in The Review of Economic Studies
April 2015; p ublished online December 2014 .
Journal Article. Subjects: Game Theory and Bargaining Theory; Capitalist Systems; Economic Sociology; Analysis of Collective Decision-making. 19052 words.
We study the evolution of a social norm of “cooperation” in a dynamic environment. Each agent lives for two periods and interacts with agents from the previous and next generations via a...