This paper discusses the relation between communication and preservation of social norms guarded by third-party sanctions. In 2001 Jonathan Bendor and Piotr Swistak derived deductively the existence of such norms from a simple boundedly rational choice model. Their analysis was based on a perfect public information case. We take into account communication and analyse at the micro level the process of production and interpretation of information on which decisions are based. We show that when information is fully private and we allow for communication a state of anomie can result. If some social control mechanisms are available, social stability can be maintained. The less efficient the social control mechanisms however, the more restrictive rules will be needed to sustain the social norms. Furthermore not all cognitive strategies for interpreting received messages are equally effective. Strategies based on reputation are better than strategies based on profit analysis.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Abramczuk K. (2003). Mechanizmy kontroli społecznej z perspektywy teorii gier (Unpublished master’s thesis). Instytut Socjologii Uniwersytet Warszawski.
Abreu D. Pearce D. & Stacchetti E. (1990). Toward a theory of discounted repeated games with imperfect monitoring. Econometrica: Journal of the Econometric Society 58 (5) 1041-1063.
Alexander R. D. (1987). The biology of moral systems. New York: Aldine de Gruyter.
Aumann R. J. (1959). Acceptable points in general cooperative n-person games. Contributions to the Theory of Games (AM-40) 4 287.
Awaya Y. (2014). Private monitoring and communication in repeated prisoners’ dilemma (Tech. Rep.). Working Paper Penn State University http://www.personal.psu.edu/yxa120/research.html.
Axelrod R. & Hamilton W. D. (1981). The evolution of cooperation. Science 211 1390-1396.
Axelrod R. M. (1984). The evolution of cooperation. New York: Basic Books.
Bendor J. & Swistak P. (1998). Evolutionary equilibria: Characterization theorems and their implications. Theory and decision 45(2) 99-159.
Bendor J. & Swistak P. (2000). The impossibility of pure homo economicus. In Annual meeting of the american political science association. Marriott Wardman Park.
Bendor J. & Swistak P. (2001). The evolution of norms. American Journal of Sociology 106(6) 1493-1545.
Ben-Porath E. & Kahneman M. (1996). Communication in repeated games with private monitoring. Journal of Economic Theory 70(2) 281-297.
Boyd R. & Lorberbaum J. P. (1987). No pure strategy is evolutionarily stable in the repeated prisoner’s dilemma game. Nature 327 58-59.
Boyd R. & Richerson P. J. (1992). Punishment allows the evolution of cooperation (or anything else) in sizable groups. Ethology and sociobiology 13(3) 171-195.
Coleman J. S. (1990). Foundations of social theory. CambridgeMass.: The Belknap Press of Harvard University Press.
Compte O. (1998). Communication in repeated games with imperfect private monitoring. Econometrica 66(3) 597-626.
Fehr E. Fischbacher U. & G¨achter S. (2002). Strong reciprocity. Human Nature 13 1-25. Fudenberg D. & Maskin E. (1986). The folk theorem in repeated games with discounting or with incomplete information. Econometrica: Journal of the Econometric Society 54(3) 533-554.
Gintis H. (2000). Strong reciprocity and human sociality. Journal of Theoretical Biology 206(2) 169-179.
Hamilton W. D. (1964). Genetical evolution of social behavior i ii. Journal of Theoretical Biology 7(1) 1-52.
Henrich J. & Boyd R. (2001). Why people punish defectors: Weak conformist transmission can stabilize costly enforcement of norms in cooperative dilemmas. Journal of Theoretical Biology 208(1) 79-89.
Hertwig R. Hoffrage U. & the ABC Research Group (Eds.). (2013). Simple heuristics in a social world. New York: Oxford University Press.
Homans G. C. (1950). The human group. Harcourt: Brace and Company.
Kahneman D. (2003). Maps of bounded rationality: Psychology for behavioural economics. The American economic review 93(5) 1449-1475.
Kandori M. (1992). Social norms and community enforcement. The Review of Economic Studies 59(1) 63-80.
Kandori M. (2002). Introduction to repeated games with private monitoring. Journal of Economic Theory 102(1) 1-15.
Kandori M. & Matsushima H. (1998). Private observation communication and collusion. Econometrica 66(3) 627-652.
Leimar O. & Hammerstein P. (2001). volution of cooperation through indirect reciprocity. Proceedings of the Royal Society of London: Biological Sciences 268 745-753.
McLean R. Obara I. & Postlewaite A. (2014). Robustness of public equilibria in repeated games with private monitoring. Journal of Economic Theory 153 191-212.
Merton R. K. (1968). Social theory and social structure. New York: The Free Press. Nowak M. A. & Sigmund K. (1998). Evolution of indirect reciprocity by image scoring. Nature 393 573-577.
Obłoj J. (2004). Normy społeczne i kontrola zachowań w ujęciu dedukcyjnym (Unpublished master’s thesis). Instytut Socjologii Uniwersytet Warszawski.
Okuno-Fujiwara M. & Postlewaite A. (1995). Social norms and random matching games. Games and Economic behavior 9(1) 79-109.
Riolo R. L. Cohen M. D. & Axelrod R. (2001). Evolution of cooperation without reciprocity. Nature 414(22) 441-443.
Sober E. & Wilson D. S. (1998). Unto others - the evolution and psychology of unselfish behavior. Cambridge: Harvard University Press.
Sudgen R. (1985). Review of the economics of conformism. Economic Journal 95 502-504.
Sugaya T. & Wolitzky A. (in press). Bounding equilibrium payoffs in repeated games with private monitoring. Theoretical Economics.
Trivers R. (1971). The evolution of reciprocal altruism. Quarterly Review of Biology 46 35-57.