Related papers: The professional trader's paradox
We study the dating market decision problem in which men and women repeatedly go out on dates and learn about each other. We consider a model for the dating market that takes into account progressive mutual learning. This model consists of…
In many professons employees are rewarded according to their relative performance. Corresponding economy can be modeled by taking $N$ independent agents who gain from the market with a rate which depends on their current gain. We argue that…
Repeated game has long been the touchstone model for agents' long-run relationships. Previous results suggest that it is particularly difficult for a repeated game player to exert an autocratic control on the payoffs since they are jointly…
I give a simple analysis of the game that I previously published in Scientific American which shows the paradoxical behavior whereby two losing games randomly combine to form a winning game. The game, modeled on a random walk, requires only…
The aim of this expos\'e is to make explicit the analogy between the classical notion of non-independent probability distribution and the quantum notion of entangled state. To bring that analogy forth, we consider a classical systems with…
Human behavioural patterns exhibit selfish or competitive, as well as selfless or altruistic tendencies, both of which have demonstrable effects on human social and economic activity. In behavioural economics, such effects have…
In games with incomplete and ambiguous information, rational behavior depends not only on fundamental ambiguity (ambiguity about states) but also on strategic ambiguity (ambiguity about others' actions), which further induces hierarchies of…
Social dilemmas, where mutual cooperation can lead to high payoffs but participants face incentives to cheat, are ubiquitous in multi-agent interaction. We wish to construct agents that cooperate with pure cooperators, avoid exploitation by…
Two players alternate tossing a biased coin where the probability of getting heads is p. The current player is awarded alpha points for tails and alpha+beta for heads. The first player reaching n points wins. For a completely unfair coin…
We give elementary examples within a framework for studying decisions under uncertainty where probabilities are only roughly known. The framework, in gambling terms, is that the size of a bet is proportional to the gambler's perceived…
We consider a multi-player non-zero-sum turn-based game (abbreviated as multi-player game) on a finite directed graph. A secure equilibrium (SE) is a strategy profile in which no player has the incentive to deviate from the strategy because…
We consider 2-player zero-sum stochastic games where each player controls his own state variable living in a compact metric space. The terminology comes from gambling problems where the state of a player represents its wealth in a casino.…
Evolutionary game theory is a powerful mathematical framework to study how intelligent individuals adjust their strategies in collective interactions. It has been widely believed that it is impossible to unilaterally control players'…
Individual probabilities refer to the probabilities of outcomes that are realized only once: the probability that it will rain tomorrow, the probability that Alice will die within the next 12 months, the probability that Bob will be…
In this article, we look at a hat-guessing game, in which each player must guess the color of their own hat while only seeing the hats of the other players. We focus on the case of two hat colors and a countably infinite number of players.…
The benefits of portfolio diversification is a central tenet implicit to modern financial theory and practice. Linked to diversification is the notion of breadth. Breadth is correctly thought of as the number of in- dependent bets available…
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…
The Fermi paradox is the conflict between an expectation of a high {\em ex ante} probability of intelligent life elsewhere in the universe and the apparently lifeless universe we in fact observe. The expectation that the universe should be…
This paper studies learning in markets with aggregate uncertainty about whether trade is efficient. A long-lived seller offers prices to buyers, who are short-lived and arrive according to a Poisson process. A hidden state determines…
A greedy personality is usually accompanied by arrogance and confidence. This work investigates the cooperation success condition in the context of biased payoff allocation and self-confidence. The first component allows the organizer in a…