Related papers: Incentives and Strategic Behaviour: An Experiment

Economic experiments reveal that humans value cooperation and fairness. Punishing unfair behavior is therefore common, and according to the theory of strong reciprocity, it is also directly related to rewarding cooperative behavior.…

Many real-life decisions involve both perceptual processes and weighing the consequences of different actions. However, the neural mechanisms underlying perceptual decisions have typically been examined separately from those underlying…

Large language models excel on static benchmarks, but their ability as self-learning agents in dynamic environments remains unclear. We evaluate three prompting strategies: self-reflection, heuristic mutation, and planning across dynamic…

Groups coordinate more effectively when individuals are able to learn from others' successes. But acquiring such knowledge is not always easy, especially in real-world environments where success is hidden from public view. We suggest that…

Transparency and explainability are important features that responsible autonomous vehicles should possess, particularly when interacting with humans, and causal reasoning offers a strong basis to provide these qualities. However, even if…

Actor critic methods with sparse rewards in model-based deep reinforcement learning typically require a deterministic binary reward function that reflects only two possible outcomes: if, for each step, the goal has been achieved or not. Our…

Direct reciprocity is a mechanism for the evolution of cooperation based on repeated interactions. When individuals meet repeatedly, they can use conditional strategies to enforce cooperative outcomes that would not be feasible in one-shot…

The field of Artificial Intelligence (AI) is going through a period of great expectations, introducing a certain level of anxiety in research, business and also policy. This anxiety is further energised by an AI race narrative that makes…

Are rewards or penalties more effective in influencing user behavior? This work compares the effectiveness of subsidies and tolls in incentivizing users in congestion games. The predominantly studied method of influencing user behavior in…

Many experimental studies report that economics students tend to act more selfishly than students of other disciplines, a finding that received widespread public and professional attention. Two main explanations that the existing literature…

We introduce and study incentive equilibria for multi-player meanpayoff games. Incentive equilibria generalise well-studied solution concepts such as Nash equilibria and leader equilibria (also known as Stackelberg equilibria). Recall that…

Information sharing among organizations has been gaining attention as a method for improving cybersecurity. However, the associated disclosure costs act as deterrents for firms' voluntary cooperation. In this work, we take a game-theoretic…

Generative AI is quickly becoming an integral part of people's everyday workflows. Early evidence has shown that while generative AI can increase individual-level productivity, it does so at the cost of collective diversity, potentially…

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…

Inspired by the fact that people have diverse propensities to punish wrongdoers, we study a spatial public goods game with defectors and different types of punishing cooperators. During the game, cooperators punish defectors with…

This paper presents a novel approach to analyze human decision-making that involves comparing the behavior of professional chess players relative to a computational benchmark of cognitively bounded rationality. This benchmark is constructed…

Equipping agents with the capacity to justify made decisions using supporting evidence represents a cornerstone of accountable decision-making. Furthermore, ensuring that justifications are in line with human expectations and societal norms…

Governments and enterprises strongly rely on incentives to generate favorable outcomes from social and strategic interactions between individuals. The incentives are usually modeled by payoffs in evolutionary games, such as the prisoner's…

In dynamic noncooperative games, each player makes conjectures about other players' reactions before choosing a strategy. However, resulting equilibria may be multiple and do not always lead to desirable outcomes. These issues are typically…

Introducing environmental feedback into evolutionary game theory has led to the development of eco-evolutionary games, which have gained popularity due to their ability to capture the intricate interplay between the environment and…