The Compromise Value for Cooperative Games with Random Payoffs

AMS classification: 90D12;cooperative games

The Compromise Value for Cooperative Games with Random Payoffs

AMS classification: 90D12;

A non-cooperative foundation for the continuous Raiffa solution

This paper provides a non-cooperative foundation for (asymmetric generalizations of) the continuous Raiffa solution. Specifically, we consider a continuous-time variation of the classic Ståhl–Rubinstein bargaining model, in which there is a finite deadline that ends the negotiations, and in which each player’s opportunity to make proposals is governed by a player-specific Poisson process, in that the rejecter of a proposal becomes proposer at the first next arrival of her process. Under the assumption that future payoffs are not discounted, it is shown that the expected payoffs players realize in subgame perfect equilibrium converge to the continuous Raiffa solution outcome as the deadline tends to infinity. The weights reflecting the asymmetries among the players correspond to the Poisson arrival rates of their respective proposal processes

Learning in Repeated Games: Human Versus Machine

While Artificial Intelligence has successfully outperformed humans in complex combinatorial games (such as chess and checkers), humans have retained their supremacy in social interactions that require intuition and adaptation, such as cooperation and coordination games. Despite significant advances in learning algorithms, most algorithms adapt at times scales which are not relevant for interactions with humans, and therefore the advances in AI on this front have remained of a more theoretical nature. This has also hindered the experimental evaluation of how these algorithms perform against humans, as the length of experiments needed to evaluate them is beyond what humans are reasonably expected to endure (max 100 repetitions). This scenario is rapidly changing, as recent algorithms are able to converge to their functional regimes in shorter time-scales. Additionally, this shift opens up possibilities for experimental investigation: where do humans stand compared with these new algorithms? We evaluate humans experimentally against a representative element of these fast-converging algorithms. Our results indicate that the performance of at least one of these algorithms is comparable to, and even exceeds, the performance of people

A note on the t-value and t-related solution concepts

Game Theory

Cooperative game theory and its application to natural, environmental, and water resource issues : 1. basic theory

Game theory provides useful insights into the way parties that share a scarce resource may plan their use of the resource under different situations. This review provides a brief and self-contained introduction to the theory of cooperative games. It can be used to get acquainted with the basics of cooperative games. Its goal is also to provide a basic introduction to this theory, in connection with a couple of surveys that analyze its use in the context of environmental problems and models. The main models (bargaining games, transfer utility, and non-transfer utility games) and issues and solutions are considered: bargaining solutions, single-value solutions like the Shapley value and the nucleolus, and multi-value solutions such as the core. The cooperative game theory (CGT) models that are reviewed in this paper favor solutions that include all possible players and ignore the strategic stages leading to coalition building. They focus on the possible results of the cooperation by answering questions such as: Which coalitions can be formed? And how can the coalitional gains be divided to secure a sustainable agreement? An important aspect associated with the solution concepts of CGT is the equitable and fair sharing of the cooperation gains.Environmental Economics&Policies,Economic Theory&Research,Livestock&Animal Husbandry,Education for the Knowledge Economy,Education for Development (superceded)

Modelling Negotiated Decision Making: a Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty

The relevance of bargaining to everyday life can easily be ascertained, yet the study of any bargaining process is extremely hard, involving a multiplicity of questions and complex issues. The objective of this paper is to provide new insights on some dimensions of the bargaining process – asymmetries and uncertainties in particular – by using a non-cooperative game theory approach. We develop a computational model which simulates the process of negotiation among more than two players, who bargain over the sharing of more than one pie. Through numerically simulating several multiple issues negotiation games among multiple players, we identify the main features of players’ optimal strategies and equilibrium agreements. As in most economic situations, uncertainty crucially affects also bargaining processes. Therefore, in our analysis, we introduce uncertainty over the size of the pies to be shared and assess the impacts on players’ strategic behaviour. Our results confirm that uncertainty crucially affects players’ behaviour and modify the likelihood of a self-enforcing agreement to emerge. The model proposed here can have several applications, in particular in the field of natural resource management, where conflicts over how to share a resource of a finite size are increasing.bargaining, non-cooperative game theory, simulation models, uncertainty

Why and How Identity Should Influence Utility

This paper provides an argument for the advantage of a preference for identity-consistent behaviour from an evolutionary point of view. Within a stylised model of social interaction, we show that the development of cooperative social norms is greatly facilitated if the agents of the society possess a preference for identity consistent behaviour. As cooperative norms have a positive impact on aggregate outcomes, we conclude that such preferences are evolutionarily advantageous. Furthermore, we discuss how such a preference can be integrated in the modelling of utility in order to account for the distinctive cooperative trait in human behaviour and show how this squares with the evidence