Related papers: Homo economicus to model human behavior is ethical…
Algorithms for equilibrium computation generally make no attempt to ensure that the computed strategies are understandable by humans. For instance the strategies for the strongest poker agents are represented as massive binary files. In…
We investigate Kantian equilibria in finite normal form games, a class of non-Nashian, morally motivated courses of action that was recently proposed in the economics literature. We highlight a number of problems with such equilibria,…
Human decision behaviour is quite diverse. In many games humans on average do not achieve maximal payoff and the behaviour of individual players remains inhomogeneous even after playing many rounds. For instance, in repeated prisoner…
We introduce a set-valued solution concept, M equilibrium, to capture empirical regularities from over half a century of game-theory experiments. We show M equilibrium serves as a meta theory for various models that hitherto were considered…
Economists were content with the concept of the Nash equilibrium as game theory's solution concept until Daskalakis, Goldberg, and Papadimitriou showed that finding a Nash equilibrium is most likely a computationally hard problem, a result…
The applications of techniques from statistical (and classical) mechanics to model interesting problems in economics and finance has produced valuable results. The principal movement which has steered this research direction is known under…
We study the inefficiency of equilibria for various classes of games when players are (partially) altruistic. We model altruistic behavior by assuming that player i's perceived cost is a convex combination of 1-\alpha_i times his direct…
In applied game theory the motivation of players is a key element. It is encoded in the payoffs of the game form and often based on utility functions. But there are cases were formal descriptions in the form of a utility function do not…
This paper investigates the reality and accuracy of evolutionary game dynamics theory in human game behavior experiments. In classical game theory, the central concept is Nash equilibrium, which reality and accuracy has been well known…
The aim of this of this paper is to study infinite games and to prove formally some properties in this framework. As a consequence we show that the behavior (the madness) of people which leads to speculative crashes or escalation can be…
The appreciation and utilisation of risk and uncertainty can play a key role in helping to solve some of the many ethical issues that are posed by AI. Understanding the uncertainties can allow algorithms to make better decisions by…
We argue that newly-developed large language models (LLMs), because of how they are trained and designed, are implicit computational models of humans -- a Homo silicus. LLMs can be used like economists use Homo economicus: they can be given…
The enterprise of trying to explain different social and economic phenomena using concepts and ideas drawn from physics has a long history. Statistical mechanics, in particular, has been often seen as most likely to provide the means to…
In both finance and economics, quantitative models are usually studied as isolated mathematical objects --- most often defined by very strong simplifying assumptions concerning rationality, efficiency and the existence of disequilibrium…
Econometrics is based on the nonempiric notion of utility. Prices, dynamics, and market equilibria are supposed to be derived from utility. Utility is usually treated by economists as a price potential, other times utility rates are treated…
Is it rational for selfish individuals to cooperate? The conventional answer based on analysis of games such as the Prisoners Dilemma (PD) is that it is not, even though mutual cooperation results in a better outcome for all. This…
This paper develops a rigorous mathematical framework for egalitarian ethics by integrating formal tools from economics and mathematics. We motivate the formalism by investigating the limitations of conventional informal approaches by…
The quest of this work is to present discussions of some fundamental questions of economics in the era of quantum technology, which require a treatment different from economics studied thus far in the literature. A study of quantum economic…
Econometric inference allows an analyst to back out the values of agents in a mechanism from the rules of the mechanism and bids of the agents. This paper gives an algorithm to solve the problem of inferring the values of agents in a…
Policy and guideline proposals for ethical artificial-intelligence research have proliferated in recent years. These are supposed to guide the socially-responsible development of AI for the common good. However, there typically exist…