Defectors in Detail

Distinction between assigned defector count and actual defector count

The user is required to initialize the simulation by entering a value for the percentage of members who are assigned the role of honest defectors. An honest defector is a user who believes that the claim submitted to the group is invalid. On the basis of this belief they withhold payment of their monthly premium to the claimant and exit the community. Because the smart contracts create an inflexible requirement for the members to pay the claimant this increases the financial burden upon the remainder of the community. This enforced financial obligation to pay the full value of the claim effectively raises premiums for the remaining members when defectors leave the group.

For a user agent to perform the action of defecting depends upon both the primary and secondary roles. Users who are assigned a primary role of defector and a secondary role of independent always defect. Users who are assigned a primary role of defector and a secondary role of dependent defect if certain conditions imposed by the simulation are met. Not all assigned defectors meet the conditions imposed by the simulation to perform the action of defecting thus becoming actual defectors. The percentage of assigned defectors who become actual defectors increases as the number of members who are assigned the secondary role of independent increases. The percentage of assigned defectors who become actual defectors decreases as the number of members who are assigned the secondary role of dependent increases.