281 research outputs found
Strategic Capacity Planning Problems in Revenue‐Sharing Joint Ventures
Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/154244/1/poms13128_am.pdfhttps://deepblue.lib.umich.edu/bitstream/2027.42/154244/2/poms13128.pd
Coordination and transfer
We study the ability of subjects to transfer principles between related coordination games. Subjects play a class of order statistic coordination games closely related to the well-known minimum (or weak-link) and median games (Van Huyck et al. in Am Econ Rev 80:234–248, 1990, Q J Econ 106(3):885–910, 1991). When subjects play a random sequence of games with differing order statistics, play is less sensitive to the order statistic than when a fixed order statistic is used throughout. This is consistent with the prediction of a simple learning model with transfer. If subjects play a series of similar stag hunt games, play converges to the payoff dominant equilibrium when a convention emerges, replicating the main result of Rankin et al. (Games Econ Behav 32:315–337, 2000). When these subjects subsequently play a random sequence of order statistic games, play is shifted towards the payoff dominant equilibrium relative to subjects without previous experience. The data is consistent with subjects absorbing a general principle, play of the payoff dominant equilibrium, and applying it in a new related setting
Measuring Strategic Uncertainty in Coordination Games
Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004This paper explores predictability of behavior in coordination games with multiple equilibria. In a laboratory experiment we measure subjects' certainty equivalents for three coordination games and one lottery. Attitudes towards strategic uncertainty in coordination games are related to risk aversion, experience seeking, gender and age. From the distribution of certainty equivalents among participating students we estimate probabilities for successful coordination in a wide range of coordination games. For many games success of coordination is predictable with a reasonable error rate. The best response of a risk neutral player is close to the global-game solution. Comparing choices in coordination games with revealed risk aversion, we estimate subjective probabilities for successful coordination. In games with a low coordination requirement, most subjects underestimate the probability of success. In games with a high coordination requirement, most subjects overestimate this probability. Data indicate that subjects have probabilistic beliefs about success or failure of coordination rather than beliefs about individual behavior of other players
Volatile Decision Dynamics: Experiments, Stochastic Description, Intermittency Control, and Traffic Optimization
The coordinated and efficient distribution of limited resources by individual
decisions is a fundamental, unsolved problem. When individuals compete for road
capacities, time, space, money, goods, etc., they normally make decisions based
on aggregate rather than complete information, such as TV news or stock market
indices. In related experiments, we have observed a volatile decision dynamics
and far-from-optimal payoff distributions. We have also identified ways of
information presentation that can considerably improve the overall performance
of the system. In order to determine optimal strategies of decision guidance by
means of user-specific recommendations, a stochastic behavioural description is
developed. These strategies manage to increase the adaptibility to changing
conditions and to reduce the deviation from the time-dependent user
equilibrium, thereby enhancing the average and individual payoffs. Hence, our
guidance strategies can increase the performance of all users by reducing
overreaction and stabilizing the decision dynamics. These results are highly
significant for predicting decision behaviour, for reaching optimal behavioural
distributions by decision support systems, and for information service
providers. One of the promising fields of application is traffic optimization.Comment: For related work see http://www.helbing.or
It is Hobbes, not Rousseau:an experiment on voting and redistribution
We perform an experiment which provides a laboratory replica of some
important features of the welfare state. In the experiment, all individuals in a group
decide whether to make a costly effort, which produces a random (independent) outcome
for each one of them. The group members then vote on whether to redistribute
the resulting and commonly known total sum of earnings equally amongst themselves.
This game has two equilibria, if played once. In one of them, all players make
effort and there is little redistribution. In the other one, there is no effort and nothingWe thank Iris Bohnet, Tim Cason, David Cooper, John Duffy, Maia Guell, John Van Huyck and Robin Mason for helpful conversations and encouragement. The comments of the Editor and two referees helped improve the paper. We gratefully acknowledge the financial support from Spain’s Ministry of Science and Innovation under grants CONSOLIDER INGENIO 2010 CSD2006-0016 (all authors), ECO2009-10531 (Cabrales), ECO2008-01768 (Nagel) and the Comunidad de Madrid under grant Excelecon (Cabrales), the Generalitat de Catalunya and the CREA program (Nagel), and project SEJ2007-64340 of Spain’s Ministerio de Educación y Ciencia (Rodríguez Mora).Publicad
Geometric representations for minimalist grammars
We reformulate minimalist grammars as partial functions on term algebras for
strings and trees. Using filler/role bindings and tensor product
representations, we construct homomorphisms for these data structures into
geometric vector spaces. We prove that the structure-building functions as well
as simple processors for minimalist languages can be realized by piecewise
linear operators in representation space. We also propose harmony, i.e. the
distance of an intermediate processing step from the final well-formed state in
representation space, as a measure of processing complexity. Finally, we
illustrate our findings by means of two particular arithmetic and fractal
representations.Comment: 43 pages, 4 figure
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