Jonas Hedlund, 2015. "Imitation in Cournot oligopolies with multiple markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 567-587, November.

    More about this item

    Keywords

    Cooperation; Imitation; Local Interaction; Conformism;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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