Evolutionary model , Microeconomics

Assignment Help:

Evolutionary Model

The game theoretic approach is not completely satisfactory in so far as it implicitly assumes an under-socialised conception of human action. The possibility of cooperation is enhanced in groups whose members are tied together through the sharing of common ethos or social norms. A repeated game, however, falls in the category of evolutionary model, wherein the payoffs keep on changing from time to time.

There are two aspects of evolutionary model, namely the evolution of social norms and the evolution of participatory institutions. The latter is, however, dependent upon the former. Evolving social norms of behaviour - away from the pursuit of self-interest - is a long-drawn-out process. It depends upon the level of understanding about the outcomes of collective action, obligations required, responsibilities to be delegated, and restrictions on individual behaviour. However, they are more stable if and when evolved internally than when imposed externally.

In terms of the evolution of institutions, the role of a third group of agents called 'enforcers' or 'willing punishers' is envisaged, where the institution can be instrumental in stabilising equilibrium collective action solutions to the management of the commons. Whether these should be external agents such as the state or evolved within is a matter of practical experience in different situations. For instance, in several irrigation water use situations, invariably the majority decision regarding water sharing rules is more stable than that imposed by the governmental agencies.

The experience with community management in one situation can trigger similar institutions elsewhere. Therefore, the growth of participatory institutions itself can be evolutionary. One can trace out at least three broad thoughts through which institutions to manage CPRs have evolved. First, traditional societies in India have evolved systems to manage them through a process of conflicts, learning, and mechanisms to resolve them. The tribal’s of India residing in forest areas have always dealt with this issue in this evolutionary manner. Second, there is the process of customary laws recognised by the government, empowering the local communities to enjoy several CPRs. For instance, the Indian National Forest Policy document of 1988 clearly recognises the rights and concessions to tribal’s and locals regarding grazing lands, collection of non-timber forest products (NTFP), etc. The third type of CPR institutions emerges whenever the market mechanism fails to manage and maintain, or failure on the part of the state to 'police' public resources. One good example is the emergence of village protection committees under joint forest management (JFM) institutions.

 


Related Discussions:- Evolutionary model

Short period analysis - theory of production, SHORT PERIOD ANALYSIS: S...

SHORT PERIOD ANALYSIS: Short period in production refers to a time when some inputs remain fixed. A fixed input is one, whose quantity cannot be changed readily, whereas, a va

Copper, Around 2007, the world copper price was $2.00 per pound and 12 mill...

Around 2007, the world copper price was $2.00 per pound and 12 million metric tons per year was the quantity transacted. A) Assume copper’s demand elasticity is -.5 and supply elas

Employer’s estimates of future manpower requirements, Employer’s Estimates ...

Employer’s Estimates of Future Manpower Requirements One of the parameters of demand for employment in a firm or a factory or an establishment is the level of capital investme

Cost-of-living indexes, COST-OF-LIVING INDEXES   * The CPI is computed e...

COST-OF-LIVING INDEXES   * The CPI is computed each year as the ratio of cost of a typical group of consumer goods and services today in comparison to the cost during a base per

Explain term Markets , A market is nothing more or less than the locus of e...

A market is nothing more or less than the locus of exchange, it is not of necessity a place, but easily buyers and sellers coming together for transactions.   Transactions happen

Explain change in quantity demanded and a change in demand, Explain the dif...

Explain the difference between a change in quantity demanded and a change in demand. Change in quantity demanded" refers to movement with the demand curve.  For instance, if th

MIF, What is the purpose of the IMF and why might the IMF be called the “le...

What is the purpose of the IMF and why might the IMF be called the “lender of last resort”? Discuss how three of the tools they use for establishing economic stability in a country

Non-existence of objective probability distributions, Non-existence of Obje...

Non-existence of Objective Probability Distributions :   Let us see why expectations are volatile in nature? According to Keynes (1936, pp. 149): "Our knowledge of the fact

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd