Publication detail

Cooperative Behavior and Economic Growth

Author(s): PhDr. Jaromír Baxa Ph.D.,
Type: Article in collection
Year: 2009
Number: 0
ISSN / ISBN: 978-80-213-1963-9
Published in: Mathematical Methods in Economics 2009
Publishing place: Prague
Keywords: cooperation, iterated prisoner's dilemma, economic growth, institutional change, agent-based modeling
JEL codes: D70, K42, O12, Z13
Suggested Citation: Baxa, Jaromir (2009): Cooperative Behavior and Economic Growth. In: Mathematical Methods in Economics 2009, Cech University of Life Sciences, Prague
Grants: 402/07/0890 GA CR (2007-2009): Network Approaches to Economic Modeling IES Research Framework Institutional task (2005-2011) Integration of the Czech economy into European union and its development Trust and Cooperation in Economics: An Inquiry into Formal and Empirical Applications
Abstract: We investigate the importance of cooperative behavior for economic growth in simulated economies.
Along with the other literature, the cooperative behavior and the ability to enforce cooperation are the
key factors for long-term sustainable economic growth in our simulations. Interestingly, the effect of
enforcement and punishment of piracy was not always positive: Introducing such mechanism caused
elimination of the most successful agents without the positive effects on cooperation and productive
economic activity. Hence, the income was lower for low enforcement rate than for the economies
without any mechanism supporting cooperation. Similar effects occurred in the simulations of
institutional change. In case of a discontinuous change, a radical enforcement mechanism was
implemented in one point of time and it caused a sharp fall of wealth. Nevertheless, after some time
the positive effects of cooperation dominated and economic growth emerged.




Patria Finance