Analyzing Social Network Structures in the Iterated Prisoner's Dilemma with Choice and Refusal

The Iterated Prisoner's Dilemma with Choice and Refusal (IPD/CR) is an extension of the Iterated Prisoner's Dilemma with evolution that allows players to choose and to refuse their game partners. From individual behaviors, behavioral population structures emerge. In this report, we examine one particular IPD/CR environment and document the social network methods used to identify population behaviors found within this complex adaptive system. In contrast to the standard homogeneous population of nice cooperators, we have also found metastable populations of mixed strategies within this environment. In particular, the social networks of interesting populations and their evolution are examined.Comment: 37 pages, uuencoded gzip'd Postscript (1.1Mb when gunzip'd) also available via WWW at http://www.cs.wisc.edu/~smucker/ipd-cr/ipd-cr.htm

A Spatial Agent-Based Model of N-Person Prisoner's Dilemma Cooperation in a Socio-Geographic Community

The purpose of this paper is to present a spatial agent-based model of N-person prisoner's dilemma that is designed to simulate the collective communication and cooperation within a socio-geographic community. Based on a tight coupling of REPAST and a vector Geographic Information System, the model simulates the emergence of cooperation from the mobility behaviors and interaction strategies of citizen agents. To approximate human behavior, the agents are set as stochastic learning automata with Pavlovian personalities and attitudes. A review of the theory of the standard prisoner's dilemma, the iterated prisoner's dilemma, and the N-person prisoner's dilemma is given as well as an overview of the generic architecture of the agent-based model. The capabilities of the spatial N-person prisoner's dilemma component are demonstrated with several scenario simulation runs for varied initial cooperation percentages and mobility dynamics. Experimental results revealed that agent mobility and context preservation bring qualitatively different effects to the evolution of cooperative behavior in an analyzed spatial environment.Agent Based Modeling, Cooperation, Prisoners Dilemma, Spatial Interaction Model, Spatially Structured Social Dilemma, Geographic Information Systems

Learning and innovative elements of strategy adoption rules expand cooperative network topologies

Cooperation plays a key role in the evolution of complex systems. However, the level of cooperation extensively varies with the topology of agent networks in the widely used models of repeated games. Here we show that cooperation remains rather stable by applying the reinforcement learning strategy adoption rule, Q-learning on a variety of random, regular, small-word, scale-free and modular network models in repeated, multi-agent Prisoners Dilemma and Hawk-Dove games. Furthermore, we found that using the above model systems other long-term learning strategy adoption rules also promote cooperation, while introducing a low level of noise (as a model of innovation) to the strategy adoption rules makes the level of cooperation less dependent on the actual network topology. Our results demonstrate that long-term learning and random elements in the strategy adoption rules, when acting together, extend the range of network topologies enabling the development of cooperation at a wider range of costs and temptations. These results suggest that a balanced duo of learning and innovation may help to preserve cooperation during the re-organization of real-world networks, and may play a prominent role in the evolution of self-organizing, complex systems.Comment: 14 pages, 3 Figures + a Supplementary Material with 25 pages, 3 Tables, 12 Figures and 116 reference

Disputing through Agents: Cooperation and Conflict between Lawyers in Litigation

Do lawyers facilitate dispute resolution or do they instead exacerbate conflict and pose a barrier to the efficient resolution of disputes? A distinctive characteristic of our formal mechanisms of conflict resolution is that clients carry on their disputes through lawyers. Yet, at a time when the role of lawyers in dispute resolution has captured not only public but political attention, social scientists have remained largely uninterested in the influence of lawyers on the disputing process. This is not to say that academics have ignored the growth in civil litigation in the United States. Economists have developed an extensive literature that models one or another aspect of the litigation and settlement process. But the economic literature, with rare exceptions, shares a troublesome feature. Almost by convention, litigation is modeled as a two-person game between principals, thereby abstracting away the legal system's central institutional characteristic-litigation is carried out by agents

Experimental Economics

This is the first comprehensive treatment of laboratory experiments designed to evaluate economic propositions under carefully controlled conditions. While it acknowledges that laboratory experiments are no panacea, it argues cogently for their effectiveness in selected situations. Covering methodological and procedural issues as well as theory, Experimental Economics is not only a textbook but also a useful introduction to laboratory methods for professional economists. The emphasis is on organizing and evaluating existing results. The book can be used as an anchoring device for a course at either the graduate or advanced undergraduate level. Applications include financial market experiments, oligopoly price competition, auctions, bargaining, provision of public goods, experimental games, and decision making under uncertainty. The book also contains instructions for a variety of laboratory experiments.laboratory experiments, financial markets, price competition, auctions, bargaining, games, decision making, uncertainty

The Viability of Cooperation Based on Interpersonal Commitment

A prominent explanation of cooperation in repeated exchange is reciprocity (e.g. Axelrod, 1984). However, empirical studies indicate that exchange partners are often much less intent on keeping the books balanced than Axelrod suggested. In particular, there is evidence for commitment behavior, indicating that people tend to build long-term cooperative relationships characterised by largely unconditional cooperation, and are inclined to hold on to them even when this appears to contradict self-interest. Using an agent-based computational model, we examine whether in a competitive environment commitment can be a more successful strategy than reciprocity. We move beyond previous computational models by proposing a method that allows to systematically explore an infinite space of possible exchange strategies. We use this method to carry out two sets of simulation experiments designed to assess the viability of commitment against a large set of potential competitors. In the first experiment, we find that although unconditional cooperation makes strategies vulnerable to exploitation, a strategy of commitment benefits more from being more unconditionally cooperative. The second experiment shows that tolerance improves the performance of reciprocity strategies but does not make them more successful than commitment. To explicate the underlying mechanism, we also study the spontaneous formation of exchange network structures in the simulated populations. It turns out that commitment strategies benefit from efficient networking: they spontaneously create a structure of exchange relations that ensures efficient division of labor. The problem with stricter reciprocity strategies is that they tend to spread interaction requests randomly across the population, to keep relations in balance. During times of great scarcity of exchange partners this structure is inefficient because it generates overlapping personal networks so that often too many people try to interact with the same partner at the same time.Interpersonal Commitment, Fairness, Reciprocity, Agent-Based Simulation, Help Exchange, Evolution

A simple model of cognitive processing in repeated games

In repeated interactions between individuals, we do not expect that exactly the same situation will occur from one time to another. Contrary to what is common in models of repeated games in the literature, most real situations may differ a lot and they are seldom completely symmetric. The purpose of this paper is to discuss a simple model of cognitive processing in the context of a repeated interaction with varying payoffs. The interaction between players is modelled by a repeated game with random observable payoffs. Cooperation is not simply associated with a certain action but needs to be understood as a phenomenon of the behaviour in the repeated game. The players are thus faced with a more complex situation, compared to the Prisoner's Dilemma that has been widely used for investigating the conditions for cooperation in evolving populations. Still, there are robust cooperating strategies that usually evolve in a population of players. In the cooperative mode, these strategies select an action that allows for maximizing the sum of the payoff of the two players in each round, regardless of the own payoff. Two such players maximise the expected total long-term payoff. If the opponent deviates from this scheme, the strategy invokes a punishment action, which aims at lowering the opponent's score for the rest of the (possibly infinitely) repeated game. The introduction of mistakes to the game actually pushes evolution towards more cooperative strategies even though the game becomes more difficult.Comment: Accepted for publication in the conference proceedings of ECCS'0

A bibliography of research on behavioral decision processes to 1968

Bibliography of research of human behavioral decision making processes to Jan. 196

Behavioral economics as applied to firms: a primer

We discuss the literatures on behavioral economics, bounded rationality and experimental economics as they apply to firm behavior in markets. Topics discussed include the impact of imitative and satisficing behavior by firms, outcomes when managers care about their position relative to peers, the benefits of employing managers whose objective diverges from profit-maximization (including managers who are overconfident or base pricing decisions on sunk costs), the impact of social preferences on the ability to collude, and the incentive for profit-maximizing firms to mimic irrational behavior.Behavioral economics, bounded rationality, experimental economics, oligopoly, antitrust