The Open Method of Coordination (OMC) as an evolutionary learning process
Ania, Ana B. ; Wagener, Andreas
CESifo - Munich
2009
36 p.
EU policy ; open method of coordination ; social policy ; welfare economics
CESifo working paper
2601
Social policy
English
Bibliogr.
"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."
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