Documento de Trabajo CIIE, No. 2008-07

Cultural Thresholds, Collective Action and Institutional Reform
Gonzalo Castañeda

Abstract
This paper presents a theory that analyzes the propagation of a cultural variant that induces the cohesiveness of civil society and, thus, the society’s capacity to solve collective action problems. The model combines tools of evolutionary game theory with a solution concept for strategic behavior where rationally bounded decisions are made sequential. With this framework, it is possible to explain the co-evolution of contemporary cultural values with economic/political variables, as well as the importance of the historical legacy in establishing the country’s development path. Likewise, it is argued that economic theorizing requires cultural arguments for a better understanding of institutional inertias, lock-ins, and poverty traps.