Emotions in a repeated cournot duopoly game: A psychophysiological experiment

The reason why cooperation occurs in repeated games has remained a puzzle. Earlier literature has maintained that reciprocal behavior that gives rise to cooperation can be entirely self-regarding. However, experimental evidence shows that reciprocal behavior is other-regarding in many one-shot games. This other-regarding behavior is believed to have an emotional foundation. We hypothesized that emotions play a role in reciprocal behavior in repeated games as well. We tested this hypothesis by measuring the psychophysiological correlates of emotions from pairs of subjects as they played a repeated Cournot duopoly game. The players, who were in different rooms and remained anonymous to each other, made adjustment decisions to their production quantities that determined their payoffs in each round. Autonomic nervous system arousal was activated when the payoffs of both players decreased in a round, whereas positive affect was expressed when the payoffs of both players increased in a round. The disgust expression was related to a player's own one-sided increase in the payoff. Anger was expressed occasionally but less frequently when the outcome was the player's ideal outcome. An upwards adjustment of the production quantity was observed when the other player did not cooperate. This had the effect of decreasing the payoffs of both players and this was also related to an increase in the level of arousal. Our results provide evidence on how emotions are present in reciprocal behavior in a repeated social dilemma game. The results challenge recent behavioral research that advocates self-regarded motivations of cooperation in repeated games

Behavioural operational research: returning to the roots of the OR profession

We witness and welcome the resurgence of interest in the study of behavioural issues in the conduct of operational research (OR). The use of the term ‘resurgence’ is deliberate: the consideration of human factors in models and model-supported processes can be traced back to debates in the 1960s and 1970s (e.g. Ackoff, 1977; Churchman, 1970; Dutton & Walton, 1964). However, whilst the socially situated nature of OR in practice has long been recognised (e.g. Keys, 1997), it was not until the wave of recent activity triggered by Hamalainen et al.’s (2013) paper in this journal that the role and impact of behaviour in OR practice regained centrality in academic and practitioners circles alike

Operational Research: Methods and Applications

Throughout its history, Operational Research has evolved to include a variety of methods, models and algorithms that have been applied to a diverse and wide range of contexts. This encyclopedic article consists of two main sections: methods and applications. The first aims to summarise the up-to-date knowledge and provide an overview of the state-of-the-art methods and key developments in the various subdomains of the field. The second offers a wide-ranging list of areas where Operational Research has been applied. The article is meant to be read in a nonlinear fashion. It should be used as a point of reference or first-port-of-call for a diverse pool of readers: academics, researchers, students, and practitioners. The entries within the methods and applications sections are presented in alphabetical order

Decision Structuring Dialogue

The paper presents a dialogue method called Decision Structuring Dialogue to be used in group decision making. Through a focus on the facilitation of dialogue and on the conversational aspects of problem structuring, we show how Decision Structuring Dialogue facilitates collective framing and structuring of complex problems under conflicting interests. Decision Structuring Dialogue is suitable for structuring problems that involve multiple actors, multiple perspectives and conflicting interests. Decision Structuring Dialogue is a process helping to create a shared vision of the problem and the possible decision alternatives. It complements other problem structuring methods and acts as the first step in multiple criteria decision analysis. The method was successfully applied in the steering group of a Finnish lake regulation project with a high conflict factor.Peer reviewe