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Cooperation, punishment and immigration

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  • Pin, Paolo
  • Rogers, Brian W.

Abstract

We study the incentive to cooperate in a society comprised of citizens and immigrants. The level of cooperation is governed by a steady state under population dynamics, along with the behavior of individual citizens and immigrants. We provide an equilibrium characterization, exhibiting a uniquely determined positive level of cooperation in society. We then use this framework to study the impact of government programs aimed at punishing immigrants who defect. When agents produce offspring, we show that a consequence of such punishment is that, while the incentive for immigrants to defect decreases, there is an equilibrium substitution effect whereby citizens realize an increased incentive to defect.

Suggested Citation

  • Pin, Paolo & Rogers, Brian W., 2015. "Cooperation, punishment and immigration," Journal of Economic Theory, Elsevier, vol. 160(C), pages 72-101.
    • Handle: RePEc:eee:jetheo:v:160:y:2015:i:c:p:72-101
    DOI: 10.1016/j.jet.2015.07.002
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    2. Bilancini, Ennio & Boncinelli, Leonardo & Wu, Jiabin, 2018. "The interplay of cultural intolerance and action-assortativity for the emergence of cooperation and homophily," European Economic Review, Elsevier, vol. 102(C), pages 1-18.

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    More about this item

    Keywords

    Dynamic games; Network formation; Social behavior;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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