Assortative Interactions and Endogenous Stratification

نویسنده

  • SUSAN LEE
چکیده

Economic status can influence one’s opportunities for interaction with others. We present an evolutionary model of endogenous stratification based on wealth-specific assortative interactions. Players are more likely to be matched with others with similar wealth. Heterogeneity in strategies and wealth is generated by the interplay of two countervailing forces: strategic risk and assortative interactions. The greater risk associated with the payoff-dominant equilibrium leads some players to become trapped in an inferior equilibrium. Economic class acts as a coordinating device which allows an upper class to maintain confidence in the efficient equilibrium by excluding others from

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تاریخ انتشار 2002