Games

33 pages, 3140 KiB

Open AccessArticle

by Peter Paul Vanderschraaf

Games 2025, 16(4), 36; https://doi.org/10.3390/g16040036 - 9 Jul 2025

I consider an underexplored possible explainer of the “surprising” results of Ultimatum Game experiments, namely, that Proposers and Recipients consider following only some of all the logically possible strategies of their Ultimatum Game. I present an evolutionary analysis of different games having the [...] Read more.

I consider an underexplored possible explainer of the “surprising” results of Ultimatum Game experiments, namely, that Proposers and Recipients consider following only some of all the logically possible strategies of their Ultimatum Game. I present an evolutionary analysis of different games having the same set of allowable Proposer offers and functions that determine Proposer and Recipient payoffs. For Unrestricted Ultimatum Games, where Recipients may choose from among any of the logically possible pure strategies, populations tend to evolve most often to Nash equilibria where Proposers make the lowest allowable offer. However, for Threshold Reduced Ultimatum Games, where Recipients must choose from among minimum acceptable offer strategies, and for Range Reduced Ultimatum Games, where Recipients must choose from among pure strategies that spurn offers that are “too high” as well as “too low”, populations tend to evolve most often to Nash equilibria where Proposers offer substantially more than the lowest possible offer, a result that is consistent with existing Ultimatum Game experimental results. Finally, I argue that, practically speaking, actual Proposers and Recipients will likely regard some reduction of the Unrestricted Ultimatum Game as their game because, for them, the strategies of this reduction are salient. Full article

(This article belongs to the Special Issue Evolution of Cooperation and Evolutionary Game Theory)

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17 pages, 329 KiB

Open AccessArticle

Pool Formation with Three Patent Owners

by Hao Liu, Xuewen Qian, Chen Qu and Jingyi Shen

Games 2025, 16(4), 35; https://doi.org/10.3390/g16040035 - 8 Jul 2025

Abstract

We analyze the endogenous formation of patent pools among three patent owners and the associated welfare effects. Under a condition of synergistic three-patent combination, either a unique symmetric equilibrium or infinitely many asymmetric equilibria can arise when patents are fragmented. By using the [...] Read more.

We analyze the endogenous formation of patent pools among three patent owners and the associated welfare effects. Under a condition of synergistic three-patent combination, either a unique symmetric equilibrium or infinitely many asymmetric equilibria can arise when patents are fragmented. By using the notion of equilibrium binding agreements, we show that (1) when there is a unique symmetric equilibrium under fragmented patents, the complete pool is both stable and welfare-maximizing; (2) fragmented patents are stable in the presence of infinitely many asymmetric equilibria; and (3) when considering only a single specific asymmetric equilibrium under fragmented patents, the complete pool is welfare-maximizing if it is stable, while fragmented patents can be both stable and welfare-maximizing under certain conditions. We also discuss an alternative version of synergism and an alternative bargaining protocol for patent pool formation. Full article

(This article belongs to the Section Cooperative Game Theory and Bargaining)

24 pages, 468 KiB

Open AccessArticle

Hierarchies and Promotions in Political Institutions: Accountability and Selection

by B. Pablo Montagnes, Stephane Wolton and Junyan Jiang

Games 2025, 16(4), 34; https://doi.org/10.3390/g16040034 - 4 Jul 2025

Abstract

Hierarchies are common in political settings. From judges to elected politicians, as well as from activists to bureaucrats, political agents compete for promotion to higher positions. This paper studies political tournaments and their impact on two aspects of political performance: accountability and selection. [...] Read more.

Hierarchies are common in political settings. From judges to elected politicians, as well as from activists to bureaucrats, political agents compete for promotion to higher positions. This paper studies political tournaments and their impact on two aspects of political performance: accountability and selection. While larger tournaments discourage effort, they improve selection. We also discuss the optimal design of tournaments as a function of the principal’s objectives and the features of the environment. We find that tournaments of size two (such as two-candidate elections) are generally suboptimal. Our analysis also highlights that increased desirability of promotion always increases effort but can reduce the optimal tournament size under certain conditions. We also present a range of other comparative statics. Full article

(This article belongs to the Special Issue Conflict and Communication: Applications of Game Theory to Political Economy)

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13 pages, 596 KiB

Open AccessArticle

Nonmarket Valuation by Contests Under Two American Rules: A Game-Theoretic Analysis

by Sung-Hoon Park and Jason F. Shogren

Games 2025, 16(4), 33; https://doi.org/10.3390/g16040033 - 30 Jun 2025

Abstract

Herein, we further examine how we can value nonmarket goods and services by considering the costs associated with environmental conflicts. Focusing on two American rules—the asymmetric reimbursement system and the contingent fee contract—we develop a strategic game-theoretic model in which a citizens group [...] Read more.

Herein, we further examine how we can value nonmarket goods and services by considering the costs associated with environmental conflicts. Focusing on two American rules—the asymmetric reimbursement system and the contingent fee contract—we develop a strategic game-theoretic model in which a citizens group engages a delegate through a contingent fee compensation contract, while a polluter engages a delegate through an hourly fee compensation contract. If the citizens group prevails, the polluter is obligated to contribute a portion of the contingent fee. Solving for the subgame perfect equilibrium, two results emerge. First, the 4x-rule can be maintained through the adjustment of the asymmetric reimbursement system. Second, the asymmetric reimbursement system can serve both as a supplementary method to measure nonmarket valuation and to reduce the rent dissipation resulting from environmental conflicts under general circumstances. Full article

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16 pages, 336 KiB

Open AccessArticle

The Impact of Market Mood on a Dynamic Model of Insider Trading

by Ruohan Wang, Jing Wang and Zhi Yang

Games 2025, 16(4), 32; https://doi.org/10.3390/g16040032 - 20 Jun 2025

Abstract

According to the research, the proportions of various types of investors may or may not change in response to different trading strategies or complex trading environments. This paper investigates a single-period trading model for multiple risk-averse and risk-neutral insider traders. The distinction is [...] Read more.

According to the research, the proportions of various types of investors may or may not change in response to different trading strategies or complex trading environments. This paper investigates a single-period trading model for multiple risk-averse and risk-neutral insider traders. The distinction is that we consider the impact of the number of risk-averse traders and different types of insider traders on market liquidity. The model contains four types of trading entities: risk-neutral and risk-adverse insider traders, risk-neutral market makers, and noise traders. Firstly, we prove the existence and uniqueness of the model’s linear Nash equilibrium; secondly, we compare the model with multiple risk-neutral and risk-adverse insider traders in the market to the model with only risk-neutral insider traders and risk-adverse insider traders. It is shown that the market liquidity parameter

λ

decreases with the increase in the number of risk-averse persons

N_{2}

in a particular range and increases with the increase in the number of risk-averse persons

N_{2}

in another range. Markets with risk-neutral and risk-averse insider traders have consistently lower liquidity than markets with only risk-neutral insider traders. Comparing this to markets with only risk-adverse insider traders reveals that the number of risk-adverse traders heavily influences market liquidity. Full article

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20 pages, 336 KiB

Open AccessArticle

Spatial Competition Across Borders: The Role of Patients’ Mobility and Institutional Settings

by Laura Levaggi and Rosella Levaggi

Games 2025, 16(3), 31; https://doi.org/10.3390/g16030031 - 5 Jun 2025

Abstract

Health care systems rely on geographical boundaries that secure financial stability and adequate planning. Quality differences across regions often arise for efficiency reasons, causing patient flows if mobility is free. In this paper, a theoretical spatial competition model is developed to study the [...] Read more.

Health care systems rely on geographical boundaries that secure financial stability and adequate planning. Quality differences across regions often arise for efficiency reasons, causing patient flows if mobility is free. In this paper, a theoretical spatial competition model is developed to study the role of patients’ mobility on quality setting and to draw policy implications on its use as an instrument to reduce disparities, in a setting where regions differ in efficiency, costs, and market structure. From the analysis, it emerges that the institutional setting matters and a trade-off may appear between equity (in terms of quality difference across patients) and welfare (finding an allocation that maximizes social benefits). In a centralized setting, it is optimal to regulate mobility and increase the quality gap, while allowing free mobility calls for a refined quality setting, in which, depending on a balance between costs and benefits, the quality gap may be either increased or decreased. In decentralization the gap is generally lower, compared to centralization: the different consideration of benefits from local quality provision results in higher quality levels where the market structure is vertically integrated. Full article

(This article belongs to the Section Applied Game Theory)

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15 pages, 289 KiB

Open AccessArticle

Equilibrium Coalition Structures in Three-Player Symmetric Games

by Jingyi Shen and Chen Qu

Games 2025, 16(3), 30; https://doi.org/10.3390/g16030030 - 5 Jun 2025

Cited by 1

Abstract

In symmetric games with externalities across coalitions, we investigate how three players form coalitions using two solutions:

n^{*}

, which is a focal prediction of coalition structure in a class of noncooperative coalitional bargaining games, and equilibrium binding agreements, which represent the [...] Read more.

In symmetric games with externalities across coalitions, we investigate how three players form coalitions using two solutions:

n^{*}

, which is a focal prediction of coalition structure in a class of noncooperative coalitional bargaining games, and equilibrium binding agreements, which represent the cooperative blocking approach. We find that the coarsest equilibrium coalition structure (based on the latter notion) is never finer than

n^{*}

, and we provide a sufficient and necessary condition for these two solutions to generate the same coalition structure (i.e., the two solutions coincide if and only if the first coalition to form in

n^{*}

is not a two-player coalition or a particular condition about average coalitional worths is satisfied). In symmetric games with more than three players, we demonstrate through a series of examples that any relationship between these two solutions is possible. We also discuss symmetric games with positive externalities or equal division in which these two solutions coincide. Full article

13 pages, 836 KiB

Open AccessFeature PaperArticle

The Raiffa–Kalai–Smorodinsky Solution as a Mechanism for Dividing the Uncertain Future Profit of a Partnership

by Yigal Gerchak and Eugene Khmelnitsky

Games 2025, 16(3), 29; https://doi.org/10.3390/g16030029 - 4 Jun 2025

Abstract

Establishing a partnership necessitates agreeing on how to divide future profits or losses. We consider parties who wish to contract on the division of uncertain future profits. We propose to divide profits according to the Raiffa–Kalai–Smorodinsky (K-S) solution, which is the intersection point [...] Read more.

Establishing a partnership necessitates agreeing on how to divide future profits or losses. We consider parties who wish to contract on the division of uncertain future profits. We propose to divide profits according to the Raiffa–Kalai–Smorodinsky (K-S) solution, which is the intersection point of the feasible region’s boundary and the line connecting the disagreement and ideal points. It is the only function which satisfies invariance to linear transformations, symmetry, strong Pareto optimality, and monotonicity. We formulate the general problem of designing a contract which divides uncertain future profit between the partners and determines shares of each partner. We first focus on linear and, later, non-linear contracts between two partners, providing analytical and numerical solutions for various special cases in terms of the utility functions of the partners, their beliefs, and the disagreement point. We then generalize the analysis to any number of partners. We also consider a contract which is partially based on the parties’ financial contribution to the partnership, which have a positive impact on profit. Finally, we address asymmetric K-S solutions. K-S solutions are seen to be a useful predictor of the outcome of negotiations, similar to Nash’s bargaining solution. Full article

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39 pages, 3987 KiB

Open AccessArticle

The Impact of Gifts and Shared Experiences on an Investor-Manager Relationship

by Maximilian Olaf Hoyer and Frans van Winden

Games 2025, 16(3), 28; https://doi.org/10.3390/g16030028 - 4 Jun 2025

Abstract

This paper experimentally investigates the relationship between an investor and a project manager. Project managers choose from a pool of projects, the success probabilities of which are uncertain. Investors can change projects, but also have to change project managers if they want to [...] Read more.

This paper experimentally investigates the relationship between an investor and a project manager. Project managers choose from a pool of projects, the success probabilities of which are uncertain. Investors can change projects, but also have to change project managers if they want to do so. An additional joint project or a voluntary money transfer precedes their interaction. We hypothesize that investors favor projects of managers with whom they share positive experiences at that stage, even though these experiences do not provide any information about the subsequent project’s success probability. Interaction through a voluntary transfer plays a clear and significant role in the investors’ decision-making via bonding, whereas the influence of merely sharing a positive or negative experience proves more complex. Full article

(This article belongs to the Section Behavioral and Experimental Game Theory)

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12 pages, 218 KiB

Open AccessArticle

Match Stability with a Costly and Flexible Number of Positions

by James Gilmore and David Porter

Games 2025, 16(3), 27; https://doi.org/10.3390/g16030027 - 21 May 2025

Abstract

One of the main goals of two-sided matching mechanisms is to pair two groups of agents in a stable manner. Stability means that no pair of agents has an incentive to deviate from their assigned match. The outcome of such a match can [...] Read more.

One of the main goals of two-sided matching mechanisms is to pair two groups of agents in a stable manner. Stability means that no pair of agents has an incentive to deviate from their assigned match. The outcome of such a match can have significant consequences for the participants involved. Most existing research in this field assumes that the quotas of organizations are fixed and externally determined, which may not always be realistic. We introduce the concept of slot stability, which considers the possibility that organizations may want to adjust their quotas after the match process. To address this issue, we propose an algorithm that generates both stable and slot-stable matches by using flexible, endogenous quotas. Full article

37 pages, 498 KiB

Open AccessArticle

A General Model of Bertrand–Edgeworth Duopoly

by Blake A. Allison and Jason J. Lepore

Games 2025, 16(3), 26; https://doi.org/10.3390/g16030026 - 19 May 2025

Abstract

This paper studies a class of two-player all-pay contests with externalities that encompass a general version of duopoly price competition. This all-pay contest formulation puts little restriction on production technologies, demand, and demand rationing. There are two types of possible equilibria: In the [...] Read more.

This paper studies a class of two-player all-pay contests with externalities that encompass a general version of duopoly price competition. This all-pay contest formulation puts little restriction on production technologies, demand, and demand rationing. There are two types of possible equilibria: In the first type of equilibrium, the lower bound to pricing is the same for each firm, and the probability of any pricing tie above this price is zero. Each firm’s equilibrium expected profit is their monopoly profit at the lower bound price. In the second type of equilibrium, one firm prices at the lower bound of the other firm’s average cost and other firm prices according to a non-degenerate mixed strategy. This type of equilibrium can only occur if production technologies are sufficiently different across firms. We derive necessary and sufficient conditions for the existence of pure strategy equilibrium and use these conditions to demonstrate the fragility of deterministic outcomes in pricing games. Full article

36 pages, 447 KiB

Open AccessFeature PaperArticle

Procedural Information as a “Game Changer” in School Choice

by Yoan Hermstrüwer

Games 2025, 16(3), 25; https://doi.org/10.3390/g16030025 - 12 May 2025

Abstract

This article explores the impact of procedural information on the behavior of students under two school admission procedures commonly used in the US, the EU, and other jurisdictions: the Gale–Shapley mechanism and the Boston mechanism. In a lab experiment, I compare the impact [...] Read more.

This article explores the impact of procedural information on the behavior of students under two school admission procedures commonly used in the US, the EU, and other jurisdictions: the Gale–Shapley mechanism and the Boston mechanism. In a lab experiment, I compare the impact of information about the mechanism, information about individually optimal application strategies, and information about both. I find that strategic and full information increases truth-telling and stability under the Gale–Shapley mechanism. Under the Boston mechanism, however, the adoption of equilibrium strategies remains unaffected. Contrary to the prevailing assumptions in matching theory, the Boston mechanism improves perceived fairness. These results underscore the importance of procedural transparency and suggest that eliminating justified envy may not be sufficient to foster fairness and mitigate litigation risks. Full article

(This article belongs to the Section Behavioral and Experimental Game Theory)

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21 pages, 901 KiB

Open AccessFeature PaperArticle

Mobility Comparisons: Theoretical Definitions and People’s Perceptions

by Michele Bernasconi, Giulio Cinquanta, Valentino Dardanoni and Vincenzo Prete

Games 2025, 16(3), 24; https://doi.org/10.3390/g16030024 - 8 May 2025

Abstract

Comparing mobility is an important but controversial issue. In this paper, we argue that in a specific and relevant case, there exists a univocal and non-controversial definition of greater (exchange) mobility that allows for unambiguous comparisons. We conducted a questionnaire experiment to investigate [...] Read more.

Comparing mobility is an important but controversial issue. In this paper, we argue that in a specific and relevant case, there exists a univocal and non-controversial definition of greater (exchange) mobility that allows for unambiguous comparisons. We conducted a questionnaire experiment to investigate whether people’s perceptions of social mobility align with this definition, and we found that people’s choices are broadly in line with the theoretical predictions. Full article

(This article belongs to the Section Behavioral and Experimental Game Theory)

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7 pages, 202 KiB

Open AccessArticle

The Role of Reputation in Sequel Production

by Khac Minh Duc Do and Dmitriy Knyazev

Games 2025, 16(3), 23; https://doi.org/10.3390/g16030023 - 8 May 2025

Abstract

This paper develops a simple model of sequel production for experience goods, showing how reputation shapes a producer’s incentives. Producers differ in productivity, which determines how much effort they invest. A sequel is made only if the previous installment exceeds a quality threshold, [...] Read more.

This paper develops a simple model of sequel production for experience goods, showing how reputation shapes a producer’s incentives. Producers differ in productivity, which determines how much effort they invest. A sequel is made only if the previous installment exceeds a quality threshold, capturing the idea that consumers base future consumption on past success. Although high-productivity producers create higher-quality originals and sequels, the conditioning on successful originals still makes sequels, on average, worse than their predecessors. This aligns with evidence of sequel underperformance in media markets. Full article

(This article belongs to the Special Issue Applications of Game Theory to Industrial Organization)

21 pages, 4424 KiB

Open AccessFeature PaperArticle

New Categories of Conditional Contribution Strategies in the Public Goods Game

by Klaudia Schäffer, Adrienn Král and Ádám Kun

Games 2025, 16(3), 22; https://doi.org/10.3390/g16030022 - 6 May 2025

Abstract

Human cooperation is ubiquitous and instinctive. We are among the most cooperative species on Earth. Still, research mostly focuses on why we cooperate, instead of understanding why some of us do not do so. The public goods game can be used to map [...] Read more.

Human cooperation is ubiquitous and instinctive. We are among the most cooperative species on Earth. Still, research mostly focuses on why we cooperate, instead of understanding why some of us do not do so. The public goods game can be used to map human cooperation as well as to study free riding. We acquired data through an online, unincentivized questionnaire which prompted respondents to choose how much of an initial endowment to contribute to a common pool. The respondents contributed, on average, 54% of their initial endowment to the common pool. The usual categorization scheme of the elicited conditional contribution pattern discerns unconditional free riders who do not contribute irrespective of the contributions of others and calls everyone a conditional cooperator who correlates their contribution with that of the others. However, someone consistently offering less than the others should not be called a cooperator. Consequently, based on the conditional contribution patterns among our respondents, we suggest a recategorization of contribution patterns into the following categories: unconditional cooperator (1.5%), unconditional free rider (10.6%), perfect conditional cooperator (42.6%), hump-shaped contributor (0.7%), V-shaped contributor (0.4%), conditional cooperator (16.6%), conditional free rider (13.6%), conditional contributor (6.4%), negative conditional contributor (0%), and others (7.6%). We only call someone a cooperator if the respondent at least matches others’ contribution, and call everyone consistently offering less a free rider. Furthermore, we found no difference between the contributions of women and men. No correlation of contribution with age, educational attainment, and size of the residential settlement was found. Students’ contributions were not different from non-students’ contributions. We found a significant correlation of the contribution to the common pool with hypercompetitive orientation (negative correlation) and the self-assessed willingness to take risks in general (positive correlation). Full article

(This article belongs to the Section Behavioral and Experimental Game Theory)

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46 pages, 527 KiB

Open AccessArticle

Strategic Complementarities in a Model of Commercial Media Bias

by Anna Kerkhof and Johannes Münster

Games 2025, 16(3), 21; https://doi.org/10.3390/g16030021 - 23 Apr 2025

Abstract

Media content is an important privately supplied public good. While it has been shown that contributions to a public good crowd out other contributions in many cases, the issue has not been thoroughly studied for media markets yet. We show that in a [...] Read more.

Media content is an important privately supplied public good. While it has been shown that contributions to a public good crowd out other contributions in many cases, the issue has not been thoroughly studied for media markets yet. We show that in a standard model of commercial media bias, qualities of media content are strategic complements, whereby investments into quality can crowd in further investments and engage competitors in a race to the top. Therefore, financially strong public service media can mitigate commercial media bias: the content of commercial media can be more in line with the preferences of the audience and less advertiser-friendly in a dual (mixed public and commercial) media system than in a purely commercial media market. Full article

(This article belongs to the Special Issue Mass Media Industries: The Economic Games)

28 pages, 832 KiB

Open AccessFeature PaperArticle

Two-Tier Marketplace with Multi-Resource Bidding and Strategic Pricing for Multi-QoS Services

by Samira Habli, Rachid El-Azouzi, Essaid Sabir, Mandar Datar, Halima Elbiaze and Mohammed Sadik

Games 2025, 16(2), 20; https://doi.org/10.3390/g16020020 - 21 Apr 2025

Abstract

Fog computing introduces a new dimension to the network edge by pooling diverse resources (e.g., processing power, memory, and bandwidth). However, allocating resources from heterogeneous fog nodes often faces limited capacity. To overcome these limitations, integrating fog nodes with cloud resources is crucial, [...] Read more.

Fog computing introduces a new dimension to the network edge by pooling diverse resources (e.g., processing power, memory, and bandwidth). However, allocating resources from heterogeneous fog nodes often faces limited capacity. To overcome these limitations, integrating fog nodes with cloud resources is crucial, ensuring that Service Providers (SPs) have adequate resources to deliver their services efficiently. In this paper, we propose a game-theoretic model to describe the competition among non-cooperative SPs as they bid for resources from both fog and cloud environments, managed by an Infrastructure Provider (InP), to offer paid services to their end-users. In our game model, each SP bids for the resources it requires, determining its willingness to pay based on its specific service demands and quality requirements. Resource allocation prioritizes the fog environment, which offers local access with lower latency but limited capacity. When fog resources are insufficient, the remaining demand is fulfilled by cloud resources, which provide virtually unlimited capacity. However, this approach has a weakness in that some SPs may struggle to fully utilize the resources allocated in the Nash equilibrium-balanced cloud solution. Specifically, under a nondiscriminatory pricing scheme, the Nash equilibrium may enable certain SPs to acquire more resources, granting them a significant advantage in utilizing fog resources. This leads to unfairness among SPs competing for fog resources. To address this issue, we propose a price differentiation mechanism among SPs to ensure a fair allocation of resources at the Nash equilibrium in the fog environment. We establish the existence and uniqueness of the Nash equilibrium and analyze its key properties. The effectiveness of the proposed model is validated through simulations using Amazon EC2 instances, where we investigate the impact of various parameters on market equilibrium. The results show that SPs may experience profit reductions as they invest to attract end-users and enhance their quality of service QoS. Furthermore, unequal access to resources can lead to an imbalance in competition, negatively affecting the fairness of resource distribution. The results demonstrate that the proposed model is coherent and that it offers valuable information on the allocation of resources, pricing strategies, and QoS management in cloud- and fog-based environments. Full article

(This article belongs to the Section Non-Cooperative Game Theory)

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28 pages, 768 KiB

Open AccessArticle

Procedurally Fair Co-Determination with Endogeneous Value Uncertainty: An Experiment

by Werner Güth, Ludivine Martin, Tibor Neugebauer and Sotiria Xanalatou

Games 2025, 16(2), 19; https://doi.org/10.3390/g16020019 - 21 Apr 2025

Abstract

We present an experimental test of a procedurally fair co-determination mechanism where group members reduce their value uncertainty before submitting bids for a joint project. The results suggest a relatively efficient mechanism, with unprofitable projects being largely rejected and profitable ones accepted. Repeated [...] Read more.

We present an experimental test of a procedurally fair co-determination mechanism where group members reduce their value uncertainty before submitting bids for a joint project. The results suggest a relatively efficient mechanism, with unprofitable projects being largely rejected and profitable ones accepted. Repeated interactions tended to enhance the efficiency, while uncertain information reduced it. The subjects invested surprisingly little search effort to reduce the uncertainty about the costs and benefits, and appeared to trade off search costs against higher bids. Full article

(This article belongs to the Section Behavioral and Experimental Game Theory)

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16 pages, 5600 KiB

Open AccessArticle

Cultural Dissemination on Evolving Networks: A Modified Axelrod Model Based on a Rewiring Process

by Yuri Perez, Fabio Henrique Pereira and Pedro Henrique Triguis Schimit

Games 2025, 16(2), 18; https://doi.org/10.3390/g16020018 - 17 Apr 2025

Abstract

In this paper, we investigate the classical Axelrod model of cultural dissemination under an adaptive network framework. Unlike the original model, we place agents on a complex network, where they cut connections with any agent that does not share at least one cultural [...] Read more.

In this paper, we investigate the classical Axelrod model of cultural dissemination under an adaptive network framework. Unlike the original model, we place agents on a complex network, where they cut connections with any agent that does not share at least one cultural trait. This rewiring process alters the network topology, and key parameters—such as the number of traits, the neighborhood search range, and the degree-based preferential attachment exponent—also influence the distribution of cultural traits. Unlike conventional Axelrod models, our approach introduces a dynamic network structure where the rewiring mechanism allows agents to actively modify their social connections based on cultural similarity. This adaptation leads to network fragmentation or consolidation depending on the interaction among model parameters, offering a framework to study cultural homogeneity and diversity. The results show that, while long-range reconnections can promote more homogeneous clusters in certain conditions, variations in the local search radius and preferential attachment can lead to rich and sometimes counterintuitive dynamics. Extensive simulations demonstrate that this adaptive mechanism can either increase or decrease cultural diversity, depending on the interplay of network structure and cultural dissemination parameters. These findings have practical implications for understanding opinion dynamics and cultural polarization in social networks, particularly in digital environments where rewiring mechanisms are analogous to recommendation systems or user-driven connection adjustments. Full article

(This article belongs to the Section Learning and Evolution in Games)

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