Decision-Making: A Neuroeconomic Perspective

This article introduces and discusses from a philosophical point of view the nascent field of neuroeconomics, which is the study of neural mechanisms involved in decision-making and their economic significance. Following a survey of the ways in which decision-making is usually construed in philosophy, economics and psychology, I review many important findings in neuroeconomics to show that they suggest a revised picture of decision-making and ourselves as choosing agents. Finally, I outline a neuroeconomic account of irrationality

Emotional Strategies as Catalysts for Cooperation in Signed Networks

The evolution of unconditional cooperation is one of the fundamental problems in science. A new solution is proposed to solve this puzzle. We treat this issue with an evolutionary model in which agents play the Prisoner's Dilemma on signed networks. The topology is allowed to co-evolve with relational signs as well as with agent strategies. We introduce a strategy that is conditional on the emotional content embedded in network signs. We show that this strategy acts as a catalyst and creates favorable conditions for the spread of unconditional cooperation. In line with the literature, we found evidence that the evolution of cooperation most likely occurs in networks with relatively high chances of rewiring and with low likelihood of strategy adoption. While a low likelihood of rewiring enhances cooperation, a very high likelihood seems to limit its diffusion. Furthermore, unlike in non-signed networks, cooperation becomes more prevalent in denser topologies.Comment: 24 pages, Accepted for publication in Advances in Complex System

Affect and believability in game characters:a review of the use of affective computing in games

Virtual agents are important in many digital environments. Designing a character that highly engages users in terms of interaction is an intricate task constrained by many requirements. One aspect that has gained more attention recently is the effective dimension of the agent. Several studies have addressed the possibility of developing an affect-aware system for a better user experience. Particularly in games, including emotional and social features in NPCs adds depth to the characters, enriches interaction possibilities, and combined with the basic level of competence, creates a more appealing game. Design requirements for emotionally intelligent NPCs differ from general autonomous agents with the main goal being a stronger player-agent relationship as opposed to problem solving and goal assessment. Nevertheless, deploying an affective module into NPCs adds to the complexity of the architecture and constraints. In addition, using such composite NPC in games seems beyond current technology, despite some brave attempts. However, a MARPO-type modular architecture would seem a useful starting point for adding emotions

Decision-Making: A Neuroeconomic Perspective

This article introduces and discusses from a philosophical point of view the nascent field of neuroeconomics, which is the study of neural mechanisms involved in decision-making and their economic significance. Following a survey of the ways in which decision-making is usually construed in philosophy, economics and psychology, I review many important findings in neuroeconomics to show that they suggest a revised picture of decision-making and ourselves as choosing agents. Finally, I outline a neuroeconomic account of irrationality.neuroeconomics; decision-making; rationality; ultimatum; philosophy; psychology

Landscape in the Economy of Conspicuous Consumptions \ud

Psychological states side by side with the bounded rational expectations among social agents contributes to the pattern of consumptions in economic system. One of the psychological states are the envy – a tendency to emulate any gaps with other agents’ properties. The evolutionary game theoretic works on conspicuous consumption are explored by growing the micro-view of economic agency in lattice-based populations, the landscape of consumptions. The emerged macro-view of multiple equilibria is shown in computational simulative demonstrations altogether with the spatial clustered agents based upon the emerged agents’ economic profiles

Integration of psychological models in the design of artificial creatures

Artificial creatures form an increasingly important component of interactive computer games. Examples of such creatures exist which can interact with each other and the game player and learn from their experiences. However, we argue, the design of the underlying architecture and algorithms has to a large extent overlooked knowledge from psychology and cognitive sciences. We explore the integration of observations from studies of motivational systems and emotional behaviour into the design of artificial creatures. An initial implementation of our ideas using the “sim agent” toolkit illustrates that physiological models can be used as the basis for creatures with animal like behaviour attributes. The current aim of this research is to increase the “realism” of artificial creatures in interactive game-play, but it may have wider implications for the development of AI

Neuroeconomics: Using Neuroscience to Make Economic Predictions

Neuroeconomics seeks to ground economic theory in detailed neural mechanisms which are expressed mathematically and make behavioural predictions. One finding is that simple kinds of economising for life-and-death decisions (food, sex and danger) do occur in the brain as rational theories assume. Another set of findings appears to support the neural basis of constructs posited in behavioural economics, such as a preference for immediacy and nonlinear weighting of small and large probabilities. A third direction shows how understanding neural circuitry permits predictions and causal experiments which show state-dependence of revealed preference – except that states are biological and neural variables

Beyond foraging: behavioral science and the future of institutional economics

Institutions affect economic outcomes, but variation in them cannot be directly linked to environmental factors such as geography, climate, or technological availabilities. Game theoretic approaches, based as they typically are on foraging only assumptions, do not provide an adequate foundation for understanding the intervening role of politics and ideology; nor does the view that culture and institutions are entirely socially constructed. Understanding what institutions are and how they influence behavior requires an approach that is in part biological, focusing on cognitive and behavioral adaptations for social interaction favored in the past by group selection. These adaptations, along with their effects on canalizing social learning, help to explain uniformities in political and social order, and are the bedrock upon which we build cultural and institutional variability

Computational rationality and voluntary provision of public goods: an agent-based simulation model

The issue of the cooperation among private agents in realising collective goods has always raised problems concerning the basic nature of individual behaviour as well as the more traditional economic problems. The Computational Economics literature on public goods provision can be useful to study the possibility of cooperation under alternative sets of assumptions concerning the nature of individual rationality and the kind of interactions between individuals. In this work I will use an agent-based simulation model to study the evolution of cooperation among private agents taking part in a collective project: a high number of agents, characterised by computational rationality, defined as the capacity to calculate and evaluate their own immediate payoffs perfectly and without errors, interact to producing a public good. The results show that when the agents’ behaviour is not influenced either by expectations of others’ behaviour or by social and relational characteristics, they opt to contribute to the public good to an almost socially optimal extent, even where there is no big difference between the rates of return on the private and the public investment.Computational Economics; Agent-based models; Social Dilemmas; Collective Action; Public Goods