Abstract
We propose a model of social relationships in which relational goods are the results of individual joint efforts and past attitudes toward socialising. We show the effect of individual different inclinations toward social relationships on the dynamic properties of the system either assuming homogeneous or heterogeneous individuals. Particularly, we show the role assumed by the environment and past experience of individuals on the dynamic outcome. We use a triangular finite-different system to investigate these issues. We analyse the conditions for the convergence of the system to a low-socialising trap and we propose a few policy corrections to get out of it.
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Notes
A dynamic triangular system with n variables is represented by \(\left\{\begin{array}{l} x_{1t+1}=f_{1}(x_{1t}) \\ x_{2t+1}=f_{2}(x_{1t},x_{2t}) \\ \vdots \\ x_{it+1}=f_{i}(x_{1t},\ldots ,x_{it}) \\ \vdots \\ x_{nt+1}=f_{n}(x_{1t},\ldots ,x_{tn}) \end{array}\right.\)
We are assuming that individuals are non-satiated in the consumption of socialising. Empirical evidence supports this assumption (see, e.g., Bruni and Stanca 2007).
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Randon, E., Bruni, L. & Naimzada, A. Dynamics of relational goods. Int. Rev. Econ. 55, 113–125 (2008). https://doi.org/10.1007/s12232-008-0043-8
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DOI: https://doi.org/10.1007/s12232-008-0043-8