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The Open Method of Coordination (OMC) as an Evolutionary Learning Process

Ana Ania () and Andreas Wagener

Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Abstract: We interpret the Open Method of Coordination (OMC), recently adopted by the EU as a mode of governance in the area of social policy and other fields, as an imitative learning dynamics of the type considered in evolutionary game theory. The best-practise feature and the iterative design of the OMC correspond to the behavioral rule "imitate the best." In a redistribution game with utilitarian governments and mobile welfare beneficiaries, we compare the outcomes of imitative behavior (long-run evolutionary equilibrium), decentralized best-response behavior (Nash equilibrium), and coordinated policies. The main result is that the OMC allows policy coordination on a strict subset of the set of Nash equilibria, favoring in particular coordination on intermediate values of the policy instrument.

Keywords: Open Method of Coordination; Finite-population Evolutionarily Stable Strategy; Imitation; Mobility; Redistribution (search for similar items in EconPapers)
JEL-codes: C73 H75 H77 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2009-04
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http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-416.pdf (application/pdf)

Related works:
Working Paper: The Open Method of Coordination (OMC) as an Evolutionary Learning Process (2009) Downloads
Working Paper: The Open Method of Coordination (OMC) as an Evolutionary Learning Process (2009)
Working Paper: The Open Method of Coordination (OMC) as an Evolutionary Learning Process (2009) Downloads
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