Related papers: Bubbles are rational
Many real-world systems are composed of interdependent networks that rely on one another. Such networks are typically designed and operated by different entities, who aim at maximizing their own payoffs. There exists a game among these…
The standard criterion of rationality in economics is the maximization of a utility function that is stable across multiple observations of an agent's choice behavior. In this paper, we discuss two notions of the money pump that…
Admissible strategies, i.e. those that are not dominated by any other strategy, are a typical rationality notion in game theory. In many classes of games this is justified by results showing that any strategy is admissible or dominated by…
In this paper, we discuss different models for human logic systems and describe a game with nature. Godel`s incompleteness theorem is taken into account to construct a model of logical networks based on axioms obtained by symmetry breaking.…
We introduce a new paradigm for game theory -- Bayesian satisfaction. This novel approach is a synthesis of the idea of Bayesian rationality introduced by Aumann, and satisfaction games. The concept of Bayesian rationality for which, in…
Although both systems analyzed are described through two theories apparently different (quantum mechanics and game theory) it is shown that both are analogous and thus exactly equivalents. The quantum analogue of the replicator dynamics is…
At the beginning of a dynamic game, players may have exogenous theories about how the opponents are going to play. Suppose that these theories are commonly known. Then, players will refine their first-order beliefs, and challenge their own…
Traditional game theory assumes that the players in the game are aware of the rules of the game. However, in practice, often the players are unaware or have only partial knowledge about the game they are playing. They may also have…
Congestion games model a wide variety of real-world resource congestion problems, such as selfish network routing, traffic route guidance in congested areas, taxi fleet optimization and crowd movement in busy areas. However, existing…
The standard game-theoretic solution concept, Nash equilibrium, assumes that all players behave rationally. If we follow a Nash equilibrium and opponents are irrational (or follow strategies from a different Nash equilibrium), then we may…
Understanding how biological organisms make decisions is of fundamental importance in understanding behavior. Such an understanding within evolutionary game theory so far has been sought by appealing to bounded rationality. Here, we present…
It is frequently suggested that predictions made by game theory could be improved by considering computational restrictions when modeling agents. Under the supposition that players in a game may desire to balance maximization of payoff with…
From the standpoint of game theory, dominoes is a game that has not received much attention (specially the variety known as draw). It is usually thought that this game is already solved, given general results in game theory. However, the…
This paper proposes a new equilibrium concept "robust perfect equilibrium" for non-cooperative games with a continuum of players, incorporating three types of perturbations. Such an equilibrium is shown to exist (in symmetric mixed…
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…
Nonmonotonic reasoning is a pattern of reasoning that allows an agent to make and retract (tentative) conclusions from inconclusive evidence. This paper gives a possible-worlds interpretation of the nonmonotonic reasoning problem based on…
Is it rational for selfish individuals to cooperate? The conventional answer based on analysis of games such as the Prisoners Dilemma (PD) is that it is not, even though mutual cooperation results in a better outcome for all. This…
Despite the emphases on computability issues in research of algorithmic game theory, the limited computational capacity of players have received far less attention. This work examines how different levels of players' computational ability…
In many game-theoretic settings, agents are challenged with taking decisions against the uncertain behavior exhibited by others. Often, this uncertainty arises from multiple sources, e.g., incomplete information, limited computation,…
We attempt to make superdeterminism more intuitive, notably by simulating a deterministic model system, a billiard game. In this system an initial 'bang' correlates all events, just as in the superdeterministic universe. We introduce the…