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Coalitions, tipping points and the speed of evolution

  • Newton, Jonathan
  • Angus, Simon D.

This study considers pure coordination games on networks and the waiting time for an adaptive process of strategic change to achieve efficient coordination. Although it is in the interest of every player to coordinate on a single globally efficient norm, coalitional behavior at a local level can greatly slow, as well as hasten convergence to efficiency. For some networks, when one action becomes efficient enough relative to the other, the effect of coalitional behavior changes abruptly from a conservative effect to a reforming effect. These effects are confirmed for a variety of stylized and empirical social networks found in the literature. For coordination games in which the Pareto efficient and risk dominant equilibria differ, polymorphic states can be the only stochastically stable states.

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Paper provided by University of Sydney, School of Economics in its series Working Papers with number 2013-02.

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Date of creation: Jan 2013
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Handle: RePEc:syd:wpaper:2123/8895
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  1. Newton, Jonathan & Angus, Simon D., 2015. "Coalitions, tipping points and the speed of evolution," Journal of Economic Theory, Elsevier, vol. 157(C), pages 172-187.
  2. Marianna Belloc & Samuel Bowles, 2013. "The Persistence of Inferior Cultural-Institutional Conventions," American Economic Review, American Economic Association, vol. 103(3), pages 93-98, May.
  3. Roberto Serrano & Oscar Volij, 2008. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economic Journal, Royal Economic Society, vol. 118(532), pages 1719-1741, October.
  4. Klaus Bettina & Klijn Flip & Walzl Markus, 2008. "Stochastic Stability for Roommate Markets," Research Memorandum 010, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  5. Peski, Marcin, 2010. "Generalized risk-dominance and asymmetric dynamics," Journal of Economic Theory, Elsevier, vol. 145(1), pages 216-248, January.
  6. Kandori, M. & Mailath, G.J., 1991. "Learning, Mutation, And Long Run Equilibria In Games," Papers 71, Princeton, Woodrow Wilson School - John M. Olin Program.
  7. Newton, Jonathan, 2012. "Recontracting and stochastic stability in cooperative games," Journal of Economic Theory, Elsevier, vol. 147(1), pages 364-381.
  8. Newton, Jonathan, 2012. "Coalitional stochastic stability," Games and Economic Behavior, Elsevier, vol. 75(2), pages 842-854.
  9. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September.
  10. Sung-Ha Hwang, 2011. "Larger groups may alleviate collective action problems," Working Papers 1113, Research Institute for Market Economy, Sogang University.
  11. H Peyton Young & Gabriel E. Kreindler, 2011. "Fast Convergence in Evolutionary Equilibrium Selection," Economics Series Working Papers 569, University of Oxford, Department of Economics.
  12. Newton, Jonathan & Sawa, Ryoji, 2015. "A one-shot deviation principle for stability in matching problems," Journal of Economic Theory, Elsevier, vol. 157(C), pages 1-27.
  13. Sawa, Ryoji, 2014. "Coalitional stochastic stability in games, networks and markets," Games and Economic Behavior, Elsevier, vol. 88(C), pages 90-111.
  14. repec:bla:restud:v:67:y:2000:i:1:p:17-45 is not listed on IDEAS
  15. Jackson, Matthew O., 1998. "The Evolution of Social and Economic Networks," Working Papers 1044, California Institute of Technology, Division of the Humanities and Social Sciences.
  16. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
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