 Incentives to Cooperate in Network FormationHaydée Lugo
No 181, Computing in Economics and Finance 2005 from Society for Computational Economics Abstract: We propose a mechanism based on taxes and subsidies that enhances high cooperation in evolutionary networks. The interactions among agents are based on a Prisoners' Dilemma game in which each agent plays the same strategy with its local neighbors, collects an aggregate payoff and imitates the strategy of its best neighbor. The network can be adaptive if agents are able to change their local neighborhood according to their satisfaction level and the strategy played. The condition, in order to obtain highly cooperative non-taxed networks in the long-run time, is that the initial fraction of cooperators has to be sufficiently high. Focussing on this restriction, the implementation of our mechanism produces successful results, a highly cooperative network is reached. Additionally, we observe that the mechanism slightly affects the macrostructure of networks once they have reached a sufficiently high fraction of cooperative agents, this suggests that the mechanism could be implemented only for a short finite period of time. Keywords: Prisoners' Dilemma; Adaptive Network; Taxes-subsidies Scheme (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sce:scecf5:181 Access Statistics for this paper More papers in Computing in Economics and Finance 2005 from Society for Computational Economics Contact information at EDIRC. |
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