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Coalitions, tipping points and the speed of evolution

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  • Newton, Jonathan
  • Angus, Simon D.

Abstract

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.

Suggested Citation

  • Newton, Jonathan & Angus, Simon D., 2013. "Coalitions, tipping points and the speed of evolution," Working Papers 2013-02, University of Sydney, School of Economics.
  • Handle: RePEc:syd:wpaper:2123/8895
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    References listed on IDEAS

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    8. Sung Ha Hwang, 2009. "Larger groups may alleviate collective action problems," UMASS Amherst Economics Working Papers 2009-05, University of Massachusetts Amherst, Department of Economics.
    9. Sawa, Ryoji, 2014. "Coalitional stochastic stability in games, networks and markets," Games and Economic Behavior, Elsevier, vol. 88(C), pages 90-111.
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    Cited by:

    1. repec:spr:joecth:v:64:y:2017:i:3:d:10.1007_s00199-016-0988-x is not listed on IDEAS
    2. Hwang, Sung-Ha & Lim, Wooyoung & Neary, Philip & Newton, Jonathan, 2016. "Conventional Contracts, Intentional behavior and Logit Choice: Equality Without Symmetry," Working Papers 2016-13, University of Sydney, School of Economics.
    3. 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.
    4. Sung-Ha Hwang & Jonathan Newton, 2017. "Payoff-dependent dynamics and coordination games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(3), pages 589-604, October.
    5. Goyal, S. & Hernández, P. & Muñnez-Cánovasz, G. & Moisan, F., 2017. "Integration and Segregation," Cambridge Working Papers in Economics 1721, Faculty of Economics, University of Cambridge.
    6. Newton, Jonathan, 2017. "Shared intentions: The evolution of collaboration," Games and Economic Behavior, Elsevier, vol. 104(C), pages 517-534.
    7. Newton, Jonathan & Wait, Andrew & Angus, Simon D., 2016. "Watercooler chat, organizational structure and corporate culture," Working Papers 2016-03, University of Sydney, School of Economics.
    8. repec:jmi:articl:jmi-v2i1a5 is not listed on IDEAS

    More about this item

    Keywords

    social networks; networks; conservatism; reform; social norm; coalition; learning; Stochastic stability; Evolution;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • 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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