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The evolution of taking roles

Author

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  • Herold, Florian
  • Kuzmics, Christoph
Abstract
Individuals engage in an ex-ante symmetric situation, in which in addition to a symmetric equilibrium there are also asymmetric equilibria. Individuals can assume one of a finite set of payoff irrelevant publicly observable labels and can condition their action choice on their own assumed label as well as the label of their opponent. We study evolutionary (and neutrally) stable strategies of such games. While the formal analysis is similar to the analysis of cheap talk games with evolutionary equilibrium selection, we are here mostly interested in the social structure that underlies such equilibria. For the class of 2 × 2 games with asymmetric pure strategy equilibria (hawk-dove games) we find a key distinction between two subclasses. While the best-response structure is identical for both subclasses, the evolution is quite different for hawk-dove games in which if you play dove you would prefer the opponent to play hawk (we call these anti-coordination games), and hawk dove games in which you always prefer the opponent to choose dove (we call them conflict games). Two social structures of particular interest are a hierarchical structure and an egalitarian structure. Furthermore, complex social structures composed of simpler substructures can emerge and we characterize their evolutionary stability. We discuss when they are evolutionary stable and the consequences of different structures for welfare.

Suggested Citation

  • Herold, Florian & Kuzmics, Christoph, 2016. "The evolution of taking roles," BERG Working Paper Series 115, Bamberg University, Bamberg Economic Research Group.
    • Handle: RePEc:zbw:bamber:115
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    Cited by:

    1. Martin Carolin & Westerhoff Frank, 2019. "Regulating Speculative Housing Markets via Public Housing Construction Programs: Insights from a Heterogeneous Agent Model," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(4), pages 627-660, August.
    2. March, Christoph & Sahm, Marco, 2018. "Contests as selection mechanisms: The impact of risk aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 114-131.
    3. Roberto Dieci & Noemi Schmitt & Frank Westerhoff, 2018. "Steady states, stability and bifurcations in multi-asset market models," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 357-378, November.
    4. Hommes, Cars & Lustenhouwer, Joep & Mavromatis, Kostas, 2018. "Fiscal consolidations and heterogeneous expectations," Journal of Economic Dynamics and Control, Elsevier, vol. 87(C), pages 173-205.
    5. Srinivas Arigapudi & Yuval Heller & Amnon Schreiber, 2021. "Sampling dynamics and stable mixing in hawk-dove games," Papers 2107.08423, arXiv.org, revised Jun 2022.
    6. Mundt, Philipp & Alfarano, Simone & Milaković, Mishael, 2020. "Exploiting ergodicity in forecasts of corporate profitability," Journal of Economic Dynamics and Control, Elsevier, vol. 111(C).
    7. Herold, Florian & Kuzmics, Christoph, 2024. "Farkas' lemma and complete indifference," BERG Working Paper Series 191, Bamberg University, Bamberg Economic Research Group.
    8. Lustenhouwer, Joep & Mavromatis, Kostas, 2017. "Fiscal consolidations and finite planning horizons," BERG Working Paper Series 130, Bamberg University, Bamberg Economic Research Group.
    9. Srinivas Arigapudi & Yuval Heller & Amnon Schreiber, 2023. "Heterogeneous Noise and Stable Miscoordination," Papers 2305.10301, arXiv.org.
    10. Mundt, Philipp & Oh, Ilfan, 2019. "Asymmetric competition, risk, and return distribution," BERG Working Paper Series 145, Bamberg University, Bamberg Economic Research Group.
    11. Sahm, Marco, 2017. "Risk aversion and prudence in contests," BERG Working Paper Series 120, Bamberg University, Bamberg Economic Research Group.
    12. Manuel Staab, 2023. "Evolution of Risk-Taking Behaviour and Status Preferences in Anti-coordination Games," Dynamic Games and Applications, Springer, vol. 13(4), pages 1320-1342, December.
    13. Proaño, Christian R. & Lojak, Benjamin, 2020. "Animal spirits, risk premia and monetary policy at the zero lower bound," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 221-233.
    14. March, Christoph & Sahm, Marco, 2017. "Asymmetric discouragement in asymmetric contests," Economics Letters, Elsevier, vol. 151(C), pages 23-27.
    15. Hommes, Cars & Lustenhouwer, Joep, 2019. "Managing unanchored, heterogeneous expectations and liquidity traps," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 1-16.
    16. Arigapudi, Srinivas & Heller, Yuval & Schreiber, Amnon, 2021. "Sampling Dynamics and Stable Mixing in Hawk–Dove Games," MPRA Paper 108819, University Library of Munich, Germany.
    17. Sahm, Marco, 2017. "Are sequential round-robin tournaments discriminatory?," BERG Working Paper Series 121, Bamberg University, Bamberg Economic Research Group.
    18. Sahm, Marco, 2016. "Advance-purchase financing of projects with few buyers," BERG Working Paper Series 118, Bamberg University, Bamberg Economic Research Group.

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    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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