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Here we study the effects of adopting different strategies against different opponent instead of adopting the same strategy against all of them in the prisoner dilemma structured in well-mixed populations. We consider an evolutionary…

Physics and Society · Physics 2015-05-14 Lucas Wardil , Jafferson K. L. da Silva

We present a dynamical model for the price evolution of financial assets. The model is based in a two level structure. In the first stage one finds an agent-based model that describes the present state of the investors' beliefs,…

Trading and Market Microstructure · Quantitative Finance 2009-07-30 Miquel Montero

Populations of replicating entities frequently experience sudden or cyclical changes in environment. We explore the implications of this phenomenon via a environmental switching parameter in several common evolutionary dynamics models…

Dynamical Systems · Mathematics 2013-06-12 Marc Harper , Dashiell Fryer , Andrew Vlasic

Evolution is based on the assumption that competing players update their strategies to increase their individual payoffs. However, while the applied updating method can be different, most of previous works proposed uniform models where…

Physics and Society · Physics 2018-04-04 Zsuzsa Danku , Zhen Wang , Attila Szolnoki

We integrate dual-process theories of human cognition with evolutionary game theory to study the evolution of automatic and controlled decision-making processes. We introduce a model where agents who make decisions using either automatic or…

Dynamical Systems · Mathematics 2015-07-07 Danielle F. P. Toupo , Steven H. Strogatz , Jonathan D. Cohen , David G. Rand

The author seeks to develop a model to alter the bid-offer spread, currently quoted by market makers, that varies with the market and trading conditions. The dynamic nature of financial markets and trading, as with the rest of social…

Economics · Quantitative Finance 2016-02-03 Ravi Kashyap

We study a dynamical model of a population of cooperators and defectors whose actions have long-term consequences on environmental "commons" - what we term the "resource". Cooperators contribute to restoring the resource whereas defectors…

Systems and Control · Computer Science 2025-05-06 Keith Paarporn , Ceyhun Eksin , Joshua S. Weitz , Yorai Wardi

We propose an evolutionary competition model to investigate the green transition of firms, highlighting the role of adjustment costs, dynamically adjusted transition risk, and green technology progress in this process. Firms base their…

Theoretical Economics · Economics 2024-10-29 Davide Radi , Frank Westerhoff

The dynamical evolution of many economic, sociological, biological and physical systems tends to be dominated by a relatively small number of unexpected, large changes (`extreme events'). We study the large, internal changes produced in a…

Disordered Systems and Neural Networks · Physics 2009-11-07 D. Lamper , S. Howison , N. F. Johnson

Decisions taken in our everyday lives are based on a wide variety of information so it is generally very difficult to assess what are the strategies that guide us. Stock market therefore provides a rich environment to study how people take…

General Finance · Quantitative Finance 2016-09-28 Mario Gutiérrez-Roig , Carlota Segura , Jordi Duch , Josep Perelló

We study the asymptotic behavior of deterministic, continuous-time imitation dynamics for population games over networks. The basic assumption of this learning mechanism -- encompassing the replicator dynamics -- is that players belonging…

Systems and Control · Electrical Eng. & Systems 2020-10-23 Giacomo Como , Fabio Fagnani , Lorenzo Zino

We consider a version of the ultimatum game which simultaneously combines reactive and Darwinian aspects with offers in [0,1]. By reactive aspects, we consider the effects that lead the player to change their offer given the previous…

Physics and Society · Physics 2019-10-02 Roberto da Silva , Pablo Valverde , Luis C. Lamb

In this paper we address the cooperation problem in structured populations by considering the prisoner's dilemma game as metaphor of the social interactions between individuals with imitation capacity. We present a new strategy update rule…

Computer Science and Game Theory · Computer Science 2013-03-19 Ignacio Gomez Portillo

Unambiguous identification of the rewards driving behaviours of entities operating in complex open-ended real-world environments is difficult, partly because goals and associated behaviours emerge endogenously and are dynamically updated as…

Machine Learning · Computer Science 2024-05-03 Richard M. Bailey

Winner-take-all phenomena are observed in various competitive systems. We find similar phenomena in replicator models with randomly fluctuating growth rates. The disparity between winners and losers increases indefinitely, even if all…

Physics and Society · Physics 2016-03-23 Hidetsugu Sakaguchi

Evolutionary game dynamics is one of the most fruitful frameworks for studying evolution in different disciplines, from Biology to Economics. Within this context, the approach of choice for many researchers is the so-called replicator…

Populations and Evolution · Quantitative Biology 2009-11-14 Carlos P. Roca , José A. Cuesta , Angel Sánchez

The replicator equation in evolutionary game theory describes the change in a population's behaviors over time given suitable incentives. It arises when individuals make decisions using a simple learning process - imitation. A recent…

Computer Science and Game Theory · Computer Science 2023-11-07 Keith Paarporn

We examine the effects of memory and different updating paradigms in a game-theoretic model of competitive learning, where agents are influenced in their choice of strategy by both the choices made by, and the consequent success rates of,…

Physics and Society · Physics 2012-01-23 Ajaz Ahmad Bhat , Anita Mehta

Participants in socio-economic systems are often ranked based on their performance. Rankings conveniently reduce the complexity of such systems to ordered lists. Yet, it has been shown in many contexts that those who reach the top are not…

Physics and Society · Physics 2024-01-30 Federica De Domenico , Fabio Caccioli , Giacomo Livan , Guido Montagna , Oreste Nicrosini

Commitment devices are powerful tools that can influence and incentivise certain behaviours by linking them to rewards or punishments. These devices are particularly useful in decision-making, as they can steer individuals towards specific…

Computer Science and Game Theory · Computer Science 2023-12-11 Maria Alejandra Ramirez , Yoav Kolumbus , Rosemarie Nagel , David Wolpert , Jürgen Jost