Related papers: What does Newcomb's paradox teach us?
We study an ensemble of individuals playing the two games of the so-called Parrondo paradox. In our study, players are allowed to choose the game to be played by the whole ensemble in each turn. The choice cannot conform to the preferences…
We consider how an agent should update her uncertainty when it is represented by a set $\P$ of probability distributions and the agent observes that a random variable $X$ takes on value $x$, given that the agent makes decisions using the…
In this article, I will present a paradox whose purpose is to draw your attention to an important topic in finance, concerning the non-independence of the financial returns (non-ergodic hypothesis). In this paradox, we have two people…
So far, the theory of equilibrium selection in the infinitely repeated prisoner's dilemma is insensitive to communication possibilities. To address this issue, we incorporate the assumption that communication reduces -- but does not…
Decomposition methods are often used for producing counterfactual predictions in non-strategic settings. When the outcome of interest arises from a game-theoretic setting where agents are better off by deviating from their strategies after…
We study a simple example of a sequential game illustrating problems connected with making rational decisions that are universal for social sciences. The set of chooser's optimal decisions that manifest his preferences in case of a constant…
The combination of the Bayesian game and learning has a rich history, with the idea of controlling a single agent in a system composed of multiple agents with unknown behaviors given a set of types, each specifying a possible behavior for…
The transitivity of preferences is one of the basic assumptions used in the theory of games and decisions. It is often equated with rationality of choice and is considered useful in building rankings. Intransitive preferences are considered…
We describe and develop a close relationship between two problems that have customarily been regarded as distinct: that of maximizing entropy, and that of minimizing worst-case expected loss. Using a formulation grounded in the equilibrium…
In a prediction tournament, contestants "forecast" by asserting a numerical probability for each of (say) 100 future real-world events. The scoring system is designed so that (regardless of the unknown true probabilities) more accurate…
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…
In game theory, the notion of a player's beliefs about the game players' beliefs about other players' beliefs arises naturally. In this paper, we present a non-self-referential paradox in epistemic game theory which shows that completely…
Paradox of choice occurs when permitting new strategies to some players yields lower payoffs for all players in the new equilibrium via a sequence of individually rational actions. We consider social network games. In these games the payoff…
In many social dilemmas, individuals tend to generate a situation with low payoffs instead of a system optimum ("tragedy of the commons"). Is the routing of traffic a similar problem? In order to address this question, we present…
The host of a game presents two indistinguishable envelopes to an agent. One of the envelopes is randomly selected and allocated to the agent. The agent is informed that the monetary content of one of the envelopes is twice that of the…
In repeated interactions between individuals, we do not expect that exactly the same situation will occur from one time to another. Contrary to what is common in models of repeated games in the literature, most real situations may differ a…
The paper studies one-shot two-player games with non-Bayesian uncertainty. The players have an attitude that ranges from optimism to pessimism in the face of uncertainty. Given the attitudes, each player forms a belief about the set of…
This paper examines the integration of computational complexity into game theoretic models. The example focused on is the Prisoner's Dilemma, repeated for a finite length of time. We show that a minimal bound on the players' computational…
Many writers have observed that default logics appear to contain the "lottery paradox" of probability theory. This arises when a default "proof by contradiction" lets us conclude that a typical X is not a Y where Y is an unusual subclass of…
The two envelopes paradox is discussed. By calculating the conditional probability, we arrive at a conditional expectations which differs from existing results.