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Stability Criteria for Social Norms with Applications to the Prisoner's Dilemma

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  • Daniel G. Arce M.

    (University of Alabama)

Abstract

This article introduces four criteria for characterizing social norms in both cooperative and noncooperative games. The criteria are hybrids of von Neumann and Morgenstern's notion of stability and Greenberg's theory of social situations. When applied to the three-player prisoner's dilemma, these criteria illustrate that Nash and strong Nash equilibrium behavior do not rule out the possibility of unilateral defection as a social norm. We conclude with a new type of equilibrium behavior that induces coalition building and leads to social norms that rule out unilateral defection and allow for cooperation.

Suggested Citation

  • Daniel G. Arce M., 1994. "Stability Criteria for Social Norms with Applications to the Prisoner's Dilemma," Journal of Conflict Resolution, Peace Science Society (International), vol. 38(4), pages 749-765, December.
    • Handle: RePEc:sae:jocore:v:38:y:1994:i:4:p:749-765
    DOI: 10.1177/0022002794038004008
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    References listed on IDEAS

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    1. Alvin E. Roth, 1976. "Subsolutions and the Supercore of Cooperative Games," Mathematics of Operations Research, INFORMS, vol. 1(1), pages 43-49, February.
    2. Greenberg, Joseph, 1989. "Deriving strong and coalition-proof nash equilibria from an abstract system," Journal of Economic Theory, Elsevier, vol. 49(1), pages 195-202, October.
    3. Bell, Clive & Zusman, Pinhas, 1976. "A Bargaining Theoretic Approach to Cropsharing Contracts," American Economic Review, American Economic Association, vol. 66(4), pages 578-588, September.
    4. Myerson, Roger B., 1982. "Optimal coordination mechanisms in generalized principal-agent problems," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 67-81, June.
    5. John C. Harsanyi, 1974. "An Equilibrium-Point Interpretation of Stable Sets and a Proposed Alternative Definition," Management Science, INFORMS, vol. 20(11), pages 1472-1495, July.
    6. George A. Akerlof, 1980. "A Theory of Social Custom, of which Unemployment may be One Consequence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 749-775.
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    Cited by:

    1. Luo, Xiao, 2001. "General systems and [phiv]-stable sets -- a formal analysis of socioeconomic environments," Journal of Mathematical Economics, Elsevier, vol. 36(2), pages 95-109, November.
    2. Todd Sandler, 1999. "Alliance Formation, Alliance Expansion, and the Core," Journal of Conflict Resolution, Peace Science Society (International), vol. 43(6), pages 727-747, December.
    3. repec:ehu:ikerla:6501 is not listed on IDEAS
    4. Daniel Bennett, 2012. "Does Clean Water Make You Dirty?: Water Supply and Sanitation in the Philippines," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 146-173.
    5. repec:ehu:ikerla:6490 is not listed on IDEAS
    6. Daniel G. Arce M., 1996. "Social Norms, Inflation And Stabilization," Rationality and Society, , vol. 8(3), pages 277-294, August.
    7. Edwin Woerdman, 2000. "Rationality And Stability In The Theory Of Moves," Rationality and Society, , vol. 12(1), pages 67-86, February.
    8. Daniel Arce, 1997. "Fiscal Pacts," Open Economies Review, Springer, vol. 8(3), pages 271-284, July.
    9. Toshiyuki Hirai, 2017. "The stable set of the social conflict game with commitments: existence, uniqueness, and efficiency," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(1), pages 149-166, March.

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