American Institute of Mathematical Sciences

Advanced
July  2019, 6(3): 211-219. doi: 10.3934/jdg.2019015

Social networks and global transactions

Yuki Kumagai ,

School of Management, Yasuda Women's University, 6-13-1 Yasuhigashi, Hiroshima, 731-0153, Japan

* Corresponding author: Yuki Kumagai

Received  March 2019 Published  July 2019

In the repeated prisoner's dilemma with private monitoring, Bhaskar and Obara [2] construct a belief-based mixed trigger strategy which may be modified to approximate full cooperation when a public randomisation device is available. By modifying their assumption about trading relationships, this paper generalises the model and demonstrates that without introducing public randomisations, long-run cooperation may be approximately sustained by mixed trigger strategies with delayed communication. By applying our model, we investigate when efficient trade is attainable in a nonmarket trading system of social networks by looking into a role of communication in long-run community enforcement of efficient trade.

Keywords: Repeated trade, moral hazard, delayed communication, social networks, efficiency of trade.
Mathematics Subject Classification: Primary: 91A25, 91B60; Secondary: 91B44.
Citation: Yuki Kumagai. Social networks and global transactions. Journal of Dynamics & Games, 2019, 6 (3) : 211-219. doi: 10.3934/jdg.2019015
References:
[1]

D. Abreu, P. Milgrom and D. Pearce, Information and timing in repeated partnerships, Econometrica, 59 (1991), 1713-1733.  doi: 10.2307/2938286.  Google Scholar

[2]

V. Bhaskar and I. Obara, Belief-based equilibria in the repeated prisoners' dilemma with private monitoring, Journal of Economic Theory, 102 (2002), 40-69.  doi: 10.1006/jeth.2001.2878.  Google Scholar

[3]

G. Ellison, Cooperation in the prisoner's dilemma with anonymous random matching, Review of Economic Studies, 61 (1994), 567-588.  doi: 10.2307/2297904.  Google Scholar

[4]

D. Fudenberg, D. Levine and E. Maskin, The folk theorem with imperfect public information, Econometrica, 62 (1994), 997-1039.  doi: 10.2307/2951505.  Google Scholar

[5] A. Greif, Institutions and the Path to the Modern Economy: Lessons from Medieval trade, Cambridge University Press, Cambridge and New York, 2006.  doi: 10.1017/CBO9780511791307.  Google Scholar
[6]

M. Kandori, Social norms and community enforcement, Review of Economic Studies, 59 (1992), 63-80.   Google Scholar

[7]

M. Kandori, Repeated games played by overlapping generations of players, Review of Economic Studies, 59 (1992), 81-92.  doi: 10.2307/2297926.  Google Scholar

[8]

R. Radner, R. Myerson and E. Maskin, An example of a repeated partnership game with discounting and with uniformly inefficient equilibria, Review of Economic Studies, 53 (1986), 59-69.  doi: 10.2307/2297591.  Google Scholar

[9]

J. Rauch and V. Trindade, Ethnic Chinese networks in international trade, Review of Economics and Statistics, 84 (2002), 116-130.   Google Scholar

show all references

References:
[1]

D. Abreu, P. Milgrom and D. Pearce, Information and timing in repeated partnerships, Econometrica, 59 (1991), 1713-1733.  doi: 10.2307/2938286.  Google Scholar

[2]

V. Bhaskar and I. Obara, Belief-based equilibria in the repeated prisoners' dilemma with private monitoring, Journal of Economic Theory, 102 (2002), 40-69.  doi: 10.1006/jeth.2001.2878.  Google Scholar

[3]

G. Ellison, Cooperation in the prisoner's dilemma with anonymous random matching, Review of Economic Studies, 61 (1994), 567-588.  doi: 10.2307/2297904.  Google Scholar

[4]

D. Fudenberg, D. Levine and E. Maskin, The folk theorem with imperfect public information, Econometrica, 62 (1994), 997-1039.  doi: 10.2307/2951505.  Google Scholar

[5] A. Greif, Institutions and the Path to the Modern Economy: Lessons from Medieval trade, Cambridge University Press, Cambridge and New York, 2006.  doi: 10.1017/CBO9780511791307.  Google Scholar
[6]

M. Kandori, Social norms and community enforcement, Review of Economic Studies, 59 (1992), 63-80.   Google Scholar

[7]

M. Kandori, Repeated games played by overlapping generations of players, Review of Economic Studies, 59 (1992), 81-92.  doi: 10.2307/2297926.  Google Scholar

[8]

R. Radner, R. Myerson and E. Maskin, An example of a repeated partnership game with discounting and with uniformly inefficient equilibria, Review of Economic Studies, 53 (1986), 59-69.  doi: 10.2307/2297591.  Google Scholar

[9]

J. Rauch and V. Trindade, Ethnic Chinese networks in international trade, Review of Economics and Statistics, 84 (2002), 116-130.   Google Scholar

Table 1.  The stage-game payoffs
$ e $ $ s $
$ e $ $ 1, 1 $ $ -l, 1+g $
$ s $ $ 1+g, - l $ $ 0 $, $ 0 $
Table Options

Download as excel

$ e $ $ s $
$ e $ $ 1, 1 $ $ -l, 1+g $
$ s $ $ 1+g, - l $ $ 0 $, $ 0 $
[1]

Filipe Martins, Alberto A. Pinto, Jorge Passamani Zubelli. Nash and social welfare impact in an international trade model. Journal of Dynamics & Games, 2017, 4 (2) : 149-173. doi: 10.3934/jdg.2017009
[2]

Maximiliano Fernandez, Javier Galeano, Cesar Hidalgo. Bipartite networks provide new insights on international trade markets. Networks & Heterogeneous Media, 2012, 7 (3) : 399-413. doi: 10.3934/nhm.2012.7.399
[3]

Rafael Diaz, Laura Gomez. Indirect influences in international trade. Networks & Heterogeneous Media, 2015, 10 (1) : 149-165. doi: 10.3934/nhm.2015.10.149
[4]

Xiulan Wang, Yanfei Lan, Wansheng Tang. An uncertain wage contract model for risk-averse worker under bilateral moral hazard. Journal of Industrial & Management Optimization, 2017, 13 (4) : 1815-1840. doi: 10.3934/jimo.2017020
[5]

Pau Erola, Albert Díaz-Guilera, Sergio Gómez, Alex Arenas. Modeling international crisis synchronization in the world trade web. Networks & Heterogeneous Media, 2012, 7 (3) : 385-397. doi: 10.3934/nhm.2012.7.385
[6]

Werner Creixell, Juan Carlos Losada, Tomás Arredondo, Patricio Olivares, Rosa María Benito. Serendipity in social networks. Networks & Heterogeneous Media, 2012, 7 (3) : 363-371. doi: 10.3934/nhm.2012.7.363
[7]

Yanqin Bai, Yudan Wei, Qian Li. An optimal trade-off model for portfolio selection with sensitivity of parameters. Journal of Industrial & Management Optimization, 2017, 13 (2) : 947-965. doi: 10.3934/jimo.2016055
[8]

Lihui Zhang, Xin Zou, Jianxun Qi. A trade-off between time and cost in scheduling repetitive construction projects. Journal of Industrial & Management Optimization, 2015, 11 (4) : 1423-1434. doi: 10.3934/jimo.2015.11.1423
[9]

Luis C. Corchon. Trade and growth: A simple model with NOT-SO-Simple implications. Journal of Dynamics & Games, 2017, 4 (2) : 175-190. doi: 10.3934/jdg.2017010
[10]

Honglin Yang, Heping Dai, Hong Wan, Lingling Chu. Optimal credit periods under two-level trade credit. Journal of Industrial & Management Optimization, 2020, 16 (4) : 1753-1767. doi: 10.3934/jimo.2019027
[11]

Hirotada Honda. On a model of target detection in molecular communication networks. Networks & Heterogeneous Media, 2019, 14 (4) : 633-657. doi: 10.3934/nhm.2019025
[12]

Joseph D. Skufca, Erik M. Bollt. Communication and Synchronization in Disconnected Networks with Dynamic Topology: Moving Neighborhood Networks. Mathematical Biosciences & Engineering, 2004, 1 (2) : 347-359. doi: 10.3934/mbe.2004.1.347
[13]

Ying Sue Huang. Resynchronization of delayed neural networks. Discrete & Continuous Dynamical Systems - A, 2001, 7 (2) : 397-401. doi: 10.3934/dcds.2001.7.397
[14]

Sharon M. Cameron, Ariel Cintrón-Arias. Prisoner's Dilemma on real social networks: Revisited. Mathematical Biosciences & Engineering, 2013, 10 (5&6) : 1381-1398. doi: 10.3934/mbe.2013.10.1381
[15]

Robin Cohen, Alan Tsang, Krishna Vaidyanathan, Haotian Zhang. Analyzing opinion dynamics in online social networks. Big Data & Information Analytics, 2016, 1 (4) : 279-298. doi: 10.3934/bdia.2016011
[16]

Jui-Jung Liao, Wei-Chun Lee, Kuo-Nan Huang, Yung-Fu Huang. Optimal ordering policy for a two-warehouse inventory model use of two-level trade credit. Journal of Industrial & Management Optimization, 2017, 13 (4) : 1661-1683. doi: 10.3934/jimo.2017012
[17]

Yu-Chung Tsao. Ordering policy for non-instantaneously deteriorating products under price adjustment and trade credits. Journal of Industrial & Management Optimization, 2017, 13 (1) : 329-347. doi: 10.3934/jimo.2016020
[18]

Qiang Lin, Ying Peng, Ying Hu. Supplier financing service decisions for a capital-constrained supply chain: Trade credit vs. combined credit financing. Journal of Industrial & Management Optimization, 2020, 16 (4) : 1731-1752. doi: 10.3934/jimo.2019026
[19]

Pin-Shou Ting. The EPQ model with deteriorating items under two levels of trade credit in a supply chain system. Journal of Industrial & Management Optimization, 2015, 11 (2) : 479-492. doi: 10.3934/jimo.2015.11.479
[20]

Qingguo Bai, Jianteng Xu, Fanwen Meng, Niu Yu. Impact of cap-and-trade regulation on coordinating perishable products supply chain with cost learning. Journal of Industrial & Management Optimization, 2020  doi: 10.3934/jimo.2020126

 Impact Factor: 

Tools

Metrics

  • PDF downloads (40)
  • HTML views (259)
  • Cited by (0)

Other articles
by authors

[Back to Top]

Copyright © 2020 American Institute of Mathematical Sciences