Community boycotts can sustain cooperative trade as equilibrium without fixed trading partners.

Evidence

For 6 near enough to one - specifically if 6 2 Max[p/(l + p), (a - 1)/(1 + @)I (2) - the Adjusted Tit-for-Tat strategies are a subgame perfect equilibrium in the community trading game for any matching rule M. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 57

Categorization

  • XREF: Connects directly to the reader’s Milgrom/North/Weingast private-judge analysis and Schelling credible-commitments framing. — connects to: Community ostracism alone may be insufficient to enforce trade judgments — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 37; Repeated trade with a high discount factor enables cooperative equilibria. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 47; Community reputational enforcement works even without repeated bilateral interaction between traders. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 65 (+10 more)

Broader Connections