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Evolution of cooperation in rotating indivisible goods game
Shimpei Koike1, Mayuko Nakamaru, Masahiro Tsujimoto
1Department of Value and Decision Science, Tokyo Institute of Technology, 2-12-1, O-okayama, Meguro, Tokyo 152-8552, Japan. koike_s_aa@yahoo.co.jp
Journal of Theoretical Biology
|January 13, 2010
Summary
Cooperation in rotating indivisible goods games is sustained by combining peer selection and forfeiture rules. These mechanisms ensure contributions and prevent defection, promoting collective behavior in novel game designs.
Area of Science:
- Behavioral Economics
- Game Theory
- Social Dynamics
Background:
- Collective behavior is often studied using public goods games.
- Indivisible goods present distribution challenges not addressed by traditional models.
- Rotating Savings and Credit Associations (ROSCAs) offer a real-world parallel for distributing indivisible goods.
Purpose of the Study:
- Propose and analyze a "rotating indivisible goods game" to study cooperation.
- Investigate mechanisms for sustaining cooperation in this new game model.
- Evaluate the effectiveness of peer selection and forfeiture rules.
Main Methods:
- Evolutionary simulations were employed to model the game dynamics.
- Analysis focused on the impact of peer selection rules (group and individual reputation-based selection).
- The study introduced and tested a forfeiture rule, excluding non-contributors from receiving goods.
Main Results:
- Peer selection alone, regardless of the rule, did not sustain cooperation.
- The combination of peer selection and the forfeiture rule effectively sustained cooperation.
- Neither rule was sufficient on its own to maintain cooperative behavior.
Conclusions:
- Cooperation in rotating indivisible goods games requires a dual approach: reputation-based peer selection and a forfeiture rule.
- Evolutionary simulations are a valuable tool for designing institutions that foster cooperation.
- The findings offer insights into informal institutions like ROSCAs.
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