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Sort out your neighbourhood: public good games on dynamic networks

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  • Spiekermann, Kai

Abstract

Axelrod (The evolution of cooperation, 1984) and others explain how cooperation can emerge in repeated 2-person prisoner’s dilemmas. But in public good games with anonymous contributions, we expect a breakdown of cooperation because direct reciprocity fails. However, if agents are situated in a social network determining which agents interact, and if they can influence the network, then cooperation can be a viable strategy. Social networks are modelled as graphs. Agents play public good games with their neighbours. After each game, they can terminate connections to others, and new connections are created. Cooperative agents do well because they manage to cluster with cooperators and avoid defectors. Computer simulations demonstrate that group formation and exclusion are powerful mechanisms to promote cooperation in dilemma situations. This explains why social dilemmas can often be solved if agents can choose with whom they interact.

Suggested Citation

  • Spiekermann, Kai, 2009. "Sort out your neighbourhood: public good games on dynamic networks," LSE Research Online Documents on Economics 26739, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:26739
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    File URL: http://eprints.lse.ac.uk/26739/
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    Cited by:

    1. Elsner, Wolfram & Schwardt, Henning, 2012. "Trust and Arena Size. Expectations, Trust, and Institutions Co-Evolving, and Their Critical Population and Group Sizes," MPRA Paper 40393, University Library of Munich, Germany.
    2. Schimit, P.H.T. & Santos, B.O. & Soares, C.A., 2015. "Evolution of cooperation in Axelrod tournament using cellular automata," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 437(C), pages 204-217.
    3. Elsner, Wolfram & Heinrich, Torsten, 2009. "A simple theory of 'meso'. On the co-evolution of institutions and platform size--With an application to varieties of capitalism and 'medium-sized' countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(5), pages 843-858, October.
    4. Li, Yixiao & Shen, Bin, 2013. "The coevolution of partner switching and strategy updating in non-excludable public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(20), pages 4956-4965.

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