Search results for "microeconomics"
showing 10 items of 442 documents
Hierarchy is Detrimental for Human Cooperation
2015
Studies of animal behavior consistently demonstrate that the social environment impacts cooperation, yet the effect of social dynamics has been largely excluded from studies of human cooperation. Here, we introduce a novel approach inspired by nonhuman primate research to address how social hierarchies impact human cooperation. Participants competed to earn hierarchy positions and then could cooperate with another individual in the hierarchy by investing in a common effort. Cooperation was achieved if the combined investments exceeded a threshold, and the higher ranked individual distributed the spoils unless control was contested by the partner. Compared to a condition lacking hierarchy, c…
Private information alone can trigger trapping of ant colonies in local feeding optima.
2015
Ant colonies are famous for using trail pheromones to make collective decisions. Trail pheromone systems are characterised by positive feedback, which results in rapid collective decision making. However, in an iconic experiment, ants were shown to become 'trapped' in exploiting a poor food source, if it was discovered earlier. This has conventionally been explained by the established pheromone trail becoming too strong for new trails to compete. However, many social insects have a well-developed memory, and private information often overrules conflicting social information. Thus, route memory could also explain this collective 'trapping' effect. Here, we disentangled the effects of social …
Symmetry breaking in mass-recruiting ants: extent of foraging biases depends on resource quality.
2016
Abstract The communication involved in the foraging behaviour of social insects is integral to their success. Many ant species use trail pheromones to make decisions about where to forage. The strong positive feedback caused by the trail pheromone is thought to create a decision between two or more options. When the two options are of identical quality, this is known as symmetry breaking, and is important because it helps colonies to monopolise food sources in a competitive environment. Symmetry breaking is thought to increase with the quantity of pheromone deposited by ants, but empirical studies exploring the factors affecting symmetry breaking are limited. Here, we tested if (i) greater …
Mixed company : a framework for understanding the composition and organization of mixed‐species animal groups
2020
Mixed‐species animal groups (MSGs) are widely acknowledged to increase predator avoidance and foraging efficiency, among other benefits, and thereby increase participants' fitness. Diversity in MSG composition ranges from two to 70 species of very similar or completely different phenotypes. Yet consistency in organization is also observable in that one or a few species usually have disproportionate importance for MSG formation and/or maintenance. We propose a two‐dimensional framework for understanding this diversity and consistency, concentrating on the types of interactions possible between two individuals, usually of different species. One axis represents the similarity of benefit types …
Strategic Thinking under social influence: Scalability, stability and robustness of allocations
2016
This paper studies the strategic behavior of a large number of game designers and studies the scalability, stability and robustness of their allocations in a large number of homogeneous coalitional games with transferable utilities (TU). For each TU game, the characteristic function is a continuous-time stochastic process. In each game, a game designer allocates revenues based on the extra reward that a coalition has received up to the current time and the extra reward that the same coalition has received in the other games. The approach is based on the theory of mean-field games with heterogeneous groups in a multi-population regime.
Measuring Social Responsibility: A Multicriteria Approach
2016
In this chapter we present a portfolio selection model for Socially Responsible Investment. The model, following the spirit of Socially Responsible Investment, consists of two different steps. Firstly, a social screening is applied in order to obtain the feasible set of assets accomplishing the socially responsible investment policy of the assets’ manager. In this step, an indicator is obtained for the measurement of the social responsibility degree of an asset. Assets are then ranked using this indicator from the most socially responsible to the less socially responsible. In a second step, once the feasible set is obtained, composed of those socially responsible assets verifying the screen…
Sharing R&D investments in breakthrough technologies to control climate change
2017
This paper examines international cooperation on technological development as an alternative to international cooperation on GHG emission reductions. In order to analyze the scope of cooperation, a three-stage technology agreement formation game is solved. First, countries decide whether or not to sign up to the agreement. Then, in the second stage, the signatories (playing together) and the non-signatories (playing individually) select their investment in R&D. In this stage, it is assumed that the signatories not only coordinate their levels of R&D investment but also pool their R&D efforts to fully internalize the spillovers of their investment in innovation. Finally, in the third stage, …
Sustainable growth and environmental catastrophes
2017
Abstract In the standard AK growth model we introduce the threat of an ecological catastrophe and study the consequences for the economic variables in the long-run. We extend the basic framework by considering two environmental externalities: the first one is local and gives account of the marginal damage from emissions flow; the second one is aggregate, or global, and relates to the extreme damage which may happen if the accumulated stock of pollutants is on the threshold of a worldwide catastrophe. In this context dominated by market failures, we focus on the socially optimal solution and the search of conditions for sustainability. We identify the efficient balanced growth path, which ma…
Nonlinear trade-offs allow the cooperation game to evolve from Prisoner's Dilemma to Snowdrift.
2017
[EN] The existence of cooperation, or the production of public goods, is an evolutionary problem. Cooperation is not favoured because the Prisoner s Dilemma (PD) game drives cooperators to extinction. We have re-analysed this problem by using RNA viruses to motivate a model for the evolution of cooperation. Gene products are the public goods and group size is the number of virions co-infecting the same host cell. Our results show that if the trade-off between replication and production of gene products is linear, PD is observed. However, if the trade-off is nonlinear, the viruses evolve into separate lineages of ultra-defectors and ultra-cooperators as group size is increased. The nonlinear…
The Importance of Alliances in Firm Capital Structure Decisions: Evidence from Biotechnology Firms
2015
Building on finance research, we argue that the ex post hazards arising from alliance formation depend upon the firm's financial condition. Financial distress jeopardizes the continuity of an alliance and the value of the investments involved. Thus, firms should reduce leverage to signal continued commitment and to induce investments from alliance partners. Accordingly, we find that a firm's current alliance propensity predicts its subsequent capital structure decisions and that this relationship is most pronounced in the presence of other exchange hazards. Our paper contributes to alliance research and to the growing literature discussing the strategic consequences of capital structure. Co…