Related papers: Reputational Bargaining with Ultimatum Opportuniti…
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…
In the ultimatum game, the challenge is to explain why responders reject non-zero offers thereby defying classical rationality. Fairness and related notions have been the main explanations so far. We explain this rejection behavior via the…
Reputation mechanisms offer an effective alternative to verification authorities for building trust in electronic markets with moral hazard. Future clients guide their business decisions by considering the feedback from past transactions;…
I study reputation formation in repeated games where player actions endogenously determine the probability the game permanently ends. Permanent exit can render reputation useless even to a patient long-lived player whose actions are…
In the Ultimatum Game (UG) one player, named "proposer", has to decide how to allocate a certain amount of money between herself and a "responder". If the offer is greater than or equal to the responder's minimum acceptable offer (MAO),…
The Ultimatum Game is a famous sequential, two-player game intensely studied in Game Theory. A proposer can offer a certain fraction of some amount of a valuable good, for example, money. A responder can either accept, in which case the…
Spatial structure has a profound effect on the outcome of evolutionary games. In the ultimatum game, it leads to the dominance of much fairer players than those predicted to evolve in well-mixed settings. Here we show that spatiality leads…
Asymmetric evolutionary games, such as the Ultimatum Game, provide keys to understanding the emergence of fairness in social species. Building on this framework, we explore the evolution of social value systems and the operational role that…
We address the equilibrium concept of a reverse auction game so that no one can enhance the individual payoff by a unilateral change when all the others follow a certain strategy. In this approach the combinatorial possibilities to consider…
We study a model in which before a conflict between two parties escalates into a war (in the form of an all-pay auction), a party can offer a take-it-or-leave-it bribe to the other for a peaceful settlement. In contrast to the received…
We address the problem of how cooperative (altruistic-like) behavior arises in natural and social systems by analyzing an ultimatum game in complex networks. Specifically, three types of players are considered: (a) empathetic, whose…
Rating systems play a vital role in the exponential growth of service-oriented markets. As highly rated online services usually receive substantial revenue in the markets, malicious sellers seek to boost their service evaluation by…
To analyze strategic interactions arising in the cyber-security context, we develop a new reputation game model in which an attacker can pretend to be a normal user and a defender may have to announce attack detection at a certain point of…
I revisit the canonical reputation framework in which a long-lived player interacts with a sequence of short-lived opponents and may be either strategic or a commitment type who always plays the same, possibly mixed, action. I depart by…
A patient player privately observes a persistent state that directly affects his myopic opponents' payoffs, and can be one of the several commitment types that plays the same mixed action in every period. I characterize the set of…
Behavioral experiments on the ultimatum game (UG) reveal that we humans prefer fair acts, which contradicts the prediction made in orthodox Economics. Existing explanations, however, are mostly attributed to exogenous factors within the…
Creating incentives for cooperation is a challenge in natural and artificial systems. One potential answer is reputation, whereby agents trade the immediate cost of cooperation for the future benefits of having a good reputation. Game…
Experiments on the ultimatum game have revealed that humans are remarkably fond of fair play. When asked to share an amount of money, unfair offers are rare and their acceptance rate small. While empathy and spatiality may lead to the…
We propose a continuous-time nonlinear model of opinion dynamics with utility-maximizing agents connected via a social influence network. A distinguishing feature of the proposed model is the inclusion of an opinion-dependent…
Institutions and investors face the constant challenge of making accurate decisions and predictions regarding how best they should distribute their endowments. The problem of achieving an optimal outcome at minimal cost has been extensively…