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. |
