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Constrained Interactions and Social Coordination

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  • Staudigl, Mathias
  • Weidenholzer, Simon

Abstract

We consider a co-evolutionary model of social coordination and network formation where agents may decide on an action in a 2x2 - coordination game and on whom to establish costly links to. We fi nd that a payo ff dominant convention is selected for a wider parameter range when agents may only support a limited number of links as compared to a scenario where agents are not constrained in their linking choice. The main reason behind this result is that under constrained interactions agents face a trade-off between the links they have and those they would rather have.

Suggested Citation

  • Staudigl, Mathias & Weidenholzer, Simon, 2013. "Constrained Interactions and Social Coordination," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79822, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc13:79822
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    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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