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Cooperation through Imitation and Exclusion in Networks

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  • Mengel, Friederike
  • Fosco, Constanza

Abstract

We develop a simple model to study the coevolution of interaction structures and action choices in prisoners' dilemma games. Agents are boundedly rational and choose both actions and interaction partners via payoff-biased imitation. The dynamics of imitation and exclusion yields polymorphic outcomes under a wide range of parameters. Whenever agents hold some information beyond their interaction neighbors defectors and cooperators always coexist in disconnected components. Otherwise polymorphic networks can emerge with a center of cooperators and a periphery of defectors. Any stochastically stable state has at most two disconnected components. Simulations confirm our analytical results and show that the share of cooperators increases with the speed at which the network evolves, increases with the radius of interaction and decreases with the radius of information.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5258.

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Date of creation: 10 Oct 2007
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Handle: RePEc:pra:mprapa:5258
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Keywords: Game Theory; Cooperation; Imitation Learning; Network Formation;

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Find related papers by JEL classification:
  • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
  • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
  • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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Cited by:

  1. Kovarik, Jaromir & Jiménez, Natalia & Ponti, Giovanni & Espinosa Alejos, María Paz & Brañas Garza, Pablo & Cobo Reyes, Ramón, 2009. "Altruism and Social Integration," DFAEII Working Papers 2009-05, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Kovarik, Jaromir & Jiménez, Natalia & Ponti, Giovanni & Espinosa Alejos, María Paz & Brañas Garza, Pablo & Cobo Reyes, Ramón, 2009. "Altruism and Social Integration," IKERLANAK 2009-35, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  2. Friederike Mengel, 2009. "Conformism and cooperation in a local interaction model," Journal of Evolutionary Economics, Springer, vol. 19(3), pages 397-415, June.
  3. Brañas Garza, Pablo & Espinosa Alejos, María Paz & Cobo Reyes, Ramón & Jiménez, Natalia & Ponti, Giovanni, 2006. "Altruism in the (Social) Network," DFAEII Working Papers 2006-04, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Kovarik, Jaromir & Jiménez, Natalia & Ponti, Giovanni & Espinosa Alejos, María Paz & Brañas Garza, Pablo & Cobo Reyes, Ramón, 2009. "Altruism and Social Integration," IKERLANAK 2009-35, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  4. Nikolas Tsakas, 2013. "Diffusion by Imitation: The Importance of Targeting Agents," 2013 Papers pts99, Job Market Papers.
  5. Wilson, James & Hill, J. & Kersula, M. & Wilson, C.L. & Whitsel, L. & Yan, L. & Acheson, J. & Chen, Y. & Cleaver, C. & Congdon, C. & Hayden, A. & Hayes, P. & Johnson, T. & Morehead, G. & Steneck, R. &, 2013. "Costly information and the evolution of self-organization in a small, complex economy," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages S76-S93.
  6. Wilhite, Allen, 2014. "Network structure, games, and agent dynamics," Journal of Economic Dynamics and Control, Elsevier, vol. 47(C), pages 225-238.
  7. Romero, José Gabriel & Kovarik, Jaromir & Mengel, Friederike, 2012. "Learning in Network Games," IKERLANAK Ikerlanak;2012-66, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  8. Tsakas, Nikolas, 2012. "Naive learning in social networks: Imitating the most successful neighbor," MPRA Paper 37796, University Library of Munich, Germany.
  9. Ludo Waltman & Nees Eck & Rommert Dekker & Uzay Kaymak, 2013. "An Evolutionary Model of Price Competition Among Spatially Distributed Firms," Computational Economics, Society for Computational Economics, vol. 42(4), pages 373-391, December.
  10. Cui, Zhiwei, 2014. "More neighbors, more efficiency," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 103-115.
  11. Daniel Ladley & Ian Wilkinson & Louise Young, 2013. "The Evolution Of Cooperation In Business: Individual Vs. Group Incentives," Discussion Papers in Economics 13/14, Department of Economics, University of Leicester.

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