875 research outputs found

    Structural power and the evolution of collective fairness in social networks

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    From work contracts and group buying platforms to political coalitions and international climate and economical summits, often individuals assemble in groups that must collectively reach decisions that may favor each part unequally. Here we quantify to which extent our network ties promote the evolution of collective fairness in group interactions, modeled by means of Multiplayer Ultimatum Games (MUG). We show that a single topological feature of social networks-which we call structural power-has a profound impact on the tendency of individuals to take decisions that favor each part equally. Increased fair outcomes are attained whenever structural power is high, such that the networks that tie individuals allow them to meet the same partners in different groups, thus providing the opportunity to strongly influence each other. On the other hand, the absence of such close peer-influence relationships dismisses any positive effect created by the network. Interestingly, we show that increasing the structural power of a network leads to the appearance of well-defined modules-as found in human social networks that often exhibit community structure-providing an interaction environment that maximizes collective fairness.This research was supported by Fundacao para a Ciencia e Tecnologia (FCT) through grants SFRH/BD/94736/2013, PTDC/EEI-SII/5081/2014, PTDC/MAT/STA/3358/2014 and by multi-annual funding of CBMA and INESC-ID (under the projects UID/BIA/04050/2013 and UID/CEC/50021/2013) provided by FCT. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.info:eu-repo/semantics/publishedVersio

    The reputation of punishers

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    Punishment is a potential mechanism to stabilise cooperation between self-regarding agents. Theoretical and empirical studies on the importance of a punitive reputation have yielded conflicting results. Here, we propose that a variety of factors interact to explain why a punitive reputation is sometimes beneficial and sometimes harmful. We predict that benefits are most likely to occur in forced play scenarios and in situations where punishment is the only means to convey an individual's cooperative intent and willingness to uphold fairness norms. By contrast, if partner choice is possible and an individual's cooperative intent can be inferred directly, then individuals with a nonpunishing cooperative reputation should typically be preferred over punishing cooperators

    Reputation in an economic game modulates premotor cortex activity during action observation

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    Our interactions with other people – and our processing of their actions – are shaped by their reputation. Research has identified an Action Observation Network (AON) which is engaged when observing other people's actions. Yet, little is known about how the processing of others’ actions is influenced by another's reputation. Is the response of the AON modulated by the reputation of the actor? We developed a variant of the ultimatum game in which participants watched either the visible or occluded actions of two ‘proposers’. These actions were tied to decisions of how to split a pot of money although the proposers’ decisions on each trial were not known to participants when observing the actions. One proposer made fair offers on the majority of trials, establishing a positive reputation, whereas the other made predominantly, unfair offers resulting in a negative reputation. We found significant activations in two regions of the left dorsal premotor cortex (dPMC). The first of these showed a main effect of reputation with greater activation for the negative reputation proposer than the positive reputation proposer. Furthermore individual differences in trust ratings of the two proposers covaried with activation in the right primary motor cortex (M1). The second showed an interaction between visibility and reputation driven by a greater effect of reputation when participants were observing an occluded action. Our findings show that the processing of others’ actions in the AON is modulated by an actor's reputation, and suggest a predictive role for the PMC during action observation

    Effect of Emotion and Personality on Deviation from Purely Rational Decision-Making

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    Human decision-making has consistently demonstrated deviation from "pure" rationality. Emotions are a primary driver of human actions and the current study investigates how perceived emotions and personality traits may affect decision-making during the Ultimatum Game (UG). We manipulated emotions by showing images with emotional connotation while participants decided how to split money with a second player. Event-related potentials (ERPs) from scalp electrodes were recorded during the whole decision-making process. We observed significant differences in the activity of central and frontal areas when participants offered money with respect to when they accepted or rejected an offer. We found that participants were more likely to offer a higher amount of money when making their decision in association with negative emotions. Furthermore, participants were more likely to accept offers when making their decision in association with positive emotions. Honest, conscientious, and introverted participants were more likely to accept offers. Our results suggest that factors others than a rational strategy may predict economic decision-making in the UG

    The Law and Ethics of High-Frequency Trading

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    The Law and Ethics of High-Frequency Trading

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    Resource heterogeneity can facilitate cooperation

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    Although social structure is known to promote cooperation, by locally exposing selfish agents to their own deeds, studies to date assumed that all agents have access to the same level of resources. This is clearly unrealistic. Here we find that cooperation can be maintained when some agents have access to more resources than others. Cooperation can then emerge even in populations in which the temptation to defect is so strong that players would act fully selfishly if their resources were distributed uniformly. Resource heterogeneity can thus be crucial for the emergence and maintenance of cooperation. We also show that resource heterogeneity can hinder cooperation once the temptation to defect is significantly lowered. In all cases, the level of cooperation can be maximized by managing resource heterogeneity

    The social brain: allowing humans to boldly go where no other species has been

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    The biological basis of complex human social interaction and communication has been illuminated through a coming together of various methods and disciplines. Among these are comparative studies of other species, studies of disorders of social cognition and developmental psychology. The use of neuroimaging and computational models has given weight to speculations about the evolution of social behaviour and culture in human societies. We highlight some networks of the social brain relevant to two-person interactions and consider the social signals between interacting partners that activate these networks.Wemake a case for distinguishing between signals that automatically trigger interaction and cooperation and ostensive signals that are used deliberately.We suggest that this ostensive signalling is needed for ‘closing the loop’ in two-person interactions, where the partners each know that they have the intention to communicate. The use of deliberate social signals can serve to increase reputation and trust and facilitates teaching. This is likely to be a critical factor in the steep cultural ascent ofmankind

    Institutional Incentives for the Evolution of Committed Cooperation: Ensuring Participation is as Important as Enhancing Compliance

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    Both conventional wisdom and empirical evidence suggests that arranging a prior commitment or agreement before an interaction enhances the chance of reaching mutual cooperation. Yet it is not clear what mechanisms can promote the participation in and compliance with such a commitment, especially when the former is costly and deviating from the latter is profitable. Prior work either considers regimented commitments where compensation is assumed enforceable from dishonest committers, or assume implicit commitments from every individual (so they are all in and thus being treated as such). Here we develop a theory of participation and compliance with respect to an explicit prior commitment under institutional incentives where individuals, at first, decide whether or not to join a cooperative agreement to play a one-shot social dilemma game. Using a mathematical model, we determine when participating in a costly commitment and complying with it, is an evolutionary stable strategy (ESS) when playing against all other possible strategies, and results in high levels of cooperation in the population. We show that, given a sufficient budget for providing incentives, reward of commitment compliant behaviours better promotes cooperation than punishment of non-compliant ones. Moreover, by sparing part of this budget for rewarding those who are willing to participate in a commitment, the overall frequency of cooperation can be significantly enhanced, for both reward and punishment. Finally, we find that, surprisingly, the presence of errors in a participation decision favours evolutionary stability of commitment compliant strategies and higher levels of cooperation

    The Inevitability of Theory

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    I wrote this Article in response to an invitation to deliver the keynote address at Berkeley Law School’s Jurisprudence and Social Policy conference Building Theory Through Empirical Legal Studies. Lauren Edelman, the intellectual mother of the conference, gently brushed aside my suggestion that I present one of my own attempts to synthesize the results of empirical research to generate theory, and asked that I directly address the conference topic. I am glad that she did
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