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Title:The open method of coordination (OMC) as an evolutionary learning process PDF Logo
Authors:Ania, Ana B.
Wagener, Andreas
Issue Date:2009
Series/Report no.:CESifo working paper 2601
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 behaviour (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.
Subjects:Open Method of Coordination
Finite-population Evolutionarily Stable Strategy
imitation
mobility
redistribution
JEL:H77
H75
C73
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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