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A SSORTATIVITY IN S OCIAL D ILEMMAS Alexandros Rigos University of Leicester Lund University (with Heinrich Nax, ETH Zrich) Controversies in Game Theory III 2016-06-01 HH N AX AND A R IGOS A SSORTATIVITY IN S OCIAL D ILEMMAS T ITLE I


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SLIDE 1

ASSORTATIVITY IN SOCIAL DILEMMAS

Alexandros Rigos University of Leicester → Lund University (with Heinrich Nax, ETH Zürich) Controversies in Game Theory III 2016-06-01

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS TITLE

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SLIDE 2

INTRODUCTION

THE TRAGEDY OF THE COMMONS

TRAGEDY OF THE COMMONS

A situation where individuals acting independently and rationally according to each’s self-interest behave contrary to the best interests of the whole group by depleting some common resource.

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INTRODUCTION

THE PRISONER’S DILEMMA AND THE TRAGEDY OF THE COMMONS

Arguably the best-known game in game theory is the Prisoner’s Dilemma (PD). It is the story of two “partners in crime” who the police has caught. They are being interrogated separately by the police.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate).

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). Prisoner B Prisoner A

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SLIDE 6

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). Prisoner B C D Prisoner A C D

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SLIDE 7

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). If both partners Cooperate, they get charged for some minor offence and they get 1 year in prison each. Prisoner B C D Prisoner A C D

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SLIDE 8

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). If both partners Cooperate, they get charged for some minor offence and they get 1 year in prison each. Prisoner B C D Prisoner A C

  • 1,-1

D

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SLIDE 9

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). If both partners Cooperate, they get charged for some minor offence and they get 1 year in prison each. If one partner Defects, the police let him to go free while his partner gets 5 years in prison. Prisoner B C D Prisoner A C

  • 1,-1

D

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). If both partners Cooperate, they get charged for some minor offence and they get 1 year in prison each. If one partner Defects, the police let him to go free while his partner gets 5 years in prison. Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

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SLIDE 11

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). If both partners Cooperate, they get charged for some minor offence and they get 1 year in prison each. If one partner Defects, the police let him to go free while his partner gets 5 years in prison. If both partners Defect, they get 4 years in prison each. Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Each can either say that his/her partner committed the crime (Defect) or to remain silent (Cooperate). If both partners Cooperate, they get charged for some minor offence and they get 1 year in prison each. If one partner Defects, the police let him to go free while his partner gets 5 years in prison. If both partners Defect, they get 4 years in prison each. Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

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SLIDE 13

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

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SLIDE 14

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

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SLIDE 15

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

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SLIDE 17

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

If Prisoner B Cooperates (plays C), Prisoner A would play D.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

If Prisoner B Cooperates (plays C), Prisoner A would play D. If Prisoner B plays D, Prisoner A would play D.

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SLIDE 19

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

If Prisoner B Cooperates (plays C), Prisoner A would play D. If Prisoner B plays D, Prisoner A would play D. The same goes for Prisoner B.

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SLIDE 20

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

If Prisoner B Cooperates (plays C), Prisoner A would play D. If Prisoner B plays D, Prisoner A would play D. The same goes for Prisoner B.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

If Prisoner B Cooperates (plays C), Prisoner A would play D. If Prisoner B plays D, Prisoner A would play D. The same goes for Prisoner B.

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SLIDE 22

INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

How would they choose if they

Act independenty of each other. Try to maximise the amount of time out of jail?

If Prisoner B Cooperates (plays C), Prisoner A would play D. If Prisoner B plays D, Prisoner A would play D. The same goes for Prisoner B. If both players best-respond to each other, the outcome is (D,D).

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

What is the problem?

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

What is the problem? In the outcome (Nash Equilibrium), they get 8 years in prison together.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

What is the problem? In the outcome (Nash Equilibrium), they get 8 years in prison together. By playing C, they could have been getting 2 years in prison together.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

What is the problem? In the outcome (Nash Equilibrium), they get 8 years in prison together. By playing C, they could have been getting 2 years in prison together. The incentives are not there for the “efficient” outcome to occur.

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INTRODUCTION

THE PD AND THE TRAGEDY OF THE COMMONS (CONT’D)

Prisoner B C D Prisoner A C

  • 1,-1
  • 5,0

D 0,-5

  • 4,-4

What is the problem? In the outcome (Nash Equilibrium), they get 8 years in prison together. By playing C, they could have been getting 2 years in prison together. The incentives are not there for the “efficient” outcome to occur. ⇒ Tragedy of the Commons.

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INTRODUCTION

PD WITH RANDOM INTERACTIONS LEADS TO TRAGEDY

OF THE COMMONS

Consider a large population playing a Prisoners’ Dilemma. C D C 9,9

  • 2,11

D 11,-2 0,0

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INTRODUCTION

PD WITH RANDOM INTERACTIONS LEADS TO TRAGEDY

OF THE COMMONS

Consider a large population playing a Prisoners’ Dilemma. C D C 9,9

  • 2,11

D 11,-2 0,0 They follow different strategies and meet at random.

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INTRODUCTION

PD WITH RANDOM INTERACTIONS LEADS TO TRAGEDY

OF THE COMMONS

Consider a large population playing a Prisoners’ Dilemma. C D C 9,9

  • 2,11

D 11,-2 0,0 They follow different strategies and meet at random. More successful strategies evolve more quickly (because of replication

  • r imitation).

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SLIDE 31

INTRODUCTION

PD WITH RANDOM INTERACTIONS LEADS TO TRAGEDY

OF THE COMMONS

Consider a large population playing a Prisoners’ Dilemma. C D C 9,9

  • 2,11

D 11,-2 0,0 They follow different strategies and meet at random. More successful strategies evolve more quickly (because of replication

  • r imitation).

The unique Nash equilibrium is D-D and all individuals following D is the unique Evolutionarily Stable Strategy (ESS).

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INTRODUCTION

PD WITH RANDOM INTERACTIONS LEADS TO TRAGEDY

OF THE COMMONS

Consider a large population playing a Prisoners’ Dilemma. C D C 9,9

  • 2,11

D 11,-2 0,0 They follow different strategies and meet at random. More successful strategies evolve more quickly (because of replication

  • r imitation).

The unique Nash equilibrium is D-D and all individuals following D is the unique Evolutionarily Stable Strategy (ESS). A population full of D-individuals cannot be invaded by C-individuals.

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SLIDE 33

INTRODUCTION

PD WITH RANDOM INTERACTIONS LEADS TO TRAGEDY

OF THE COMMONS

Consider a large population playing a Prisoners’ Dilemma. C D C 9,9

  • 2,11

D 11,-2 0,0 They follow different strategies and meet at random. More successful strategies evolve more quickly (because of replication

  • r imitation).

The unique Nash equilibrium is D-D and all individuals following D is the unique Evolutionarily Stable Strategy (ESS). A population full of D-individuals cannot be invaded by C-individuals. ⇒ Tragedy of the Commons.

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INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0

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SLIDE 35

INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0 . . . let individuals meet assortatively.

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SLIDE 36

INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0 . . . let individuals meet assortatively. Cs have higher chance (when compared to Ds) to meet Cs.

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SLIDE 37

INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0 . . . let individuals meet assortatively. Cs have higher chance (when compared to Ds) to meet Cs. Extreme case: Cs always meet Cs!

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SLIDE 38

INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0 . . . let individuals meet assortatively. Cs have higher chance (when compared to Ds) to meet Cs. Extreme case: Cs always meet Cs! Then efficient outcomes can be reached.

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SLIDE 39

INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0 . . . let individuals meet assortatively. Cs have higher chance (when compared to Ds) to meet Cs. Extreme case: Cs always meet Cs! Then efficient outcomes can be reached. ⇒ Assortativity can help overcome the tragedy of the commons.

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SLIDE 40

INTRODUCTION

ASSORTATIVITY AND THE TRAGEDY OF THE COMMONS

In the same PD as before.. . C D C 9,9

  • 2,11

D 11,-2 0,0 . . . let individuals meet assortatively. Cs have higher chance (when compared to Ds) to meet Cs. Extreme case: Cs always meet Cs! Then efficient outcomes can be reached. ⇒ Assortativity can help overcome the tragedy of the commons. Assortativity can be the outcome of different processes.

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SLIDE 41

INTRODUCTION

LOCAL INTERACTIONS

Interact mostly with your neighbours. (Boyd and Richerson, 2002; Grund, Waloszek, and Helbing, 2013)⇒ Spatial assortativity.

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SLIDE 42

INTRODUCTION

KIN SELECTION

Interact mostly with your relatives. (Hamilton, 1964)

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SLIDE 43

INTRODUCTION

GREENBEARD EFFECT

Recognise others’ types. (Dawkins, 1976)

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INTRODUCTION

HOMOPHILY

You mostly interact with people that are like you in some characteristic. Alger and Weibull (2012) (social preference assortativity)

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SLIDE 45

QUESTIONS

We know that assortativity (of any kind) can theoretically help resolve the Tragedy of the Commons. (Jensen and Rigos, 2014, among others)

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SLIDE 46

QUESTIONS

We know that assortativity (of any kind) can theoretically help resolve the Tragedy of the Commons. (Jensen and Rigos, 2014, among others) The assortativity level is usually taken as given.

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SLIDE 47

QUESTIONS

We know that assortativity (of any kind) can theoretically help resolve the Tragedy of the Commons. (Jensen and Rigos, 2014, among others) The assortativity level is usually taken as given. What levels of assortativity would be the outcomes of natural processes?

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SLIDE 48

QUESTIONS

We know that assortativity (of any kind) can theoretically help resolve the Tragedy of the Commons. (Jensen and Rigos, 2014, among others) The assortativity level is usually taken as given. What levels of assortativity would be the outcomes of natural processes? To what extent can populations endogenise the solution to a tragedy-of-the-commons problem?

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SLIDE 49

QUESTIONS

We know that assortativity (of any kind) can theoretically help resolve the Tragedy of the Commons. (Jensen and Rigos, 2014, among others) The assortativity level is usually taken as given. What levels of assortativity would be the outcomes of natural processes? To what extent can populations endogenise the solution to a tragedy-of-the-commons problem? ⇒ Endogenise assortativity

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SLIDE 50

MAIN IDEA

Study Social Dilemmas that differ in their

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SLIDE 51

MAIN IDEA

Study Social Dilemmas that differ in their

strategic structure

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SLIDE 52

MAIN IDEA

Study Social Dilemmas that differ in their

strategic structure efficiency structure

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SLIDE 53

MAIN IDEA

Study Social Dilemmas that differ in their

strategic structure efficiency structure

Let the population decide upon their own level of assortativity based on a “voting” rule.

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SLIDE 54

MAIN IDEA

Study Social Dilemmas that differ in their

strategic structure efficiency structure

Let the population decide upon their own level of assortativity based on a “voting” rule. Think about it as a system with agents who interact, get results and give feedback to a central planner.

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SLIDE 55

SOCIAL DILEMMAS

C D C r, r a, 1 D 1, a 0,0 We keep r ∈ (0, 1) and a ∈ (−1, r) so that C always increases the payoff of the other player (“public goods” character) D is always a best response to C

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SLIDE 56

SOCIAL DILEMMAS

SOCIAL DILEMMA CLASSIFICATION

C D C r, r a, 1 D 1, a 0,0 C D C 0.8, 0.8 − 0.2, 1 D 1, − 0.2 0,0

−1 −0.8 −0.6 −0.4 −0.2 0.2 0.4 0.6 0.8 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 a r a = 2r − 1 a = 0 a = r PD MHD SD UD

  • 1. Prisoners’ Dilemma (PD): 2r > 1 + a and a < 0.

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SLIDE 57

SOCIAL DILEMMAS

SOCIAL DILEMMA CLASSIFICATION

C D C r, r a, 1 D 1, a 0,0 C D C 0.3, 0.3 − 0.2, 1 D 1, − 0.2 0,0

−1 −0.8 −0.6 −0.4 −0.2 0.2 0.4 0.6 0.8 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 a r a = 2r − 1 a = 0 a = r PD MHD SD UD

  • 1. Prisoners’ Dilemma (PD): 2r > 1 + a and a < 0.
  • 2. Missing Hero Dilemma (MHD): 2r < 1 + a and a < 0.

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slide-58
SLIDE 58

SOCIAL DILEMMAS

SOCIAL DILEMMA CLASSIFICATION

C D C r, r a, 1 D 1, a 0,0 C D C 0.3, 0.3 0.2, 1 D 1, 0.2 0,0

−1 −0.8 −0.6 −0.4 −0.2 0.2 0.4 0.6 0.8 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 a r a = 2r − 1 a = 0 a = r PD MHD SD UD

  • 1. Prisoners’ Dilemma (PD): 2r > 1 + a and a < 0.
  • 2. Missing Hero Dilemma (MHD): 2r < 1 + a and a < 0.
  • 3. SnowDrift Game (SD): 2r < 1 + a and a > 0.

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slide-59
SLIDE 59

SOCIAL DILEMMAS

SOCIAL DILEMMA CLASSIFICATION

C D C r, r a, 1 D 1, a 0,0 C D C 0.8, 0.8 0.2, 1 D 1, 0.2 0,0

−1 −0.8 −0.6 −0.4 −0.2 0.2 0.4 0.6 0.8 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 a r a = 2r − 1 a = 0 a = r PD MHD SD UD

  • 1. Prisoners’ Dilemma (PD): 2r > 1 + a and a < 0.
  • 2. Missing Hero Dilemma (MHD): 2r < 1 + a and a < 0.
  • 3. SnowDrift Game (SD): 2r < 1 + a and a > 0.
  • 4. Underprovision Dilemma (UD): 2r > 1 + a and a > 0.

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slide-60
SLIDE 60

SOCIAL DILEMMAS

SOCIAL DILEMMA CLASSIFICATION

−1 −0.8 −0.6 −0.4 −0.2 0.2 0.4 0.6 0.8 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 a r a = 2r − 1 a = 0 a = r PD MHD SD UD

Efficient Outcome C-D (a > 2r − 1) C-C (a < 2r − 1) Best Reply C (a > 0) SD UD vs D D (a < 0) MHD PD

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SLIDE 61

MODEL

THE MODEL

Continuum of individuals in continuous time

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SLIDE 62

MODEL

THE MODEL

Continuum of individuals in continuous time x is the proportion of cooperators (C-individuals)

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SLIDE 63

MODEL

THE MODEL

Continuum of individuals in continuous time x is the proportion of cooperators (C-individuals) At each time t they get matched in pairs (how? → next slide)

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SLIDE 64

MODEL

THE MODEL

Continuum of individuals in continuous time x is the proportion of cooperators (C-individuals) At each time t they get matched in pairs (how? → next slide) More successful behaviour is imitated by more individuals ⇒ Replicator Dynamics ˙ x = x(1 − x)(πC − πD)

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SLIDE 65

MODEL

THE MODEL

Continuum of individuals in continuous time x is the proportion of cooperators (C-individuals) At each time t they get matched in pairs (how? → next slide) More successful behaviour is imitated by more individuals ⇒ Replicator Dynamics ˙ x = x(1 − x)(πC − πD) πC (πD) is the average payoff of Cooperators (Defectors) in the population.

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SLIDE 66

MODEL

THE MODEL

Continuum of individuals in continuous time x is the proportion of cooperators (C-individuals) At each time t they get matched in pairs (how? → next slide) More successful behaviour is imitated by more individuals ⇒ Replicator Dynamics ˙ x = x(1 − x)(πC − πD) πC (πD) is the average payoff of Cooperators (Defectors) in the population. We are looking for asymptotically stable states of the above dynamics.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 17 / 30

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SLIDE 67

MODEL

THE MODEL

Continuum of individuals in continuous time x is the proportion of cooperators (C-individuals) At each time t they get matched in pairs (how? → next slide) More successful behaviour is imitated by more individuals ⇒ Replicator Dynamics ˙ x = x(1 − x)(πC − πD) πC (πD) is the average payoff of Cooperators (Defectors) in the population. We are looking for asymptotically stable states of the above dynamics. These states generically exist.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 17 / 30

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SLIDE 68

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

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SLIDE 69

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

α = 0 → uniformly random matching (C’s and D’s have the same probability to meet C’s)

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 18 / 30

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SLIDE 70

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

α = 0 → uniformly random matching (C’s and D’s have the same probability to meet C’s) α = 1 → full assortativity (C’s meet C’s and D’s meet D’s for sure)

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 18 / 30

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SLIDE 71

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

α = 0 → uniformly random matching (C’s and D’s have the same probability to meet C’s) α = 1 → full assortativity (C’s meet C’s and D’s meet D’s for sure) More generally: α = Pr(C meets C) − Pr(D meets C)

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 18 / 30

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SLIDE 72

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

α = 0 → uniformly random matching (C’s and D’s have the same probability to meet C’s) α = 1 → full assortativity (C’s meet C’s and D’s meet D’s for sure) More generally: α = Pr(C meets C) − Pr(D meets C)

Proportions of pair types under assortative matching with assortativity α:

C-C: f1(x, α) = αx + (1 − α)x2 C-D: f2(x, α) = 2x(1 − x)(1 − α) D-D: f3(x, α) = α(1 − x) + (1 − α)(1 − x)2

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SLIDE 73

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

α = 0 → uniformly random matching (C’s and D’s have the same probability to meet C’s) α = 1 → full assortativity (C’s meet C’s and D’s meet D’s for sure) More generally: α = Pr(C meets C) − Pr(D meets C)

Proportions of pair types under assortative matching with assortativity α:

C-C: f1(x, α) = αx + (1 − α)x2 C-D: f2(x, α) = 2x(1 − x)(1 − α) D-D: f3(x, α) = α(1 − x) + (1 − α)(1 − x)2

πC(x, α) = (r · f1(x, α) + a · f2(x, α)/2)/x πD(x, α) = (0 · f3(x, α) + 1 · f2(x, α)/2)/(1 − x)

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 18 / 30

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SLIDE 74

MODEL

MATCHING

The matching process follows a rule with a constant index of assortativity α (∈ [0, 1]).

α = 0 → uniformly random matching (C’s and D’s have the same probability to meet C’s) α = 1 → full assortativity (C’s meet C’s and D’s meet D’s for sure) More generally: α = Pr(C meets C) − Pr(D meets C)

Proportions of pair types under assortative matching with assortativity α:

C-C: f1(x, α) = αx + (1 − α)x2 C-D: f2(x, α) = 2x(1 − x)(1 − α) D-D: f3(x, α) = α(1 − x) + (1 − α)(1 − x)2

πC(x, α) = (r · f1(x, α) + a · f2(x, α)/2)/x πD(x, α) = (0 · f3(x, α) + 1 · f2(x, α)/2)/(1 − x) In asymptotically stable states (ESS) of the dynamics: Higher assortativity ⇒ More Cooperators Higher efficiency (avg. payoff)

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SLIDE 75

MODEL

VOTING FOR ASSORTATIVITY

Now the population will get to (dynamically) select how assortativity itself evolves.

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SLIDE 76

MODEL

VOTING FOR ASSORTATIVITY

Now the population will get to (dynamically) select how assortativity itself evolves. Each individual gets one vote and can vote either for an increase or a decrease of assortativity.

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SLIDE 77

MODEL

VOTING FOR ASSORTATIVITY

Now the population will get to (dynamically) select how assortativity itself evolves. Each individual gets one vote and can vote either for an increase or a decrease of assortativity. They compare their payoff to the highest and the lowest payoff they can receive in the Social Dilemma.

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SLIDE 78

MODEL

VOTING FOR ASSORTATIVITY

Now the population will get to (dynamically) select how assortativity itself evolves. Each individual gets one vote and can vote either for an increase or a decrease of assortativity. They compare their payoff to the highest and the lowest payoff they can receive in the Social Dilemma. They vote using a logit choice rule based on the payoffs they receive.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 19 / 30

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SLIDE 79

MODEL

VOTING (FEEDBACK)

Agents matched in Homogeneous pairs (either C-C or D-D): probability to vote for an increase in assortativity increasing in payoff.

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SLIDE 80

MODEL

VOTING (FEEDBACK)

Agents matched in Homogeneous pairs (either C-C or D-D): probability to vote for an increase in assortativity increasing in payoff. Heterogeneous pairs (C-D): probability to vote for an increase in assortativity decreasing in payoff.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 20 / 30

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SLIDE 81

MODEL

VOTING (FEEDBACK)

Agents matched in Homogeneous pairs (either C-C or D-D): probability to vote for an increase in assortativity increasing in payoff. Heterogeneous pairs (C-D): probability to vote for an increase in assortativity decreasing in payoff. Example: A Defector gets matched to a Cooperator and receives the highest payoff in the game. Then, he/she votes for a decrease in assortativity for sure.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 20 / 30

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SLIDE 82

MODEL

COUNTING THE VOTES

v+: Number of votes for more assortativity v−: Number of votes for less assortativity

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SLIDE 83

MODEL

COUNTING THE VOTES

v+: Number of votes for more assortativity v−: Number of votes for less assortativity Assortativity follows a replicator-like dynamic based on the number of votes received: ˙ α = α(1 − α)(v+ − v−)

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SLIDE 84

MODEL

CO-EVOLUTION

˙ x = x(1 − x)(πC − πD) (1) ˙ α = α(1 − α)(v+ − v−) (2)

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SLIDE 85

RESULTS

FULL EQUILIBRIA

DEFINITION (FULL EQUILIBRIUM)

For a Social Dilemma G, a full equilibrium is a pair (x∗, α∗) that is an asymptotically stable solution of the system (1) – (2). In Social Dilemmas full equilibria always exist.

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SLIDE 86

RESULTS

FULL EQUILIBRIA

DEFINITION (FULL EQUILIBRIUM)

For a Social Dilemma G, a full equilibrium is a pair (x∗, α∗) that is an asymptotically stable solution of the system (1) – (2). In Social Dilemmas full equilibria always exist.

OBSERVATION

For any Social Dilemma G, all full equilibria have either α∗ = 0 (x0) or α∗ = 1 (x1).

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SLIDE 87

RESULTS

DYNAMICS

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α PD (r=0.30, a=-0.60)

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SLIDE 88

RESULTS

DYNAMICS

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α MHD (r=0.20, a=-0.40)

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SLIDE 89

RESULTS

DYNAMICS

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α SD (r=0.40, a=0.10)

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SLIDE 90

RESULTS

DYNAMICS

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α SD (r=0.55, a=0.40)

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SLIDE 91

RESULTS

DYNAMICS

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α SD (r=0.80, a=0.70)

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SLIDE 92

RESULTS

DYNAMICS

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α UD (r=0.80, a=0.40)

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SLIDE 93

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

We want to measure how stable are the possible outcomes (full equilibria).

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SLIDE 94

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

We want to measure how stable are the possible outcomes (full equilibria). Efficiency is increasing in equilibrium assortativity ⇒ Robustness of the equilibrium with α = 1 is a measure of efficiency.

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SLIDE 95

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

We want to measure how stable are the possible outcomes (full equilibria). Efficiency is increasing in equilibrium assortativity ⇒ Robustness of the equilibrium with α = 1 is a measure of efficiency. We use an invasion barrier approach.

FULL ASSORTATIVITY ROBUSTNESS

“What is the largest invasion a population at x1 can sustain?”

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SLIDE 96

RESULTS

FULL ASSORTATIVITY ROBUSTNESS – EXAMPLE

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α PD (r=0.30, a=-0.60)

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SLIDE 97

RESULTS

FULL ASSORTATIVITY ROBUSTNESS – EXAMPLE

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α PD (r=0.30, a=-0.60)

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SLIDE 98

RESULTS

FULL ASSORTATIVITY ROBUSTNESS – EXAMPLE

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α PD (r=0.30, a=-0.60)

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SLIDE 99

RESULTS

FULL ASSORTATIVITY ROBUSTNESS – EXAMPLE

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α PD (r=0.30, a=-0.60)

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SLIDE 100

RESULTS

FULL ASSORTATIVITY ROBUSTNESS – EXAMPLE

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 x α PD (r=0.30, a=-0.60) ̺G

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SLIDE 101

RESULTS

FULL ASSORTATIVITY ROBUSTNESS – RESULTS

−1 −0.5 0.5 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Payoff to a Cooperator facing a Defector (a) Payoff to a Cooperator facing a Cooperator (r) s = 1 0.2 0.4 0.6 0.8 1 Full assortativity robustness (̺) PD MHD SD UD

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SLIDE 102

RESULTS

DIFFERENT SPEEDS

What if behaviour (strategy) evolved at a different pace than assortativity?

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SLIDE 103

RESULTS

DIFFERENT SPEEDS

What if behaviour (strategy) evolved at a different pace than assortativity? We introduce a parameter s that shows this relative speed:

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SLIDE 104

RESULTS

DIFFERENT SPEEDS

What if behaviour (strategy) evolved at a different pace than assortativity? We introduce a parameter s that shows this relative speed: ˙ x = x(1 − x)(πC − πD) ˙ α = s · α(1 − α)(v+ − v−)

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SLIDE 105

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

−1 −0.5 0.5 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Payoff to a Cooperator facing a Defector (a) Payoff to a Cooperator facing a Cooperator (r) s = 0.01 0.2 0.4 0.6 0.8 1 Full assortativity robustness (̺) PD MHD SD UD

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SLIDE 106

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

−1 −0.5 0.5 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Payoff to a Cooperator facing a Defector (a) Payoff to a Cooperator facing a Cooperator (r) s = 0.1 0.2 0.4 0.6 0.8 1 Full assortativity robustness (̺) PD MHD SD UD

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SLIDE 107

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

−1 −0.5 0.5 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Payoff to a Cooperator facing a Defector (a) Payoff to a Cooperator facing a Cooperator (r) s = 1 0.2 0.4 0.6 0.8 1 Full assortativity robustness (̺) PD MHD SD UD

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SLIDE 108

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

−1 −0.5 0.5 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Payoff to a Cooperator facing a Defector (a) Payoff to a Cooperator facing a Cooperator (r) s = 10 0.2 0.4 0.6 0.8 1 Full assortativity robustness (̺) PD MHD SD UD

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SLIDE 109

RESULTS

FULL ASSORTATIVITY ROBUSTNESS

−1 −0.5 0.5 1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Payoff to a Cooperator facing a Defector (a) Payoff to a Cooperator facing a Cooperator (r) s = 100 0.2 0.4 0.6 0.8 1 Full assortativity robustness (̺) PD MHD SD UD

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SLIDE 110

CONCLUSION

CONCLUSION

We endogenised the level of assortativity for a matching process in democratic regimes.

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SLIDE 111

CONCLUSION

CONCLUSION

We endogenised the level of assortativity for a matching process in democratic regimes. For our class of social dilemmas only full or null assortativity can be stable.

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SLIDE 112

CONCLUSION

CONCLUSION

We endogenised the level of assortativity for a matching process in democratic regimes. For our class of social dilemmas only full or null assortativity can be stable. The endogenisation of assortativity can help mitigate tragedies of the commons

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SLIDE 113

CONCLUSION

CONCLUSION

We endogenised the level of assortativity for a matching process in democratic regimes. For our class of social dilemmas only full or null assortativity can be stable. The endogenisation of assortativity can help mitigate tragedies of the commons The situations it helps the most are UD and some SD. Partial help for

  • PD. No help for MHD.

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SLIDE 114

CONCLUSION

CONCLUSION

We endogenised the level of assortativity for a matching process in democratic regimes. For our class of social dilemmas only full or null assortativity can be stable. The endogenisation of assortativity can help mitigate tragedies of the commons The situations it helps the most are UD and some SD. Partial help for

  • PD. No help for MHD.

More often voting (feedback) helps mostly PDs with a < r − 1.

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SLIDE 115

FUTURE WORK

FUTURE

Theory: Find other ways to endogenise assortativity.

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SLIDE 116

FUTURE WORK

FUTURE

Theory: Find other ways to endogenise assortativity.

e.g. networks, matching/search models.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 30 / 30

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SLIDE 117

FUTURE WORK

FUTURE

Theory: Find other ways to endogenise assortativity.

e.g. networks, matching/search models.

Experiments: Test predictions of our endogenous assortativity model.

HH NAX AND A RIGOS ASSORTATIVITY IN SOCIAL DILEMMAS 30 / 30