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Cooperation and Cultural Transmission in a Coordination Game

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  • Olcina Vauteren Gonzalo

    (ESTRUCTURA DE RECERCA INTERDISCIPLINAR, COMPORTAMENT ECONÒMIC - SOCIAL (ERI - CES) UNIVERSITY OF VALENCIA)

  • Calabuig Alcántara Vicente

    (ESTRUCTURA DE RECERCA INTERDISCIPLINAR, COMPORTAMENT ECONÒMIC-SOCIAL (ERI-CES) UNIVERSITY OF VALENCIA)

Abstract

We present an overlapping generations model with cultural transmission of preferences, in which players face in each period a two-stage coordination game that consists of a production stage followed by a distribution phase. In the globally stable steady state of society, there will be a mixed distribution of preferences where both selfish and other-regarding preference sare present and, more importantly, players coordinate on the cooperative equilibrium of the coordination game. The presence of a significant fraction of individuals with other-regarding preferences acts as a stock of social capital in the society, reducing personal risk. If the proportion of selfish individuals in the initial condition of the dynamics is very high, there is still multiplicity of equilibria. We show that if there is heterogeneity in the behavior among groups and a positive rate of migration, then all groups will converge to the cooperative result.

Suggested Citation

  • Olcina Vauteren Gonzalo & Calabuig Alcántara Vicente, 2007. "Cooperation and Cultural Transmission in a Coordination Game," Working Papers 201066, Fundacion BBVA / BBVA Foundation.
    • Handle: RePEc:fbb:wpaper:201066
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    References listed on IDEAS

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    Cited by:

    1. Conley, John P. & Neilson, William S., 2013. "Endogenous coordination and discoordination games: Multiculturalism and assimilation," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 176-191.
    2. Xu, Yan & Hu, Bin & Wu, Jiang & Zhang, Jianhua, 2014. "Nonlinear analysis of the cooperation of strategic alliances through stochastic catastrophe theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 400(C), pages 100-108.
    3. Hiller, Victor, 2011. "Work organization, preferences dynamics and the industrialization process," European Economic Review, Elsevier, vol. 55(7), pages 1007-1025.
    4. Fabrizio Panebianco, 2016. "The role of persuasion in cultural evolution dynamics," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(3), pages 233-258, September.
    5. Panebianco, Fabrizio, 2014. "Socialization networks and the transmission of interethnic attitudes," Journal of Economic Theory, Elsevier, vol. 150(C), pages 583-610.
    6. Garret Ridinger, 2018. "Cultural Transmission and Extortion," Games, MDPI, vol. 9(3), pages 1-10, July.

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    More about this item

    Keywords

    Cooperation; coordination game; social capital; social preferences; cultural transmission.;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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