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Segregation and Strategic Neighborhood Interaction

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  • Jason Barr
  • Troy Tassier

Abstract

We introduce social interactions into the Schelling model of residential choice. These social interactions take the form of a Prisoner's Dilemma game played with neighbors. First, we study the Schelling model over a wide range of utility functions and then proceed to study a spatial Prisoner's Dilemma model. These models provide a benchmark for studying a combined model with preferences over like-typed neighbors and payoffs in the spatial Prisoner's Dilemma game. We study this combined model both analytically and using agent-based simulations. We find that the presence of these additional social interactions may increase or decrease segregation compared to the standard Schelling model. If the social interactions result in cooperation then segregation is reduced, otherwise it is increased.

Suggested Citation

  • Jason Barr & Troy Tassier, 2007. "Segregation and Strategic Neighborhood Interaction," Working Papers Rutgers University, Newark 2007-001, Department of Economics, Rutgers University, Newark.
    • Handle: RePEc:run:wpaper:2007-001
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    File URL: http://www.ncas.rutgers.edu/workingpaper20071
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    References listed on IDEAS

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    1. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 827-872.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Star Trek and the Economics of Hate
      by Jason Barr in Skynomics Blog on 2020-07-15 12:13:07
    2. Is Gentrification Good or Bad?
      by Jason Barr in Skynomics Blog on 2019-11-18 13:06:24

    Citations

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    Cited by:

    1. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    2. Jason Barr & Troy Tassier, 2010. "Endogenous Neighborhood Selection and the Attainment of Cooperation in a Spatial Prisoner’s Dilemma Game," Computational Economics, Springer;Society for Computational Economics, vol. 35(3), pages 211-234, March.
    3. Jason M. Barr, 2019. "Domenico Delli Gatti, Giorgio Fagiolo, Mauro Gallegati, Matteo Richiardi and Alberto Russo (eds): Agent-Based Models in Economics: A Toolkit," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 477-480, June.
    4. Grauwin, Sébastian & Goffette-Nagot, Florence & Jensen, Pablo, 2012. "Dynamic models of residential segregation: An analytical solution," Journal of Public Economics, Elsevier, vol. 96(1), pages 124-141.
    5. Florence Goffette-Nagot & Pablo Jensen & Sebastian Grauwin, 2009. "Dynamic models of residential segregation: Brief review, analytical resolution and study of the introduction of coordination," Post-Print halshs-00404400, HAL.

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    More about this item

    Keywords

    Schelling Tipping Model; Spatial Prisoner's Dilemma; Cooperation; Segregation;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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