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Self-organized cooperative behavior and critical penalty in an evolving population

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  • Xu, Chen
  • Hui, P.M.
  • Yu, You-Yang
  • Gu, Guo-Qing

Abstract

The emergence of cooperation and the effectiveness of penalties among competing agents are studied via a model of evolutionary game incorporating adaptive behavior and penalties for illegal acts. For initially identical agents, a phase diagram is obtained via an analytic approach, with results in good agreement with numerical simulations. The results show that there exists a critical penalty for achieving a completely honest population and a sufficiently well-behaved initial population requires no penalty. Self-organized segregation to extreme actions emerges in the dynamics for a system with uniformly distributed initial tendencies for cooperation. After training, the penalty can be relaxed without ruining the adapted cooperative behavior. Results of our model in a population taking on the form of a 2D square lattice are also reported.

Suggested Citation

  • Xu, Chen & Hui, P.M. & Yu, You-Yang & Gu, Guo-Qing, 2009. "Self-organized cooperative behavior and critical penalty in an evolving population," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(20), pages 4445-4452.
    • Handle: RePEc:eee:phsmap:v:388:y:2009:i:20:p:4445-4452
    DOI: 10.1016/j.physa.2009.07.013
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    References listed on IDEAS

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    1. Johnson, Neil F. & Jefferies, Paul & Hui, Pak Ming, 2003. "Financial Market Complexity," OUP Catalogue, Oxford University Press, number 9780198526650.
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    Cited by:

    1. Zhang, H.S. & Shen, X.Y. & Huang, J.P., 2016. "Pattern of trends in stock markets as revealed by the renormalization method," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 456(C), pages 340-346.
    2. Wei, J.R. & Huang, J.P. & Hui, P.M., 2013. "An agent-based model of stock markets incorporating momentum investors," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(12), pages 2728-2735.

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    Keywords

    Self-organized cooperation; Penalty;

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