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This paper examines the impact of cognitive biases on financial decision-making through a static Bayesian game framework. While traditional economic theory assumes fully rational investors, real-world choices are often shaped by loss…
An analysis of several important aspects of competition or conflict in games, social choice and decision theory is presented. Inherent difficulties and complexities in cooperation are highlighted. These have over the years led to a certain…
We develop a general game-theoretic framework for reasoning about strategic agents performing possibly costly computation. In this framework, many traditional game-theoretic results (such as the existence of a Nash equilibrium) no longer…
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),…
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,…
Mathematicians occasionally discover interesting truths even when they are playing with mathematical ideas with no thoughts about possible consequences of their actions. This paper describes two specific instances of this phenomenon. The…
Behavioural economics provides labels for patterns in human economic behaviour. Probability weighting is one such label. It expresses a mismatch between probabilities used in a formal model of a decision (i.e. model parameters) and…
In economics literature, it is accepted that all people are rational and they try to maximize their utilities as possible as they can. In addition, economic theories are formed with the assumptions not suitable to real life. For instance,…
We consider scenarios where a worker robot, who may be unaware of the human's exact expectations, may have the incentive to deviate from a preferred plan (e.g. safe but costly) when a human supervisor is not monitoring it. On the other…
We paraphrase Descartes' famous dictum in the area of AI ethics where the "I doubt and therefore I am" is suggested as a necessary aspect of morality. Therefore AI, which cannot doubt itself, cannot possess moral agency. Of course, this is…
In the diverse array of work investigating the nature of human values from psychology, philosophy and social sciences, there is a clear consensus that values guide behaviour. More recently, a recognition that values provide a means to…
In this communication, some economic models given by functional mappings are addressed. These are models for random markets where agents trade by pairs and exchange their money in a random and conservative way. They display the exponential…
A broad current application of algorithms is in formal and quantitative measures of murky concepts -- like merit -- to make decisions. When people strategically respond to these sorts of evaluations in order to gain favorable decision…
In complex systems, many different parts interact in non-obvious ways. Traditional research focuses on a few or a single aspect of the problem so as to analyze it with the tools available. To get a better insight of phenomena that emerge…
Emotion and fairness play a key role in mediating socioeconomic decisions in humans; however, the underlying neurocognitive mechanism remains largely unknown. This exploratory study unraveled the interplay between agents' emotions and the…
As large language models (LLMs) increasingly act as autonomous agents in markets and organizations, their behavior in strategic environments becomes economically consequential. We document that off-the-shelf LLM agents exhibit systematic…
Despite more than 50 years of human space exploration, no paper in the field of economics has been published regarding the theory of a space-based economy. The aim of this paper is to develop quantitative techniques to estimate conditions…
Understanding cooperation in social systems is challenging because the ever-changing rules that govern societies interact with individual actions, resulting in intricate collective outcomes. In virtual-world experiments, we allowed people…
Large language models (LLMs) are increasingly used to simulate human decision-making, but their intrinsic biases often diverge from real human behavior--limiting their ability to reflect population-level diversity. We address this challenge…
Public goods games study the incentives of individuals to contribute to a public good and their behaviors in equilibria. In this paper, we examine a specific type of public goods game where players are networked and each has binary actions,…