  Here we present an agent-based model where agents interact with other agents
by playing a hybrid of dictator and ultimatum games in a co-evolving social
network. The basic assumption about the behaviour of the agents in both games
is that they try to attain superior socioeconomic positions relative to other
agents. As the model parameters we have chosen the relative proportions of the
dictator and ultimatum game strategies being played between a pair of agents in
a single social transaction and a parameter depicting the living costs of the
agents. The motivation of the study is to examine how different types of social
interactions affect the formation of social structures and networks, when the
agents have a tendency to maximize their socioeconomic standing. We find that
such social networks of agents invariably undergo a community formation process
from simple chain-like structure to more complex networks as the living cost
parameter is increased. The point where this occurs, depends also on the
relative proportion of the dictator and ultimatum games being played. We find
that it is harder for complex social structures to form when the dictator game
strategy in social transactions of agents becomes more dominant over that of
the ultimatum game.
