Cover of: When do Formal Rules and Informal Norms Converge?
Desiree A. Desierto, John V. C. Nye

When do Formal Rules and Informal Norms Converge?

Section: Articles
Volume 167 (2011) / Issue 4, pp. 613-629 (17)
Published 04.10.2018
DOI 10.1628/jite-2011-0005
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Summary
We propose evolutionary dynamics to show how rules converge into norms. Individuals play a game of upholding or rejecting a rule, and the more they uphold the rule, the more it becomes established as a norm. We find that when individuals are rational, the initial state determines whether the rule converges into a norm; when individuals are boundedly rational, convergence occurs only if upholding rules is a risk-dominant strategy. This suggests why big-bang reforms that affect only the initial state can fail, while gradualist approaches that can sustain the risk dominance of upholding rules may be more effective.