Related papers: Bounding Rationality by Discounting Time
We propose a game-theoretic framework that incorporates both incomplete information and general ambiguity attitudes on factors external to all players. Our starting point is players' preferences on payoff-distribution vectors, essentially…
In experimental applications of bounded-reasoning models, behavior is often summarized by distributions of "levels". We argue that such summaries conflate two conceptually distinct dimensions: a player's type, capturing beliefs about what…
We consider an optimal partition of resources (e.g. consumers) between several agents (e.g. experts), given utility functions ("wisdoms") for the agents and their capacities. This problem is a variant of optimal transport…
Colonel Blotto games with discrete strategy spaces effectively illustrate the intricate nature of multidimensional strategic reasoning. This paper studies the equilibrium set of such games where, in line with prior experimental work, the…
In general, Nash equilibria in normal-form games may require players to play (probabilistically) mixed strategies. We define a measure of the complexity of finite probability distributions and study the complexity required to play Nash…
There is a common belief that humans and many animals follow transitive inference (choosing A over C on the basis of knowing that A is better than B and B is better than C). Transitivity seems to be the essence of rational choice. We…
We consider infinite-state turn-based stochastic games of two players, Box and Diamond, who aim at maximizing and minimizing the expected total reward accumulated along a run, respectively. Since the total accumulated reward is unbounded,…
A set of objects is to be divided fairly among agents with different tastes, modeled by additive utility-functions. If we consider the objects as indivisible, many instances of the decision problem: ``Is there a fair division of the objects…
Rationality is often related to optimal decision making. Humans are known to be bounded rational agents. However, recent advances in computing, and other scientific and technical fields along with large amount of data have led to a feeling…
Today's multiagent systems have grown too complex to rely on centralized controllers, prompting increasing interest in the design of distributed algorithms. In this respect, game theory has emerged as a valuable tool to complement more…
We analyze cooperative Cournot games with boundedly rational firms. Due to cogni- tive constraints, the members of a coalition cannot accurately predict the coalitional structure of the non-members. Thus, they compute their value using…
Nash equilibria are defined using uncorrelated behavioural or mixed joint probability distributions effectively assuming that players of bounded rationality must discard information to locate equilibria. We propose instead that rational…
Rationality has been an intriguing topic for several decades. Even the scope of definition of rationality across different subjects varies. Several theories (e.g., game theory) initially evolved on the basis that agents (e.g., humans) are…
Classical game theory is a powerful framework to analyze the strategic interactions among rational players. However, in many real-life scenarios, players choose actions based on their inherent natural tendencies rather than deliberate…
In many multi-agent settings, participants can form teams to achieve collective outcomes that may far surpass their individual capabilities. Measuring the relative contributions of agents and allocating them shares of the reward that…
Overcoming the impact of selfish behavior of rational players in multiagent systems is a fundamental problem in game theory. Without any intervention from a central agent, strategic users take actions in order to maximize their personal…
While conventional ranking systems focus solely on maximizing the utility of the ranked items to users, fairness-aware ranking systems additionally try to balance the exposure for different protected attributes such as gender or race. To…
Here, we present the quantum version of a very famous statistical decision problem, whose classical version is counter-intuitive to many. The Monty Hall game can be phrased as a two person game between Alice and Bob. In their pioneering…
In the ultimatum game, the challenge is to explain why responders reject non-zero offers thereby defying classical rationality. Fairness and related notions have been the main explanations so far. We explain this rejection behavior via the…
We use techniques from the statistical mechanics of disordered systems to analyse the properties of Nash equilibria of bimatrix games with large random payoff matrices. By means of an annealed bound, we calculate their number and analyse…