Assortative Mixing Equilibria in Social Network Games

It is known that individuals in social networks tend to exhibit homophily (a.k.a. assortative mixing) in their social ties, which implies that they prefer bonding with others of their own kind. But what are the reasons for this phenomenon? Is it that such relations are more convenient and easier to maintain? Or are there also some more tangible benefits to be gained from this collective behaviour? The current work takes a game-theoretic perspective on this phenomenon, and studies the conditions under which different assortative mixing strategies lead to equilibrium in an evolving social network. We focus on a biased preferential attachment model where the strategy of each group (e.g., political or social minority) determines the level of bias of its members toward other group members and non-members. Our first result is that if the utility function that the group attempts to maximize is the degree centrality of the group, interpreted as the sum of degrees of the group members in the network, then the only strategy achieving Nash equilibrium is a perfect homophily, which implies that cooperation with other groups is harmful to this utility function. A second, and perhaps more surprising, result is that if a reward for inter-group cooperation is added to the utility function (e.g., externally enforced by an authority as a regulation), then there are only two possible equilibria, namely, perfect homophily or perfect heterophily, and it is possible to characterize their feasibility spaces. Interestingly, these results hold regardless of the minority-majority ratio in the population. We believe that these results, as well as the game-theoretic perspective presented herein, may contribute to a better understanding of the forces that shape the groups and communities of our society

Is altruism bad for cooperation?

Some philosophers and social scientists have stressed the importance for good government of an altruistic citizenry that values the well being of one another. Others have emphasized the need for incentives that induce even the self interested to contribute to the public good. Implicitly most have assumed that these two approaches are complementary or at worst additive. But this need not be the case. Behavioral experiments find that if reciprocity-minded subjects feel hostility towards free riders and enjoy inflicting harm on them, near efficient levels of contributions to a public good may be supported when group members have opportunities to punish low contributors. Cooperation may also be supported if individuals are sufficiently altruistic that they internalize the group benefits that their contributions produce. Using a utility function embodying both reciprocity and altruism we show that unconditional altruism towards other members attenuates the punishment motive and thus may reduce the level of punishment inflicted on defectors, resulting in lower rather than higher levels of contributions. Increases in altruism may also reduce the level of benefits from the public project net of contribution costs and punishment costs. The negative effect of altruism on cooperation and material payoffs is greater the stronger is the reciprocity motive among the members. JEL Categories: D64 (altruism); H41 (public goods)public goods, altruism, spite, reciprocity, punishment, cooperation

Individual Motivation, its Nature, Determinants and Consequences for Within Group Behavior

The paper deals with evaluating the adequacy of the assumption that in economic transactions people are self-interested insofar as they are motivated solely by the concern of maximizing their own utility, and in particular with assessing how this assumption affects within-group behavior. Policy and incentive structures based on the assumption of exogenous and self-interested motivation can undermine other sources of motivation and have negative effects both on cooperative behavior and also on economic efficiency. The paper sketches the motivational assumption of homo œconomicus: in the classical formulation, in rational choice theory and in Becker’s later work which introduces personal and social capital into the individual utility function. It then challenges the position that homo œconomicus contains an adequate characterization of human motivation for cooperative within-group behavior. It introduces alternative motivational behaviors: philia and altruism, identity and self-expression, moral rules, intrinsic motivation and social norms. It argues that motivations are complex and multiple; a single assumption of utility maximization is insufficient for policy purposes. As the individual is always a social being, how she behaves will be dependent on the social context in which she is acting. If motivations are endogenous, and if under certain conditions maximizing motivation displaces other sources of motivation, then these indirect effects, and their long term consequences for efficiency and equity, should be taken into account in framing economic policies.Motivation; Rational Choice; Self-Interest; Cooperation

Hierarchical Cooperation for Operator-Controlled Device-to-Device Communications: A Layered Coalitional Game Approach

Device-to-Device (D2D) communications, which allow direct communication among mobile devices, have been proposed as an enabler of local services in 3GPP LTE-Advanced (LTE-A) cellular networks. This work investigates a hierarchical LTE-A network framework consisting of multiple D2D operators at the upper layer and a group of devices at the lower layer. We propose a cooperative model that allows the operators to improve their utility in terms of revenue by sharing their devices, and the devices to improve their payoff in terms of end-to-end throughput by collaboratively performing multi-path routing. To help understanding the interaction among operators and devices, we present a game-theoretic framework to model the cooperation behavior, and further, we propose a layered coalitional game (LCG) to address the decision making problems among them. Specifically, the cooperation of operators is modeled as an overlapping coalition formation game (CFG) in a partition form, in which operators should form a stable coalitional structure. Moreover, the cooperation of devices is modeled as a coalitional graphical game (CGG), in which devices establish links among each other to form a stable network structure for multi-path routing.We adopt the extended recursive core, and Nash network, as the stability concept for the proposed CFG and CGG, respectively. Numerical results demonstrate that the proposed LCG yields notable gains compared to both the non-cooperative case and a LCG variant and achieves good convergence speed.Comment: IEEE Wireless Communications and Networking Conference 201

Cooperative Local Caching under Heterogeneous File Preferences

Local caching is an effective scheme for leveraging the memory of the mobile terminal (MT) and short range communications to save the bandwidth usage and reduce the download delay in the cellular communication system. Specifically, the MTs first cache in their local memories in off-peak hours and then exchange the requested files with each other in the vicinity during peak hours. However, prior works largely overlook MTs' heterogeneity in file preferences and their selfish behaviours. In this paper, we practically categorize the MTs into different interest groups according to the MTs' preferences. Each group of MTs aims to increase the probability of successful file discovery from the neighbouring MTs (from the same or different groups). Hence, we define the groups' utilities as the probability of successfully discovering the file in the neighbouring MTs, which should be maximized by deciding the caching strategies of different groups. By modelling MTs' mobilities as homogeneous Poisson point processes (HPPPs), we analytically characterize MTs' utilities in closed-form. We first consider the fully cooperative case where a centralizer helps all groups to make caching decisions. We formulate the problem as a weighted-sum utility maximization problem, through which the maximum utility trade-offs of different groups are characterized. Next, we study two benchmark cases under selfish caching, namely, partial and no cooperation, with and without inter-group file sharing, respectively. The optimal caching distributions for these two cases are derived. Finally, numerical examples are presented to compare the utilities under different cases and show the effectiveness of the fully cooperative local caching compared to the two benchmark cases