What makes the Kula go round?: A simulation model of the spontaneous emergence of a ceremonial exchange system

The Kula ring described by Bronislaw Malinowski is a system of the ceremonial exchange of gifts among a number of tribal societies inhabiting various island groups in the region east of Papua New Guinea. Two ceremonial gifts continually circulate in opposite directions: necklaces clockwise and armshells counterclockwise. After a brief description of the social system of Kula exchange, a game-theoretic interpretation of the ceremonial exchange as a signaling system for peaceful relationships among potentially hostile communities, with inbuilt checks against cheating, is given. A simulation model of the starting mechanism is presented to account for the emergence and stability of the observed pattern of circular exchange of the two ceremonial gifts. Distinguishing among different “historical” phases in the development leads to a decisive improvement of the model. The article closes with a discussion of the limits and future directions of research.