English

Evolution of Fairness in the Not Quite Ultimatum Game

Physics and Society 2017-04-06 v2 Computer Science and Game Theory Populations and Evolution

Abstract

The Ultimatum Game (UG) is an economic game where two players (proposer and responder) decide how to split a certain amount of money. While traditional economic theories based on rational decision making predict that the proposer should make a minimal offer and the responder should accept it, human subjects tend to behave more fairly in UG. Previous studies suggested that extra information such as reputation, empathy, or spatial structure is needed for fairness to evolve in UG. Here we show that fairness can evolve without additional information if players make decisions probabilistically and may continue interactions when the offer is rejected, which we call the Not Quite Ultimatum Game (NQUG). Evolutionary simulations of NQUG showed that the probabilistic decision making contributes to the increase of proposers' offer amounts to avoid rejection, while the repetition of the game works to responders' advantage because they can wait until a good offer comes. These simple extensions greatly promote evolution of fairness in both proposers' offers and responders' acceptance thresholds.

Keywords

Cite

@article{arxiv.1402.4740,
  title  = {Evolution of Fairness in the Not Quite Ultimatum Game},
  author = {Genki Ichinose and Hiroki Sayama},
  journal= {arXiv preprint arXiv:1402.4740},
  year   = {2017}
}

Comments

14 pages, 3 figures