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Constrained Interactions and Social Coordination

  • Staudigl, Mathias
  • Weidenholzer, Simon

We consider a co-evolutionary model of social coordination and network formation where agents may decide on an action in a 2x2 - coordination game and on whom to establish costly links to. We fi nd that a payo ff dominant convention is selected for a wider parameter range when agents may only support a limited number of links as compared to a scenario where agents are not constrained in their linking choice. The main reason behind this result is that under constrained interactions agents face a trade-off between the links they have and those they would rather have.

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File URL: http://econstor.eu/bitstream/10419/79822/1/VfS_2013_pid_586.pdf
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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79822.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79822
Contact details of provider: Web page: http://www.socialpolitik.org/
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  11. Ahmed Anwar, 2004. "On the Co-Existence of Conventions," ESE Discussion Papers 68, Edinburgh School of Economics, University of Edinburgh.
  12. Staudigl, Mathias, 2011. "Potential games in volatile environments," Games and Economic Behavior, Elsevier, vol. 72(1), pages 271-287, May.
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  14. Goyal, Sanjeev & Vega-Redondo, Fernando, 2005. "Network formation and social coordination," Games and Economic Behavior, Elsevier, vol. 50(2), pages 178-207, February.
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  17. Eshel, Ilan & Samuelson, Larry & Shaked, Avner, 1998. "Altruists, Egoists, and Hooligans in a Local Interaction Model," American Economic Review, American Economic Association, vol. 88(1), pages 157-79, March.
  18. Hojman, Daniel & Szeidl, Adam, 2006. "Core and Periphery in Endogenous Networks," Working Paper Series rwp06-022, Harvard University, John F. Kennedy School of Government.
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