Related papers: Homo economicus to model human behavior is ethical…
In a society of multiple individuals, if everybody is only interested in maximizing his own payoff, will there exist any equilibrium for the society? John Nash proved more than 50 years ago that an equilibrium always exists such that nobody…
Despite all our great advances in science, technology and financial innovations, many societies today are struggling with a financial, economic and public spending crisis, over-regulation, and mass unemployment, as well as lack of…
The problem of quantification of emotions in the choice between alternatives is considered. The alternatives are evaluated in a dual manner. From one side, they are characterized by rational features defining the utility of each…
One common assumption in game theory is that any player optimizes a utility function that takes into account only its own payoff. However, it has long been observed that in real life players may adopt an altruistic or even spiteful…
We study interactions with uncertainty about demand sensitivity. In our solution concept (1) firms choose seemingly-optimal strategies given the level of sophistication of their data analytics, and (2) the levels of sophistication form best…
A recently introduced concept of "cooperative equilibrium", based on the assumption that players have a natural attitude to cooperation, has been proven a powerful tool in predicting human behaviour in social dilemmas. In this paper, we…
The fact that humans cooperate with non-kin in large groups, or with people they will never meet again, is a long-standing evolutionary puzzle with profound implications. Cooperation is linked to altruism, the capacity to perform costly…
With humans increasingly serving as computational elements in distributed information processing systems and in consideration of the profit-driven motives and potential inequities that might accompany the emerging thinking economy[1], we…
Machine Ethics decisions should consider the implications of uncertainty over decisions. Decisions should be made over sequences of actions to reach preferable outcomes long term. The evaluation of outcomes, however, may invoke one or more…
We provide simple models for the utility function (or psychology) of an actor trading a multitude of goods for money. In this framework, money has no intrinsic consumption value, but is required as a medium of exchange. A collection of such…
We consider a task of scheduling with a common deadline on a single machine. Every player reports to a scheduler the length of his job and the scheduler needs to finish as many jobs as possible by the deadline. For this simple problem,…
A neural network with a learning algorithm optimized by information theory entropic dynamics is used to build an agent dubbed Homo Entropicus. The algorithm can be described at a macroscopic level in terms of aggregate variables…
Standard economic theory uses mathematics as its main means of understanding, and this brings clarity of reasoning and logical power. But there is a drawback: algebraic mathematics restricts economic modeling to what can be expressed only…
Conventional game theory assumes that players are perfectly rational. In a realistic situation, however, players are rarely perfectly rational. This bounded rationality is one of the main reasons why the predictions of Nash equilibrium in…
Human cooperation depends on how accurately we infer others' motives--how much they value fairness, generosity, or self-interest from the choices they make. We model that process in binary dictator games, which isolate moral trade-offs…
Economic experiments offer a controlled setting for researchers to observe human decision-making and test diverse theories and hypotheses; however, substantial costs and efforts are incurred to gather many individuals as experimental…
In a society of completely selfish individuals where everybody is only interested in maximizing his own payoff, does any equilibrium exist for the society? John Nash proved more than 50 years ago that an equilibrium always exists such that…
Biological competition is widely believed to result in the evolution of selfish preferences. The related concept of the `homo economicus' is at the core of mainstream economics. However, there is also experimental and empirical evidence for…
The Internet and Social Media change our way of decision-making. We are no longer the independent decision makers we used to be. Instead, we have become networked minds, social decision-makers, more than ever before. This has several…
In many cases the Nash equilibria are not predictive of the experimental players' behaviour. For some games of Game Theory it is proposed here a method to estimate the probabilities with which the different options will be actually chosen…