Conflicts of interest : articles on common benefits and private profits

This dissertation is concerned with three different topics, each of which is treated in a separate, self-contained article. Their underlying connection is contained in the quote above, as they apply the methods of social science – mi- croeconomic theory and micro-econometrics – to questions related to “grown”, or in one case “growing” institutions. In Chapter 2, I address troubles that patent systems are facing to a large and increasing degree, such as the deval- uation of patents due to badly specified claims and property rights and the ensuing central role that courts play in the patent system in the context of a game-theoretic model. While the patent system can be considered a venerable institution, in Chapter 3 I turn my attention to a young and budding one: Online social networks. Making use of a unique data set, in collaboration with Steffen Reik I try to explore whether the existing economic theory on social networks can assist us in understanding the forces that shape user behavior within. One of the central findings is the importance of social norms in this en- vironment. In Chapter 4, which was developed working together with Leonardo Felli and Konrad Stahl, the aim is to show how a specific social norm, trust, shapes the interaction between upstream suppliers and downstream manufac- turers in the automotive industry. I present a game-theoretic model and test its predictions using data from an extensive industry survey we conducted

Opinion Polarization by Learning from Social Feedback

We explore a new mechanism to explain polarization phenomena in opinion dynamics in which agents evaluate alternative views on the basis of the social feedback obtained on expressing them. High support of the favored opinion in the social environment, is treated as a positive feedback which reinforces the value associated to this opinion. In connected networks of sufficiently high modularity, different groups of agents can form strong convictions of competing opinions. Linking the social feedback process to standard equilibrium concepts we analytically characterize sufficient conditions for the stability of bi-polarization. While previous models have emphasized the polarization effects of deliberative argument-based communication, our model highlights an affective experience-based route to polarization, without assumptions about negative influence or bounded confidence.Comment: Presented at the Social Simulation Conference (Dublin 2017

The Return on Social Bonds: Social Hierarchy and International Conflict

This article takes a game-theoretic and latent variable approach to modeling the effect of international social hierarchies on conflict among states. I start with the premise that international states are social actors and are nested within informal social networks of friendly and conflictual relationships. Rather than lateral relationships among equals, networks among states tend to have a vertical or hierarchical structure. Although international hierarchical relationships may arise as a result of material power asymmetries, this article focuses on non-material asymmetries that stem from political legitimacy or policy innovation – a subject that has received less attention in scholarly research. I argue that, within these hierarchies, states adopt one of two roles – a dominant or a subordinate. Each resulting (dyadic) dominant–subordinate relationship is a social contract, in which the subordinate concedes some autonomy in exchange for the dominant’s protection. This social hierarchy affects the relationships among subordinates, as well as between a dominant and subordinates. The model predicts that a state’s degree of subordination reduces its probability of conflict initiation against other subordinates. Moreover, the decision to initiate conflict is influenced by the expectation that the dominant will intervene, which itself is affected by the target’s relative level of subordination to the dominant vis-à-vis the challenger. These predictions are supported by empirical analyses of the US hierarchy (1950–2000)

Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy management mechanism for the smart grid that enables each prosumer of the network to participate in energy trading with one another and the grid. This poses a significant challenge in terms of modeling the decision-making process of each participant with conflicting interest and motivating prosumers to participate in energy trading and to cooperate, if necessary, for achieving different energy management goals. Therefore, such decision-making process needs to be built on solid mathematical and signal processing tools that can ensure an efficient operation of the smart grid. This paper provides an overview of the use of game theoretic approaches for P2P energy trading as a feasible and effective means of energy management. As such, we discuss various games and auction theoretic approaches by following a systematic classification to provide information on the importance of game theory for smart energy research. Then, the paper focuses on the P2P energy trading describing its key features and giving an introduction to an existing P2P testbed. Further, the paper zooms into the detail of some specific game and auction theoretic models that have recently been used in P2P energy trading and discusses some important finding of these schemes.Comment: 38 pages, single column, double spac

Game-theoretic Resource Allocation Methods for Device-to-Device (D2D) Communication

Device-to-device (D2D) communication underlaying cellular networks allows mobile devices such as smartphones and tablets to use the licensed spectrum allocated to cellular services for direct peer-to-peer transmission. D2D communication can use either one-hop transmission (i.e., in D2D direct communication) or multi-hop cluster-based transmission (i.e., in D2D local area networks). The D2D devices can compete or cooperate with each other to reuse the radio resources in D2D networks. Therefore, resource allocation and access for D2D communication can be treated as games. The theories behind these games provide a variety of mathematical tools to effectively model and analyze the individual or group behaviors of D2D users. In addition, game models can provide distributed solutions to the resource allocation problems for D2D communication. The aim of this article is to demonstrate the applications of game-theoretic models to study the radio resource allocation issues in D2D communication. The article also outlines several key open research directions.Comment: Accepted. IEEE Wireless Comms Mag. 201