We study the long-run emergence of behavioral patterns in dynamic complex networks. Individuals can display two kinds of behavior: G ("good" ) or B ("bad" ). We assume that the exposure of a G agent to bad behavior on the part of peers/neighbors triggers her own switch to B behavior, but only...

The paper discusses the important role of clustering in the evolution of social networks, as it affects not only the incentives of players to cooperate but also their ability to search for fresh opportunities. Depending on the volatility of the environment and the social convention in place, we...