Related papers: Darwinian Adverse Selection
It is common to make a distinction between "strategic" behavior and other forms of intentional but "nonstrategic" behavior: typically, that strategic agents model other agents while nonstrategic agents do not. However, a crisp boundary…
In repeated games, such as auctions, players rely on autonomous learning agents to choose their actions. We study settings in which players have their agents make monetary transfers to other agents during play at their own expense, in order…
Natural selection favors the more successful individuals. This is the elementary premise that pervades common models of evolution. Under extreme conditions, however, the process may no longer be probabilistic. Those that meet certain…
This article presents a unified probabilistic framework that allows both rational and irrational decision making to be theoretically investigated and simulated in classical and quantum games. Rational choice theory is a basic component of…
As we show using the notion of equilibrium in the theory of infinite sequential games, bubbles and escalations are rational for economic and environmental agents, who believe in an infinite world. This goes against a vision of a self…
Assuming humans are (approximately) rational enables robots to infer reward functions by observing human behavior. But people exhibit a wide array of irrationalities, and our goal with this work is to better understand the effect they can…
Agent-based models (ABMs) are simulation models used in economics to overcome some of the limitations of traditional frameworks based on general equilibrium assumptions. However, agents within an ABM follow predetermined 'bounded rational'…
In many two-sided markets, the parties to be matched have incomplete information about their characteristics. We consider the settings where the parties engaged are extremely patient and are interested in long-term partnerships. Hence, once…
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…
Many learning algorithms are known to converge to an equilibrium for specific classes of games if the same learning algorithm is adopted by all agents. However, when the agents are self-interested, a natural question is whether agents have…
In a satisficing equilibrium each agent $i$ plays one of her top $k_i$ actions in response to the actions of the other agents. Our concept unifies models of bounded rationality and yields predictions that differ from canonical solution…
We examine the evolutionary basis for risk aversion with respect to aggregate risk. We study populations in which agents face choices between alternatives with different levels of aggregate risk. We show that the choices that maximize the…
We study the subtlety of optimal paternalism when a utilitarian planner has the power to design a discrete choice set for a heterogeneous population with bounded rationality. We first consider the planning problem in abstraction. We show…
In the optional prisoner's dilemma (OPD), players can choose to cooperate and defect as usual, but can also abstain as a third possible strategy. This strategy models the players' participation in the game and is a relevant aspect in many…
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…
Traffic scenarios are inherently interactive. Multiple decision-makers predict the actions of others and choose strategies that maximize their rewards. We view these interactions from the perspective of game theory which introduces various…
The off-switch problem is a critical challenge in AI control: if an AI system resists being switched off, it poses a significant risk. In this paper, we model the off-switch problem as a signalling game, where a human decision-maker…
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…
Recent work has considered theoretical models for the behavior of agents with specific behavioral biases: rather than making decisions that optimize a given payoff function, the agent behaves inefficiently because its decisions suffer from…
Evolutionary game theory is a successful mathematical framework geared towards understanding the selective pressures that affect the evolution of the strategies of agents engaged in interactions with potential conflicts. While a…