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The Open Method of Coordination (OMC) as an evolutionary learning process

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Ania, Ana B. ; Wagener, Andreas

CESifo, Munich

CESifo - Munich

2009

36 p.

EU policy ; open method of coordination ; social policy ; welfare economics

CESifo working paper

2601

Social policy

http://www.cesifo-group.de/

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."

Digital



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