Real-Time Monitoring in a Public Goods Game*
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Evolutionary Stable Strategy Application of Nash Equilibrium in Biology
GENERAL ARTICLE Evolutionary Stable Strategy Application of Nash Equilibrium in Biology Jayanti Ray-Mukherjee and Shomen Mukherjee Every behaviourally responsive animal (including us) make decisions. These can be simple behavioural decisions such as where to feed, what to feed, how long to feed, decisions related to finding, choosing and competing for mates, or simply maintaining ones territory. All these are conflict situations between competing individuals, hence can be best understood Jayanti Ray-Mukherjee is using a game theory approach. Using some examples of clas- a faculty member in the School of Liberal Studies sical games, we show how evolutionary game theory can help at Azim Premji University, understand behavioural decisions of animals. Game theory Bengaluru. Jayanti is an (along with its cousin, optimality theory) continues to provide experimental ecologist who a strong conceptual and theoretical framework to ecologists studies mechanisms of species coexistence among for understanding the mechanisms by which species coexist. plants. Her research interests also inlcude plant Most of you, at some point, might have seen two cats fighting. It invasion ecology and is often accompanied with the cats facing each other with puffed habitat restoration. up fur, arched back, ears back, tail twitching, with snarls, growls, Shomen Mukherjee is a and howls aimed at each other. But, if you notice closely, they faculty member in the often try to avoid physical contact, and spend most of their time School of Liberal Studies in the above-mentioned behavioural displays. Biologists refer to at Azim Premji University, this as a ‘limited war’ or conventional (ritualistic) strategy (not Bengaluru. He uses field experiments to study causing serious injury), as opposed to dangerous (escalated) animal behaviour and strategy (Figure 1) [1]. -
The Logic of Costly Punishment Reversed: Expropriation of Free-Riders and Outsiders∗,†
The logic of costly punishment reversed: expropriation of free-riders and outsiders∗ ,† David Hugh-Jones Carlo Perroni University of East Anglia University of Warwick and CAGE January 5, 2017 Abstract Current literature views the punishment of free-riders as an under-supplied pub- lic good, carried out by individuals at a cost to themselves. It need not be so: often, free-riders’ property can be forcibly appropriated by a coordinated group. This power makes punishment profitable, but it can also be abused. It is easier to contain abuses, and focus group punishment on free-riders, in societies where coordinated expropriation is harder. Our theory explains why public goods are un- dersupplied in heterogenous communities: because groups target minorities instead of free-riders. In our laboratory experiment, outcomes were more efficient when coordination was more difficult, while outgroup members were targeted more than ingroup members, and reacted differently to punishment. KEY WORDS: Cooperation, costly punishment, group coercion, heterogeneity JEL CLASSIFICATION: H1, H4, N4, D02 ∗We are grateful to CAGE and NIBS grant ES/K002201/1 for financial support. We would like to thank Mark Harrison, Francesco Guala, Diego Gambetta, David Skarbek, participants at conferences and presentations including EPCS, IMEBESS, SAET and ESA, and two anonymous reviewers for their comments. †Comments and correspondence should be addressed to David Hugh-Jones, School of Economics, University of East Anglia, [email protected] 1 Introduction Deterring free-riding is a central element of social order. Most students of collective action believe that punishing free-riders is costly to the punisher, but benefits the community as a whole. -
Game Theory]: Basics of Game Theory
Artificial Intelligence Methods for Social Good M2-1 [Game Theory]: Basics of Game Theory 08-537 (9-unit) and 08-737 (12-unit) Instructor: Fei Fang [email protected] Wean Hall 4126 1 5/8/2018 Quiz 1: Recap: Optimization Problem Given coordinates of 푛 residential areas in a city (assuming 2-D plane), denoted as 푥1, … , 푥푛, the government wants to find a location that minimizes the sum of (Euclidean) distances to all residential areas to build a hospital. The optimization problem can be written as A: min |푥푖 − 푥| 푥 푖 B: min 푥푖 − 푥 푥 푖 2 2 C: min 푥푖 − 푥 푥 푖 D: none of above 2 Fei Fang 5/8/2018 From Games to Game Theory The study of mathematical models of conflict and cooperation between intelligent decision makers Used in economics, political science etc 3/72 Fei Fang 5/8/2018 Outline Basic Concepts in Games Basic Solution Concepts Compute Nash Equilibrium Compute Strong Stackelberg Equilibrium 4 Fei Fang 5/8/2018 Learning Objectives Understand the concept of Game, Player, Action, Strategy, Payoff, Expected utility, Best response Dominant Strategy, Maxmin Strategy, Minmax Strategy Nash Equilibrium Stackelberg Equilibrium, Strong Stackelberg Equilibrium Describe Minimax Theory Formulate the following problem as an optimization problem Find NE in zero-sum games (LP) Find SSE in two-player general-sum games (multiple LP and MILP) Know how to find the method/algorithm/solver/package you can use for solving the games Compute NE/SSE by hand or by calling a solver for small games 5 Fei Fang 5/8/2018 Let’s Play! Classical Games -
Recency, Records and Recaps: Learning and Non-Equilibrium Behavior in a Simple Decision Problem*
Recency, Records and Recaps: Learning and Non-equilibrium Behavior in a Simple Decision Problem* DREW FUDENBERG, Harvard University ALEXANDER PEYSAKHOVICH, Facebook Nash equilibrium takes optimization as a primitive, but suboptimal behavior can persist in simple stochastic decision problems. This has motivated the development of other equilibrium concepts such as cursed equilibrium and behavioral equilibrium. We experimentally study a simple adverse selection (or “lemons”) problem and find that learning models that heavily discount past information (i.e. display recency bias) explain patterns of behavior better than Nash, cursed or behavioral equilibrium. Providing counterfactual information or a record of past outcomes does little to aid convergence to optimal strategies, but providing sample averages (“recaps”) gets individuals most of the way to optimality. Thus recency effects are not solely due to limited memory but stem from some other form of cognitive constraints. Our results show the importance of going beyond static optimization and incorporating features of human learning into economic models. Categories & Subject Descriptors: J.4 [Social and Behavioral Sciences] Economics Author Keywords & Phrases: Learning, behavioral economics, recency, equilibrium concepts 1. INTRODUCTION Understanding when repeat experience can lead individuals to optimal behavior is crucial for the success of game theory and behavioral economics. Equilibrium analysis assumes all individuals choose optimal strategies while much research in behavioral economics -
Public Goods Agreements with Other-Regarding Preferences
NBER WORKING PAPER SERIES PUBLIC GOODS AGREEMENTS WITH OTHER-REGARDING PREFERENCES Charles D. Kolstad Working Paper 17017 http://www.nber.org/papers/w17017 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 May 2011 Department of Economics and Bren School, University of California, Santa Barbara; Resources for the Future; and NBER. Comments from Werner Güth, Kaj Thomsson and Philipp Wichardt and discussions with Gary Charness and Michael Finus have been appreciated. Outstanding research assistance from Trevor O’Grady and Adam Wright is gratefully acknowledged. Funding from the University of California Center for Energy and Environmental Economics (UCE3) is also acknowledged and appreciated. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2011 by Charles D. Kolstad. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Public Goods Agreements with Other-Regarding Preferences Charles D. Kolstad NBER Working Paper No. 17017 May 2011, Revised June 2012 JEL No. D03,H4,H41,Q5 ABSTRACT Why cooperation occurs when noncooperation appears to be individually rational has been an issue in economics for at least a half century. In the 1960’s and 1970’s the context was cooperation in the prisoner’s dilemma game; in the 1980’s concern shifted to voluntary provision of public goods; in the 1990’s, the literature on coalition formation for public goods provision emerged, in the context of coalitions to provide transboundary pollution abatement. -
Nudging Cooperation in Public Goods Provision
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Barron, Kai; Nurminen, Tuomas Article — Accepted Manuscript (Postprint) Nudging cooperation in public goods provision Journal of Behavioral and Experimental Economics Provided in Cooperation with: WZB Berlin Social Science Center Suggested Citation: Barron, Kai; Nurminen, Tuomas (2020) : Nudging cooperation in public goods provision, Journal of Behavioral and Experimental Economics, ISSN 2214-8043, Elsevier, Amsterdam, Vol. 88, Iss. (Article No.:) 101542, http://dx.doi.org/10.1016/j.socec.2020.101542 This Version is available at: http://hdl.handle.net/10419/216878 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von -
The Impact of Beliefs on Effort in Telecommuting Teams
The impact of beliefs on effort in telecommuting teams E. Glenn Dutcher, Krista Jabs Saral Working Papers in Economics and Statistics 2012-22 University of Innsbruck http://eeecon.uibk.ac.at/ University of Innsbruck Working Papers in Economics and Statistics The series is jointly edited and published by - Department of Economics - Department of Public Finance - Department of Statistics Contact Address: University of Innsbruck Department of Public Finance Universitaetsstrasse 15 A-6020 Innsbruck Austria Tel: + 43 512 507 7171 Fax: + 43 512 507 2970 E-mail: [email protected] The most recent version of all working papers can be downloaded at http://eeecon.uibk.ac.at/wopec/ For a list of recent papers see the backpages of this paper. The Impact of Beliefs on E¤ort in Telecommuting Teams E. Glenn Dutchery Krista Jabs Saralz February 2014 Abstract The use of telecommuting policies remains controversial for many employers because of the perceived opportunity for shirking outside of the traditional workplace; a problem that is potentially exacerbated if employees work in teams. Using a controlled experiment, where individuals work in teams with varying numbers of telecommuters, we test how telecommut- ing a¤ects the e¤ort choice of workers. We …nd that di¤erences in productivity within the team do not result from shirking by telecommuters; rather, changes in e¤ort result from an individual’s belief about the productivity of their teammates. In line with stereotypes, a high proportion of both telecommuting and non-telecommuting participants believed their telecommuting partners were less productive. Consequently, lower expectations of partner productivity resulted in lower e¤ort when individuals were partnered with telecommuters. -
Collusion Constrained Equilibrium
Theoretical Economics 13 (2018), 307–340 1555-7561/20180307 Collusion constrained equilibrium Rohan Dutta Department of Economics, McGill University David K. Levine Department of Economics, European University Institute and Department of Economics, Washington University in Saint Louis Salvatore Modica Department of Economics, Università di Palermo We study collusion within groups in noncooperative games. The primitives are the preferences of the players, their assignment to nonoverlapping groups, and the goals of the groups. Our notion of collusion is that a group coordinates the play of its members among different incentive compatible plans to best achieve its goals. Unfortunately, equilibria that meet this requirement need not exist. We instead introduce the weaker notion of collusion constrained equilibrium. This al- lows groups to put positive probability on alternatives that are suboptimal for the group in certain razor’s edge cases where the set of incentive compatible plans changes discontinuously. These collusion constrained equilibria exist and are a subset of the correlated equilibria of the underlying game. We examine four per- turbations of the underlying game. In each case,we show that equilibria in which groups choose the best alternative exist and that limits of these equilibria lead to collusion constrained equilibria. We also show that for a sufficiently broad class of perturbations, every collusion constrained equilibrium arises as such a limit. We give an application to a voter participation game that shows how collusion constraints may be socially costly. Keywords. Collusion, organization, group. JEL classification. C72, D70. 1. Introduction As the literature on collective action (for example, Olson 1965) emphasizes, groups often behave collusively while the preferences of individual group members limit the possi- Rohan Dutta: [email protected] David K. -
Competition and Cooperation on Predation: Bifurcation Theory of Mutualism Author: Srijana Ghimire Xiang-Sheng Wang University of Louisiana at Lafayette
Competition and Cooperation on Predation: Bifurcation Theory Of Mutualism Author: Srijana Ghimire Xiang-Sheng Wang University of Louisiana at Lafayette Introduction Existence and Stability of E1,E+ and E− Existence and property of Hopf bifurcation 3. R > 1 and R > 3R − 2R2. In this case, Q = Q , 1 2 1 1 c 1 points We investigate two predator-prey models which take into con- xc = 1/R1, E1 always exists, E1 is locally asymptotically H E + H E E sideration the cooperation between two different predators and stable if and only if Q < Q1, E− does not exist, and E+ exits + + R H within one predator species, respectively. Local and global dy- if and only if Q > Q1. 2.0 E E E - namics are studied for the model systems. By a detailed bi- - - Q Q Q Q Q Q furcation analysis, we investigate the dependence of predation + + h + h1 h2 1.5 no Hopf bifurcation Existence conditions of positive equilibria. (a) case 1(a) (b) case 1(b) (c) case 1(c) dynamics on mutualism (cooperative predation). H H E R + 2 E E two supercritical + + 1.0 R2 > 1 Q H E+ E - E Q1 - E y y - First Predator-Prey Model with Competition 1 E 1 E 1 1 y 1 E 1 0.5 one supercritical NA Q Q Q Q Q Q Q Q Q and Co-operation 1 + 1 + 1 h + h1 1 h2 R2 < one Q R1 NA if Q < Q1 (d) case 2(a) (e) case 2(b) (f) case 2(c) E± subcritical E+ if Q ≥ Q1 E+ d 0 H 0 2 4 6 8 E x = 1 − x − p xy − p xz − 2qxyz, (1) + 1 2 Q+ E Q1 + 0 Figure: Existence and property of Hopf bifurcation points in the (d, R) y = p xy + qxyz − d y, (2) 2 1 1 R2 = 3R1 − 2R NA 1 H parameter space. -
Game-Theoretic Analysis of Cooperation Incentive Strategies in Mobile Ad Hoc Networks
1 Game-Theoretic Analysis of Cooperation Incentive Strategies in Mobile Ad Hoc Networks Ze Li and Haiying Shen Dept. of Electrical and Computer Engineering Clemson University, Clemson, SC 29631 fzel,[email protected] F Abstract—In mobile ad hoc networks (MANETs), tasks are conducted nodes will decrease the throughput of cooperative nodes and lead based on the cooperation of nodes in the networks. However, since the to complete network disconnection [6]. Therefore, encouraging nodes are usually constrained by limited computation resources, selfish nodes to be cooperative and detecting selfish nodes in packet nodes may refuse to be cooperative. Reputation systems and price-based transmission is critical to ensuring the proper functionalities of systems are two main solutions to the node non-cooperation problem. A reputation system evaluates node behaviors by reputation values and uses MANETs. a reputation threshold to distinguish trustworthy nodes and untrustworthy Recently, numerous approaches have been proposed to deal nodes. A price-based system uses virtual cash to control the transactions with the node non-cooperation problem in wireless networks. of a packet forwarding service. Although these two kinds of systems have They generally can be classified into two main categories: reputa- been widely used, very little research has been devoted to investigating the tion systems and price-based systems. The basic goal of reputation effectiveness of the node cooperation incentives provided by the systems. systems [7–18] is to evaluate each node’s trustworthiness based In this paper, we use game theory to analyze the cooperation incentives provided by these two systems and by a system with no cooperation on its behaviors and detect misbehaving nodes according to rep- incentive strategy. -
Noisy Directional Learning and the Logit Equilibrium*
CSE: AR SJOE 011 Scand. J. of Economics 106(*), *–*, 2004 DOI: 10.1111/j.1467-9442.2004.000376.x Noisy Directional Learning and the Logit Equilibrium* Simon P. Anderson University of Virginia, Charlottesville, VA 22903-3328, USA [email protected] Jacob K. Goeree California Institute of Technology, Pasadena, CA 91125, USA [email protected] Charles A. Holt University of Virginia, Charlottesville, VA 22903-3328, USA [email protected] PROOF Abstract We specify a dynamic model in which agents adjust their decisions toward higher payoffs, subject to normal error. This process generates a probability distribution of players’ decisions that evolves over time according to the Fokker–Planck equation. The dynamic process is stable for all potential games, a class of payoff structures that includes several widely studied games. In equilibrium, the distributions that determine expected payoffs correspond to the distributions that arise from the logit function applied to those expected payoffs. This ‘‘logit equilibrium’’ forms a stochastic generalization of the Nash equilibrium and provides a possible explanation of anomalous laboratory data. ECTED Keywords: Bounded rationality; noisy directional learning; Fokker–Planck equation; potential games; logit equilibrium JEL classification: C62; C73 I. Introduction Small errors and shocks may have offsetting effects in some economic con- texts, in which case there is not much to be gained from an explicit analysis of stochasticNCORR elements. In other contexts, a small amount of randomness can * We gratefully acknowledge financial support from the National Science Foundation (SBR- 9818683U and SBR-0094800), the Alfred P. Sloan Foundation and the Dutch National Science Foundation (NWO-VICI 453.03.606). -
A Value-Based Framework for Understanding Cooperation
CDPXXX10.1177/0963721420906200Pärnamets et al.Value-Based Framework for Cooperation 906200research-article2020 ASSOCIATION FOR PSYCHOLOGICAL SCIENCE Current Directions in Psychological Science A Value-Based Framework for 2020, Vol. 29(3) 227 –234 © The Author(s) 2020 Article reuse guidelines: Understanding Cooperation sagepub.com/journals-permissions DOI:https://doi.org/10.1177/0963721420906200 10.1177/0963721420906200 www.psychologicalscience.org/CDPS Philip Pärnamets1,2, Anastasia Shuster3, Diego A. Reinero2 , and Jay J. Van Bavel2 1Division of Psychology, Department of Clinical Neuroscience, Karolinska Institutet; 2Department of Psychology, New York University; and 3Department of Psychiatry, Icahn School of Medicine at Mt. Sinai Abstract Understanding the roots of human cooperation, a social phenomenon embedded in pressing issues including climate change and social conflict, requires an interdisciplinary perspective. We propose a unifying value-based framework for understanding cooperation that integrates neuroeconomic models of decision-making with psychological variables involved in cooperation. We propose that the ventromedial prefrontal cortex serves as a neural integration hub for value computation during cooperative decisions, receiving inputs from various neurocognitive processes such as attention, memory, and learning. Next, we describe findings from social and personality psychology highlighting factors that shape the value of cooperation, including research on contexts and norms, personal and social identity, and intergroup relations. Our approach advances theoretical debates about cooperation by highlighting how previous findings are accommodated within a general value-based framework and offers novel predictions. Keywords cooperation, preferences, norms, social neuroscience, neuroeconomics Cooperation is a central feature of group living and map for psychologists and help promote cumulative involves any action that benefits other people while science.