The Open Method of Coordination (OMC) as an Evolutionary Learning Process

Ania, Ana B. und Wagener, Andreas (23. November 2009): The Open Method of Coordination (OMC) as an Evolutionary Learning Process. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2009-18

Abstract

We interpret the Open Method of Coordination (OMC), recently adopted by the EU as a mode of governance in the area of social policy and other fields, as an imitative learning dynamics of the type considered in evolutionary game theory. The best-practise feature and the iterative design of the OMC correspond to the behavioral rule "imitate the best." In a redistribution game with utilitarian governments and mobile welfare beneficiaries, we compare the outcomes of imitative behavior (long-run evolutionary equilibrium), decentralized best-response behavior (Nash equilibrium), and coordinated policies. The main result is that the OMC allows policy coordination on a strict subset of the set of Nash equilibria, favoring in particular coordination on intermediate values of the policy instrument.

• Dokumententyp: Paper
• Publikationsform: Preprint
• Keywords: Open Method of Coordination, Finite-population Evolutionarily Stable Strategy, Imitation, Mobility, Redistribution.
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Munich Discussion Papers in Economics ; Volkswirtschaft > Munich Discussion Papers in Economics > Finanzwissenschaft ; Volkswirtschaft > Munich Discussion Papers in Economics > Spieltheorie
• Themengebiete: 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie ; 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: H77, H75, C73, I38
• Sprache: Englisch