Related papers: Strategic Ambiguity in Global Games
We introduce a way to compare actions in decision problems. One action is safer than another if the set of beliefs at which the decision-maker prefers the safer action expands as the decision-maker becomes more risk averse. We provide a…
This paper presents an empirical investigation of the relation between decision speed and decision quality for a real-world setting of cognitively-demanding decisions in which the timing of decisions is endogenous: professional chess.…
Equilibrium notions for games with unawareness in the literature cannot be interpreted as steady-states of a learning process because players may discover novel actions during play. In this sense, many games with unawareness are…
The transitivity of preferences is one of the basic assumptions used in the theory of games and decisions. It is often equated with rationality of choice and is considered useful in building rankings. Intransitive preferences are considered…
Let us consider two companies A and B. Both of them are interested in buying a set of some goods. The company A is a big corporation and it knows the actual value of the good on the market and is able to observe the previous values of them.…
We study the experimentation dynamics of a decision maker (DM) in a two-armed bandit setup (Bolton and Harris (1999)), where the agent holds ambiguous beliefs regarding the distribution of the return process of one arm and is certain about…
Decision making in modern large-scale and complex systems such as communication networks, smart electricity grids, and cyber-physical systems motivate novel game-theoretic approaches. This paper investigates big strategic (non-cooperative)…
Video game designers often view confusion as undesirable, yet it is inevitable, as new players must adapt to new interfaces and mechanics in an increasingly varied and innovative game market, which is more popular than ever. Research…
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…
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…
Classical results of Decision Theory, and its extension to a multi-agent setting: Game Theory, operate only at the associative level of information; this is, classical decision makers only take into account probabilities of events; we go…
In repeated games, such as auctions, players rely on autonomous learning agents to choose their actions. We study settings in which players have their agents make monetary transfers to other agents during play at their own expense, in order…
The explicit construction is presented of two-player game satisfying: (i) symmetry with respect to the permutation of the players; (ii) the existence of upper bound on total payoff following from Bell inequality; (iii) the existence of…
When users lack specific knowledge of various system parameters, their uncertainty may lead them to make undesirable deviations in their decision making. To alleviate this, an informed system operator may elect to signal information to…
We analyze how dynamic information should be provided to uniquely implement the largest equilibrium in binary-action coordination games. The designer offers an informational put: she stays silent if players choose her preferred action, but…
In this manuscript we explore the onset of cooperative traits in the Public Goods game. This well-known game involves N-agent interactions and thus reproduces a large number of social scenarios in which cooperation appears to be essential.…
We propose an extension of Strategy Logic (SL), in which one can both reason about strategizing under imperfect information and about players' knowledge. One original aspect of our approach is that we do not force strategies to be uniform,…
In the classical communication setting multiple senders having access to the same source of information and transmitting it over channel(s) to a receiver in general leads to a decrease in estimation error at the receiver as compared with…
Secure equilibrium is a refinement of Nash equilibrium, which provides some security to the players against deviations when a player changes his strategy to another best response strategy. The concept of secure equilibrium is specifically…
Mutual trust is a key determinant of decision-making in economic interactions, yet actual behavior often diverges from equilibrium predictions. This study investigates how emotional arousal, indexed by skin conductance responses,SCR,…