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A game theoretical study shows that envy coupled with competition divides society into an upper and lower class
FRANKFURT. Can class differences come about endogenously, i.e. independent of birth and education? Professor Claudius Gros from the Institute for Theoretical Physics at 51ÁÔÆæ pursued this issue in a game theoretical study. He was able to show that the basic human need to compare oneself with others may be the root cause of the formation of social classes.
It's generally recognized that differences
in background and education cement class differences. It is less clear when and
under what circumstances individual psychological forces can drive an initially
homogenous social group apart and ultimately divide it. Claudius Gros,
professor for theoretical physics at 51ÁÔÆæ, investigated this
question in a mathematical precise way using game theory methods. “In the
study, societies of agents – acting individuals – are simulated within game
theory, which means that everybody optimises her/his success according to
predetermined rules. I wanted to find out whether social differences can emerge
on their own if no one starts off with advantages – that is, when all actors
have the same skills and opportunity," the physicist explains.
The study is based on the assumption that
there are things in every society that are coveted but limited – such as jobs,
social contacts and positions of power. An inequality is created if the top
position is already occupied and someone must therefore accept the second-best
job – but not, however, a societal division. With the help of mathematical
calculations Gros was able to demonstrate that envy, which arises from the need
to compare oneself with others, alters individual behaviour and consequently
the agents' strategies in characteristic ways. As a result of this changed
behaviour, two strictly separate social classes arise.
Game theory provides the mathematical
tools necessary for the modelling of decision situations with several
participants, as in Gros' study. In general, constellations in which the
decision strategies of the individual actors mutually influence each other are
particularly revealing. The success of the individual depends then not only on
his or her own actions, but on others' actions as well, which is typical of
both economic and social contexts. Game theory is consequently firmly anchored
in the economy. The stability condition of game theory, the “Nash equilibrium",
is a concept developed by John Forbes Nash in his dissertation in 1950, using
the example of poker players. It states that in equilibrium no player has
anything to gain by changing their strategy if the other players do not change
theirs either. An individual only tries out new behaviour patterns if there is
a potential gain. Since this causal chain also applies to evolutionary
processes, the evolutionary and behavioural sciences regularly fall back on
game theoretical models, for example when researching animal behaviours such as
the migratory flight routes of birds, or their competition for nesting sites.
Even in an envy-induced class society
there is no incentive for an individual to change his or her strategy,
according to Gros. It is therefore Nash stable. In the divided envy society
there is a marked difference in income between the upper and lower class which
is the same for all members of each social class. Typical for the members of
the lower class is, according to Gros, that they spend their time on a series
of different activities, something game theory terms a “mixed strategy".
Members of the upper class, however, concentrate on a single task, i.e., they
pursue a “pure strategy". It is also striking that the upper class can choose
between various options while the lower class only has access to a single mixed
strategy. “The upper class is therefore individualistic, while agents in the
lower class are lost in the crowd, so to speak," the physicist sums up.
In Claudius Gros' model, whether an agent
lands in the upper or lower class is ultimately a matter of coincidence. It is
decided by the dynamics of competition, and not by origin. For his study, Gros
developed a new game theoretical model, the “shopping trouble model" and worked
out a precise analytical solution. From
it, he derives that an envy-induced class society possesses characteristics
that are deemed universal in the theory of complex systems. The result is that
the class society is beyond political control to a certain degree. Political
decision-makers lose a portion of their options for control when society
spontaneously splits into social classes. In addition, Gros' model demonstrates
that envy has a stronger effect when the competition for limited resources is
stronger. “This game theoretical insight could be of central significance. Even
an 'ideal society' cannot be stably maintained in the long term – which
ultimately makes the striving for a communistic society seem unrealistic," the
scientist remarks.
Publication: Claudius Gros, „Self induced class stratification in competitive societies of agents: Nash stability in the presence of envy“, Royal Society Open Science , Vol 7, 200411 (2020).
Link:
Further information: Professor Claudius Gros, Institute for
Theoretical Physics, Riedberg Campus, E-Mail gros07@itp.uni-frankfurt.de