nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2023‒05‒08
four papers chosen by
Matthew Baker
City University of New York

  1. Homophily and Transmission of Behavioral Traits in Social Networks By Palaash Bhargava; Daniel L. Chen; Matthias Sutter; Camille Terrier
  2. Cooperation, Fairness, and Rational Altruism in the Making of the Modern Living Standards. The Case of Maresme (1853-2022) By Jose Luis Martinez-Gonzalez
  3. Complexity and Time By Benjamin Enke; Thomas Graeber; Ryan Oprea
  4. Egoism and Altruism in Intergroup Conflict By Simon Varaine; Raùl Magni-Berton; Ismaël Benslimane; Paolo Crosetto

  1. By: Palaash Bhargava; Daniel L. Chen; Matthias Sutter; Camille Terrier
    Abstract: Social networks are a key factor of success in life, but they are also strongly segmented on gender, ethnicity, and other demographic characteristics (Jackson, 2010). We present novel evidence on an understudied source of homophily: behavioral traits. Behavioral traits are important determinants of life outcomes. While recent work has focused on how these traits are influenced by the family environment, or how they can be affected by childhood interventions, little is known about how these traits are related to social networks. Based on unique data collected using incentivized experiments on more than 2, 500 French high-school students, we find high levels of homophily across all ten behavioral traits that we study. Notably, the extent of homophily depends on similarities in demographic characteristics, in particular with respect to gender. Furthermore, the larger the number of behavioral traits that students share, the higher the overall homophily. Using network econometrics, we show that the observed homophily is not only an outcome of endogenous network formation, but is also a result of friends influencing each others’ behavioral traits. Importantly, the transmission of traits is larger when students share demographic characteristics, such as gender, have longer periods of friendship, or are friends with more popular individuals.
    Keywords: homophily, social networks, behavioural traits, peer effects, experiments
    JEL: D85 C91 D01 D90
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10351&r=evo
  2. By: Jose Luis Martinez-Gonzalez (Universitat de Barcelona – Universitat Autonoma de Barcelona, Barcelona, Spain)
    Abstract: Can attitudes and beliefs within each community, as well as their social capital, explain some of the differences in their development? Conducting a macro study in the Maresme region using data from the Contribution Territorial, which includes 5, 412 agricultural farms, 2, 537 owners, and 13 municipalities (1853-1864), we find levels of rational altruism approaching 50%, confirming recent evidence from experimental economics studies. A particularly interesting finding is the correlation between the most altruistic municipalities 160 years ago and those today with higher levels of human capital and per capita family income, as well as the influence of certain study variables on the prosocial behavior of local oligarchies. This result suggests that the attitudes, beliefs, values, and informal rural rules of the past are factors that complement the quality of national institutions today. Economic history not only helps to explain the origins and different trajectories of local economic development, but, more importantly, informs us that investing in regional policies that promote community spirit is a worthwhile endeavor for the future.
    Keywords: Altruism, peasant communities, human capital, informal institutions, development, social change, collective action
    JEL: B52 D03 D64 N33 O43
    Date: 2023–04
    URL: http://d.repec.org/n?u=RePEc:ahe:dtaehe:2304&r=evo
  3. By: Benjamin Enke; Thomas Graeber; Ryan Oprea
    Abstract: We provide experimental evidence that core intertemporal choice anomalies – including extreme short-run impatience, structural estimates of present bias, hyperbolicity and transitivity violations – are driven by complexity rather than time or risk preferences. First, all anomalies also arise in structurally similar atemporal decision problems involving valuation of iteratively discounted (but immediately paid) rewards. These computational errors are strongly predictive of intertemporal decisions. Second, intertemporal choice anomalies are highly correlated with indices of complexity responses including cognitive uncertainty and choice inconsistency. We show that model misspecification resulting from ignoring behavioral responses to complexity severely inflates structural estimates of present bias.
    Keywords: complexity, hyperbolic discounting, present bias, bounded rationality, noise, cognitive uncertainty
    JEL: C91 D91 G00
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10327&r=evo
  4. By: Simon Varaine (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Raùl Magni-Berton (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Ismaël Benslimane (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Paolo Crosetto (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: Studies have shown that intergroup conflict may result from two distinct human motives: the desire to obtain personal retributions from conflict ( egoism), and the desire to sacrifice for the benefit of the ingroup ( parochial altruism). Yet, the relative strength of these motives is open to debate. In this study, we compare behaviors in two Intergroup Prisoner's Dilemmas (IPD), which respectively capture altruistic and egoistic motives to generate conflict. Egoistic motives result in about 40% more conflict than altruistic motives. Yet, parochial altruism generates more conflict when three conditions are gathered: i) other ingroup members are parochial altruists, ii) the outgroup is aggressive and iii) the outgroup is rich. Implications regarding the diverging structural causes of terrorism and civil wars are discussed.
    Keywords: parochial altruism, egoism, intergroup prisoner dilemma, intergroup conflict, terrorism, civil war
    Date: 2023–04–03
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04063510&r=evo

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