Walras-Bowley Lecture 2003 (extended)
|
|
- Erick Casey
- 5 years ago
- Views:
Transcription
1 Walras-Bowley Lecture 2003 (extended) Sergiu Hart This version: November 2005 SERGIU HART c 2005 p. 1
2 ADAPTIVE HEURISTICS A Little Rationality Goes a Long Way Sergiu Hart Center for Rationality, Dept. of Economics, Dept. of Mathematics The Hebrew University of Jerusalem SERGIU HART c 2005 p. 2
3 Most of this talk is based on joint work with Andreu Mas-Colell (Universitat Pompeu Fabra, Barcelona) SERGIU HART c 2005 p. 3
4 Most of this talk is based on joint work with Andreu Mas-Colell (Universitat Pompeu Fabra, Barcelona) All papers and this presentation are available on my home page SERGIU HART c 2005 p. 3
5 Papers SERGIU HART c 2005 p. 4
6 Papers Econometrica (2000) Journal of Economic Theory (2001) Economic Essays (2001) Games and Economic Behavior (2003) American Economic Review (2003) Econometrica (2005) SERGIU HART c 2005 p. 4
7 PART I Introduction: Dynamics SERGIU HART c 2005 p. 5
8 Dynamics SERGIU HART c 2005 p. 6
9 Dynamics Learning SERGIU HART c 2005 p. 6
10 Dynamics Learning START: prior beliefs STEP: observe update (Bayes) optimize (best-reply) REPEAT SERGIU HART c 2005 p. 6
11 Dynamics Evolution SERGIU HART c 2005 p. 7
12 Dynamics Evolution populations each individual fixed action ( gene ) frequencies of each action in the population mixed strategy SERGIU HART c 2005 p. 7
13 Dynamics Evolution populations each individual fixed action ( gene ) frequencies of each action in the population mixed strategy Change: Selection higher payoff higher frequency Mutation random and relatively rare SERGIU HART c 2005 p. 7
14 Dynamics Adaptive Heuristics SERGIU HART c 2005 p. 8
15 Dynamics Adaptive Heuristics rules of thumb myopic simple stimulus response, reinforcement behavioral, experiments non-bayesian SERGIU HART c 2005 p. 8
16 Dynamics Adaptive Heuristics rules of thumb myopic simple stimulus response, reinforcement behavioral, experiments non-bayesian Example: Fictitious Play SERGIU HART c 2005 p. 8
17 Dynamics Adaptive Heuristics rules of thumb myopic simple stimulus response, reinforcement behavioral, experiments non-bayesian Example: Fictitious Play (Play optimally against the empirical distribution of past play of the other player) SERGIU HART c 2005 p. 8
18 ?. jevolution. jheuristics. Learning? SERGIU HART c 2005 p. 9
19 Rationality. jevolution. jheuristics. Learning Rationality SERGIU HART c 2005 p. 9
20 Rationality. jevolution. jheuristics. Learning Rationality most of this talk SERGIU HART c 2005 p. 9
21 Can simple adaptive heuristics lead to sophisticated rational behavior? SERGIU HART c 2005 p. 10
22 Game N-person game in strategic (normal) form Players i = 1, 2,..., N SERGIU HART c 2005 p. 11
23 Game N-person game in strategic (normal) form Players i = 1, 2,..., N For each player i: Actions a i in A i SERGIU HART c 2005 p. 11
24 Game N-person game in strategic (normal) form Players i = 1, 2,..., N For each player i: Actions a i in A i For each player i: Payoffs (utilities) u i (a) u i (a 1, a 2,..., a N ) SERGIU HART c 2005 p. 11
25 Dynamics Dynamics Time t = 1, 2,... SERGIU HART c 2005 p. 12
26 Dynamics Dynamics Time t = 1, 2,... At time t each player i chooses an action a i t in A i SERGIU HART c 2005 p. 12
27 PART II Regret Matching SERGIU HART c 2005 p. 13
28 Advertisement DON T YOU FEEL A PANG OF REGRET? 47.15% YIELD 47.15% January May % 4.43% XYZ Nasdaq Dow Jones Don t wait! Ask your broker today Haaretz June 3, 2003 SERGIU HART c 2005 p. 14
29 Regret Matching REGRET MATCHING = Switch next period to a different action with a probability that is proportional to the regret for that action SERGIU HART c 2005 p. 15
30 Regret Matching REGRET MATCHING = Switch next period to a different action with a probability that is proportional to the regret for that action REGRET = increase in payoff had such a change always been made in the past SERGIU HART c 2005 p. 15
31 Regret U = average payoff up to now SERGIU HART c 2005 p. 16
32 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played SERGIU HART c 2005 p. 16
33 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played R(k) = [V (k) U] + = regret for action k SERGIU HART c 2005 p. 16
34 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played R(k) = [V (k) U] + = regret for action k R(k) R i T (j k) = [ 1 T ) t T : a (u ] it = j i (k, a i t ) u i (a t ) + SERGIU HART c 2005 p. 16
35 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played R(k) = [V (k) U] + = regret for action k R(k) R i T (j k) = [ 1 T ) t T : a (u ] it = j i (k, a i t ) u i (a t ) + SERGIU HART c 2005 p. 16
36 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played R(k) = [V (k) U] + = regret for action k R(k) R i T (j k) = [ 1 T ) t T : a (u ] it = j i (k, a i t ) u i (a t ) + SERGIU HART c 2005 p. 16
37 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played R(k) = [V (k) U] + = regret for action k R(k) R i T (j k) = [ 1 T ) t T : a (u ] it = j i (k, a i t ) u i (a t ) + SERGIU HART c 2005 p. 16
38 Regret U = average payoff up to now V (k) = average payoff if action k had been played instead of the current action j every time in the past that j was played R(k) = [V (k) U] + = regret for action k R(k) R i T (j k) = [ 1 T ) t T : a (u ] it = j i (k, a i t ) u i (a t ) + SERGIU HART c 2005 p. 16
39 Regret Matching Next period play: Switch to action k with a probability that is proportional to the regret R(k) (for k j) SERGIU HART c 2005 p. 17
40 Regret Matching Next period play: Switch to action k with a probability that is proportional to the regret R(k) (for k j) Play the same action j of last period with the remaining probability SERGIU HART c 2005 p. 17
41 Regret Matching Next period play: Switch to action k with a probability that is proportional to the regret R(k) (for k j) Play the same action j of last period with the remaining probability σ(k) σ i T+1 (k) = cr(k), for k j σ(j) σ i T+1 (j) = 1 k j cr(k) SERGIU HART c 2005 p. 17
42 Regret Matching Next period play: Switch to action k with a probability that is proportional to the regret R(k) (for k j) Play the same action j of last period with the remaining probability σ(k) σ i T+1 (k) = cr(k), for k j σ(j) σ i T+1 (j) = 1 k j cr(k) c = a fixed positive constant (so that the probability of not switching is > 0) SERGIU HART c 2005 p. 17
43 Regret Matching Theorem Theorem If all players play Regret Matching then the joint distribution of play converges to the set of CORRELATED EQUILIBRIA of the game SERGIU HART c 2005 p. 18
44 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T SERGIU HART c 2005 p. 19
45 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T SERGIU HART c 2005 p. 19
46 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T T = 1 SERGIU HART c 2005 p. 19
47 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T T = z 1 SERGIU HART c 2005 p. 19
48 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T T = /2 1/2 0 0 z 2 SERGIU HART c 2005 p. 19
49 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T T = /3 1/3 0 0 z 3 SERGIU HART c 2005 p. 19
50 Joint Distribution of Play Joint distribution of play z T = The relative frequencies that the N-tuples of actions have been played up to time T T = 10 3/10 0 2/10 1/10 3/10 1/10 z 10 SERGIU HART c 2005 p. 19
51 Joint Distribution of Play Note 1: The fact that the players randomize independently at each period does not imply that the joint distribution is independent! T = 10 3/10 0 2/10 1/10 3/10 1/10 z 10 SERGIU HART c 2005 p. 19
52 Joint Distribution of Play Note 1: The fact that the players randomize independently at each period does not imply that the joint distribution is independent! Note 2: Players observe the joint distribution (the history of play) SERGIU HART c 2005 p. 19
53 Joint Distribution of Play Note 1: The fact that the players randomize independently at each period does not imply that the joint distribution is independent! Note 2: Players observe the joint distribution (the history of play) Note 3: Players react to the joint distribution (patterns, coincidences, communication, signals,...) SERGIU HART c 2005 p. 19
54 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) SERGIU HART c 2005 p. 20
55 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: SERGIU HART c 2005 p. 20
56 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals SERGIU HART c 2005 p. 20
57 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals Nash equilibrium SERGIU HART c 2005 p. 20
58 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals Nash equilibrium Public signals ( sunspots ) SERGIU HART c 2005 p. 20
59 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals Nash equilibrium Public signals ( sunspots ) convex combinations of Nash equilibria SERGIU HART c 2005 p. 20
60 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals Nash equilibrium Public signals ( sunspots ) convex combinations of Nash equilibria Butterflies play the Chicken Game ( Speckled Wood Pararge aegeria) SERGIU HART c 2005 p. 20
61 Correlated Equilibria "Chicken" game LEAVE STAY LEAVE 5, 5 3, 6 STAY 6, 3 0, 0 SERGIU HART c 2005 p. 21
62 Correlated Equilibria "Chicken" game LEAVE STAY LEAVE 5, 5 3, 6 STAY 6, 3 0, 0 a Nash equilibrium SERGIU HART c 2005 p. 21
63 Correlated Equilibria "Chicken" game LEAVE STAY LEAVE 5, 5 3, 6 STAY 6, 3 0, 0 another Nash equilibriumi SERGIU HART c 2005 p. 21
64 Correlated Equilibria "Chicken" game LEAVE STAY LEAVE 5, 5 3, 6 STAY 6, 3 0, 0 L 0 1/2 1/2 0 a (publicly) correlated equilibrium SERGIU HART c 2005 p. 21
65 Correlated Equilibria "Chicken" game LEAVE STAY LEAVE 5, 5 3, 6 STAY 6, 3 0, 0 L S L 1/3 1/3 S 1/3 0 another correlated equilibrium after signal L play LEAVE after signal S play STAY SERGIU HART c 2005 p. 21
66 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals Nash equilibrium Public signals ( sunspots ) convex combinations of Nash equilibria Butterflies play the Chicken Game ( Speckled Wood Pararge aegeria) SERGIU HART c 2005 p. 22
67 Correlated Equilibrium A Correlated Equilibrium is a Nash equilibrium when the players receive payoff-irrelevant signals before playing the game (Aumann 1974) Examples: Independent signals Nash equilibrium Public signals ( sunspots ) convex combinations of Nash equilibria Butterflies play the Chicken Game ( Speckled Wood Pararge aegeria) Boston Celtics front line SERGIU HART c 2005 p. 22
68 Correlated Equilibrium Signals (public, correlated) are unavoidable SERGIU HART c 2005 p. 23
69 Correlated Equilibrium Signals (public, correlated) are unavoidable Common Knowledge of Rationality Correlated Equilibrium (Aumann 1987) SERGIU HART c 2005 p. 23
70 Correlated Equilibrium Signals (public, correlated) are unavoidable Common Knowledge of Rationality Correlated Equilibrium (Aumann 1987) A joint distribution z is a correlated equilibrium u(j, s i )z(j, s i ) u(k, s i )z(j, s i ) s i s i for all i N and all j, k S i SERGIU HART c 2005 p. 23
71 Regret Matching Theorem [recall] Theorem If all players play Regret Matching then the joint distribution of play converges to the set of CORRELATED EQUILIBRIA of the game SERGIU HART c 2005 p. 24
72 Regret Matching Theorem CE = set of correlated equilibria z T = joint distribution of play up to time T distance(z T, CE) 0 as T (a.s.) SERGIU HART c 2005 p. 25
73 Regret Matching Theorem CE = set of correlated equilibria z T = joint distribution of play up to time T distance(z T, CE) 0 as T (a.s.) z T is approximately a correlated equilibrium (or z T is a correlated approximate equilibrium) from some time on (for all large enough T ) SERGIU HART c 2005 p. 25
74 Regret Matching Theorem Proof z T is a correlated equilibrium there is no regret: RT i (j k) = 0 for all players and all actions SERGIU HART c 2005 p. 26
75 Regret Matching Theorem Proof z T is a correlated equilibrium there is no regret: RT i (j k) = 0 for all players and all actions Regret Matching all regrets converge to 0 (Proof: Blackwell Approachability for the vector of regrets + approximate eigenvector probabilities by transition probabilities) SERGIU HART c 2005 p. 26
76 Regret Matching Theorem Proof z T is a correlated equilibrium there is no regret: RT i (j k) = 0 for all players and all actions Regret Matching all regrets converge to 0 (Proof: Blackwell Approachability for the vector of regrets + approximate eigenvector probabilities by transition probabilities) Note: z T converges to the set CE, not to a point SERGIU HART c 2005 p. 26
77 Approachability Approachability Setup: Payoffs are m-dimensional vectors (in R m ) Repeated game SERGIU HART c 2005 p. 27
78 Approachability Approachability Setup: Payoffs are m-dimensional vectors (in R m ) Repeated game Player i Other players ( i) ( ) ( ) ( ) ( ) ( ) ( ) (m = 2) SERGIU HART c 2005 p. 27
79 Approachability Theorem 1 Let H R m be a half-space. Then: SERGIU HART c 2005 p. 28
80 Approachability Theorem 1 Let H R m be a half-space. Then: Player i can guarantee that the long-run average payoff converges to H SERGIU HART c 2005 p. 28
81 Approachability Theorem 1 Let H R m be a half-space. Then: Player i can guarantee that the long-run average payoff converges to H Player i can guarantee that the one-shot payoff lies in H SERGIU HART c 2005 p. 28
82 Approachability Theorem 1 Let H R m be a half-space. Then: Player i can guarantee that the long-run average payoff converges to H H is APPROACHABLE Player i can guarantee that the one-shot payoff lies in H SERGIU HART c 2005 p. 28
83 Approachability Theorem 1 Let H R m be a half-space. Then: Player i can guarantee that the long-run average payoff converges to H H is APPROACHABLE Player i can guarantee that the one-shot payoff lies in H H is ENFORCEABLE SERGIU HART c 2005 p. 28
84 Approachability Theorem 1 Let H R m be a half-space. Then: Player i can guarantee that the long-run average payoff converges to H H is APPROACHABLE Player i can guarantee that the one-shot payoff lies in H H is ENFORCEABLE Proof: Real payoffs (m = 1): Minimax Theorem + Law of Large Numbers SERGIU HART c 2005 p. 28
85 Approachability Theorem 2 Let C R m be a convex set. Then: SERGIU HART c 2005 p. 29
86 Approachability Theorem 2 Let C R m be a convex set. Then: Player i can guarantee that the long-run average payoff converges to C SERGIU HART c 2005 p. 29
87 Approachability Theorem 2 Let C R m be a convex set. Then: Player i can guarantee that the long-run average payoff converges to C C is APPROACHABLE SERGIU HART c 2005 p. 29
88 Approachability Theorem 2 Let C R m be a convex set. Then: Player i can guarantee that the long-run average payoff converges to C C is APPROACHABLE Every half-space H that contains C is approachable SERGIU HART c 2005 p. 29
89 Approachability Theorem 2 Let C R m be a convex set. Then: Player i can guarantee that the long-run average payoff converges to C C is APPROACHABLE Every half-space H that contains C is approachable Every half-space H that contains C is enforceable SERGIU HART c 2005 p. 29
90 Approachability C SERGIU HART c 2005 p. 30
91 Approachability C H SERGIU HART c 2005 p. 30
92 Approachability C H SERGIU HART c 2005 p. 30
93 Approachability C H H SERGIU HART c 2005 p. 30
94 Approachability C H H SERGIU HART c 2005 p. 30
95 Approachability H C H H SERGIU HART c 2005 p. 30
96 Approachability H C H H SERGIU HART c 2005 p. 30
97 Approachability H H C H H SERGIU HART c 2005 p. 30
98 Approachability H H C H H SERGIU HART c 2005 p. 30
99 Approachability C SERGIU HART c 2005 p. 31
100 Approachability C SERGIU HART c 2005 p. 31
101 Approachability C SERGIU HART c 2005 p. 31
102 Approachability C SERGIU HART c 2005 p. 31
103 Approachability C SERGIU HART c 2005 p. 31
104 Approachability C SERGIU HART c 2005 p. 31
105 Approachability C SERGIU HART c 2005 p. 31
106 Approachability C SERGIU HART c 2005 p. 31
107 Approachability C SERGIU HART c 2005 p. 31
108 Approachability C SERGIU HART c 2005 p. 31
109 Approachability C SERGIU HART c 2005 p. 31
110 Approachability C SERGIU HART c 2005 p. 31
111 Approachability C SERGIU HART c 2005 p. 31
112 Approachability C SERGIU HART c 2005 p. 31
113 Approachability C SERGIU HART c 2005 p. 31
114 Approachability C SERGIU HART c 2005 p. 31
115 Approachability C SERGIU HART c 2005 p. 31
116 Approachability C SERGIU HART c 2005 p. 31
117 Approachability C SERGIU HART c 2005 p. 31
118 Approachability C SERGIU HART c 2005 p. 31
119 Approachability C SERGIU HART c 2005 p. 31
120 Approachability C SERGIU HART c 2005 p. 31
121 Approachability C SERGIU HART c 2005 p. 31
122 Approachability C SERGIU HART c 2005 p. 31
123 Approachability C SERGIU HART c 2005 p. 31
124 Approachability C SERGIU HART c 2005 p. 31
125 Approachability C SERGIU HART c 2005 p. 31
126 Approachability C SERGIU HART c 2005 p. 31
127 Approachability C SERGIU HART c 2005 p. 31
128 Approachability C SERGIU HART c 2005 p. 31
129 Approachability C SERGIU HART c 2005 p. 31
130 Approachability C SERGIU HART c 2005 p. 31
131 Approachability C SERGIU HART c 2005 p. 31
132 Approachability C SERGIU HART c 2005 p. 31
133 Approachability C SERGIU HART c 2005 p. 31
134 Approachability C SERGIU HART c 2005 p. 31
135 Approachability C SERGIU HART c 2005 p. 31
136 Approachability C SERGIU HART c 2005 p. 31
137 Approachability C SERGIU HART c 2005 p. 31
138 Approachability C SERGIU HART c 2005 p. 31
139 Approachability C SERGIU HART c 2005 p. 31
140 Approachability C SERGIU HART c 2005 p. 31
141 Approachability Note: The intersection of approachable sets need not be an approachable set. SERGIU HART c 2005 p. 32
142 Approachability Note: The intersection of approachable sets need not be an approachable set. ( 1 0 ) ( 0 1 ) SERGIU HART c 2005 p. 32
143 Approachability Note: The intersection of approachable sets need not be an approachable set. ( 1 0 ) ( 0 1 ) But: If all half-spaces containing C are approachable, then their intersection (= C) is approachable. SERGIU HART c 2005 p. 32
144 Remarks Correlating device: the history of play SERGIU HART c 2005 p. 33
145 Remarks Correlating device: the history of play Other procedures leading to correlated equilibria: Foster Vohra 1997 Calibrated Learning: best-reply to calibrated forecasts Fudenberg Levine 1999 Conditional Smooth Fictitious Play Eigenvector strategy SERGIU HART c 2005 p. 33
146 Remarks Correlating device: the history of play Other procedures leading to correlated equilibria: Foster Vohra 1997 Calibrated Learning: best-reply to calibrated forecasts Fudenberg Levine 1999 Conditional Smooth Fictitious Play Eigenvector strategy Not heuristics! SERGIU HART c 2005 p. 33
147 Behavioral Aspects Behavioral aspects of Regret Matching: SERGIU HART c 2005 p. 34
148 Behavioral Aspects Behavioral aspects of Regret Matching: Commonly used rules of behavior SERGIU HART c 2005 p. 34
149 Behavioral Aspects Behavioral aspects of Regret Matching: Commonly used rules of behavior Never change a winning team SERGIU HART c 2005 p. 34
150 Behavioral Aspects Behavioral aspects of Regret Matching: Commonly used rules of behavior Never change a winning team The higher would have been the payoff from another action the higher the tendency to switch to it SERGIU HART c 2005 p. 34
151 Behavioral Aspects Behavioral aspects of Regret Matching: Commonly used rules of behavior Never change a winning team The higher would have been the payoff from another action the higher the tendency to switch to it Small probability of switching (the status quo bias") SERGIU HART c 2005 p. 34
152 Behavioral Aspects Behavioral aspects of Regret Matching: Commonly used rules of behavior Never change a winning team The higher would have been the payoff from another action the higher the tendency to switch to it Small probability of switching (the status quo bias") Stimulus-response, reinforcement SERGIU HART c 2005 p. 34
153 Behavioral Aspects Behavioral aspects of Regret Matching: Commonly used rules of behavior Never change a winning team The higher would have been the payoff from another action the higher the tendency to switch to it Small probability of switching (the status quo bias") Stimulus-response, reinforcement No beliefs (defined directly on actions) No best-reply (better-reply?) SERGIU HART c 2005 p. 34
154 Behavioral Aspects Similar to models of learning, experimental and behavioral economics: SERGIU HART c 2005 p. 35
155 Behavioral Aspects Similar to models of learning, experimental and behavioral economics: Bush Mosteller 1955 Erev Roth 1995, 1998 Camerer Ho 1997, 1998, SERGIU HART c 2005 p. 35
156 Behavioral Aspects Similar to models of learning, experimental and behavioral economics: Bush Mosteller 1955 Erev Roth 1995, 1998 Camerer Ho 1997, 1998, SERGIU HART c 2005 p. 35
157 Behavioral Aspects Similar to models of learning, experimental and behavioral economics: Bush Mosteller 1955 Erev Roth 1995, 1998 Camerer Ho 1997, 1998, N. Camille et al, The Involvement of the Orbitofrontal Cortex in the Experience of Regret Science May 2004 (304: ) SERGIU HART c 2005 p. 35
158 PART III Generalized Regret Matching SERGIU HART c 2005 p. 36
159 Questions How special is Regret Matching? SERGIU HART c 2005 p. 37
160 Questions How special is Regret Matching? Why does conditional smooth fictitious play work? SERGIU HART c 2005 p. 37
161 Questions How special is Regret Matching? Why does conditional smooth fictitious play work? Any connections? SERGIU HART c 2005 p. 37
162 Generalized Regret Matching Regret Matching = Switching probabilities are proportional to the regrets: σ(k) = cr(k) SERGIU HART c 2005 p. 38
163 Generalized Regret Matching Regret Matching = Switching probabilities are proportional to the regrets: σ(k) = cr(k) Generalized Regret Matching = Switching probabilities are a function of the regrets: σ(k) = f(r(k)) SERGIU HART c 2005 p. 38
164 Generalized Regret Matching Regret Matching = Switching probabilities are proportional to the regrets: σ(k) = cr(k) Generalized Regret Matching = Switching probabilities are a function of the regrets: σ(k) = f(r(k)) f is a sign-preserving function: f(0) = 0, and x > 0 f(x) > 0 f is a Lipschitz continuous function (in fact, much more general: f k,j, potential) SERGIU HART c 2005 p. 38
165 Generalized Regret Matching Theorem If all players play Generalized Regret Matching then the joint distribution of play converges to the set of correlated equilibria of the game SERGIU HART c 2005 p. 39
166 Generalized Regret Matching Theorem If all players play Generalized Regret Matching then the joint distribution of play converges to the set of correlated equilibria of the game Proof: Universal approachability strategies + Amotz Cahn, M.Sc. thesis, 2000 SERGIU HART c 2005 p. 39
167 Special Cases Play probabilities proportional to the m-th power of the regrets (f(x) = cx m, for m 1) SERGIU HART c 2005 p. 40
168 Special Cases Play probabilities proportional to the m-th power of the regrets (f(x) = cx m, for m 1) m = 1: Regret Matching SERGIU HART c 2005 p. 40
169 Special Cases Play probabilities proportional to the m-th power of the regrets (f(x) = cx m, for m 1) m = 1: Regret Matching m = : Positive probability only to actions with maximal regret SERGIU HART c 2005 p. 40
170 Special Cases Play probabilities proportional to the m-th power of the regrets (f(x) = cx m, for m 1) m = 1: Regret Matching m = : Positive probability only to actions with maximal regret Conditional Fictitious Play SERGIU HART c 2005 p. 40
171 Special Cases Play probabilities proportional to the m-th power of the regrets (f(x) = cx m, for m 1) m = 1: Regret Matching m = : Positive probability only to actions with maximal regret Conditional Fictitious Play But: Not continuous SERGIU HART c 2005 p. 40
172 Special Cases Play probabilities proportional to the m-th power of the regrets (f(x) = cx m, for m 1) m = 1: Regret Matching m = : Positive probability only to actions with maximal regret Conditional Fictitious Play But: Not continuous Therefore: Smooth Conditional Fictitious Play SERGIU HART c 2005 p. 40
173 PART IV Unknown Game SERGIU HART c 2005 p. 41
174 Unknown Game The case of the Unknown game : The player knows only Its own set of actions Its own past actions and payoffs SERGIU HART c 2005 p. 42
175 Unknown Game The case of the Unknown game : The player knows only Its own set of actions Its own past actions and payoffs The player does not know the game (other players, actions, payoff functions, history of other players actions and payoffs) SERGIU HART c 2005 p. 42
176 Proxy Regret Unknown game Unknown regret (The player does not know what the payoff would have been if he had played a different action k) SERGIU HART c 2005 p. 43
177 Proxy Regret Unknown game Unknown regret (The player does not know what the payoff would have been if he had played a different action k) Proxy Regret for k: Use the payoffs received when k has been actually played in the past SERGIU HART c 2005 p. 43
178 Proxy Regret Unknown game Unknown regret (The player does not know what the payoff would have been if he had played a different action k) Proxy Regret for k: Use the payoffs received when k has been actually played in the past Theorem. If all players play strategies based on proxy regret, then the joint distribution of play converges to the set of correlated equilibria of the game SERGIU HART c 2005 p. 43
179 PART V Uncoupled Dynamics SERGIU HART c 2005 p. 44
180 Nash Equilibrium Question: Adaptive heuristics Nash equilibria? SERGIU HART c 2005 p. 45
181 Nash Equilibrium Question: Adaptive heuristics Nash equilibria? In SPECIAL classes of games: YES SERGIU HART c 2005 p. 45
182 Nash Equilibrium Question: Adaptive heuristics Nash equilibria? In SPECIAL classes of games: YES Fictitious play, Regret-based,... Two-person zero-sum games Two-person potential games Supermodular games... SERGIU HART c 2005 p. 45
183 Nash Equilibrium Question: Adaptive heuristics Nash equilibria? In SPECIAL classes of games: YES Fictitious play, Regret-based,... Two-person zero-sum games Two-person potential games Supermodular games... In GENERAL games: NO SERGIU HART c 2005 p. 45
184 Nash Equilibrium Question: Adaptive heuristics Nash equilibria? In SPECIAL classes of games: YES Fictitious play, Regret-based,... Two-person zero-sum games Two-person potential games Supermodular games... In GENERAL games: NO WHY? SERGIU HART c 2005 p. 45
185 Uncoupled Dynamics General dynamic for 2-person games: ẋ(t) = F ( x(t), y(t) ; u 1, u 2 ) ẏ(t) = G ( x(t), y(t) ; u 1, u 2 ) x(t) (A 1 ), y(t) (A 2 ) SERGIU HART c 2005 p. 46
186 Uncoupled Dynamics General dynamic for 2-person games: ẋ(t) = F ( x(t), y(t) ; u 1, u 2 ) ẏ(t) = G ( x(t), y(t) ; u 1, u 2 ) Uncoupled dynamic: ẋ(t) = F ( x(t), y(t) ; u 1 ) ẏ(t) = G ( x(t), y(t) ; u 2 ) x(t) (A 1 ), y(t) (A 2 ) SERGIU HART c 2005 p. 46
187 Uncoupled Dynamics Adaptive ( rational ) dynamics (best-reply, better-reply, payoff-improving, monotonic, fictitious play, regret-based, replicator dynamics,...) are uncoupled SERGIU HART c 2005 p. 47
188 Uncoupled Dynamics Adaptive ( rational ) dynamics (best-reply, better-reply, payoff-improving, monotonic, fictitious play, regret-based, replicator dynamics,...) are uncoupled Uncoupledness is a natural informational condition SERGIU HART c 2005 p. 47
189 Nash-Convergent Dynamics Consider a family of games, each having a unique Nash equilibrium (no coordination problems ) SERGIU HART c 2005 p. 48
190 Nash-Convergent Dynamics Consider a family of games, each having a unique Nash equilibrium (no coordination problems ) A dynamic is Nash-convergent if it always converges to the unique Nash equilibrium Regularity conditions: The unique Nash equilibrium is a stable rest-point of the dynamic SERGIU HART c 2005 p. 48
191 Impossibility There exist no uncoupled dynamics which guarantee Nash convergence SERGIU HART c 2005 p. 49
192 Impossibility There exist no uncoupled dynamics which guarantee Nash convergence There are simple families of games whose unique Nash equilibrium is unstable for every uncoupled dynamic SERGIU HART c 2005 p. 49
193 Impossibility Adaptive ( rational ) dynamics (best-reply, better-reply, payoff-improving, monotonic, fictitious play, regret-based, replicator dynamics,...) are uncoupled SERGIU HART c 2005 p. 50
194 Impossibility Adaptive ( rational ) dynamics (best-reply, better-reply, payoff-improving, monotonic, fictitious play, regret-based, replicator dynamics,...) are uncoupled cannot always converge to Nash equilibria SERGIU HART c 2005 p. 50
195 Nash vs Correlated Correlated equilibria Uncoupled dynamics SERGIU HART c 2005 p. 51
196 Nash vs Correlated Correlated equilibria Uncoupled dynamics Nash equilibria Coupled dynamics SERGIU HART c 2005 p. 51
197 Nash vs Correlated Correlated equilibria Uncoupled dynamics Nash equilibria Coupled dynamics Law of Conservation of Coordination There must be coordination either in the equilibrium concept or in the dynamic SERGIU HART c 2005 p. 51
198 Summary SERGIU HART c 2005 p. 52
199 Where Do We Go From Here? SERGIU HART c 2005 p. 53
200 Where Do We Go From Here? Dynamics and equilibria Which equilibria? Which dynamics? SERGIU HART c 2005 p. 53
201 Where Do We Go From Here? Dynamics and equilibria Which equilibria? Which dynamics? Correlated equilibria: theory and practice Coordination Communication Bounded complexity SERGIU HART c 2005 p. 53
202 Where Do We Go From Here? Dynamics and equilibria Which equilibria? Which dynamics? Correlated equilibria: theory and practice Coordination Communication Bounded complexity Experiments, empirics Theory SERGIU HART c 2005 p. 53
203 Where Do We Go From Here? Dynamics and equilibria Which equilibria? Which dynamics? Correlated equilibria: theory and practice Coordination Communication Bounded complexity Experiments, empirics Theory Joint distribution of play (instead of just the marginals) SERGIU HART c 2005 p. 53
204 Summary SERGIU HART c 2005 p. 54
205 Summary Therejis a simple adaptive heuristic always leading to correlated equilibria SERGIU HART c 2005 p. 54
206 Summary Therejis a simple adaptive heuristic always leading to correlated equilibria (Regret Matching) SERGIU HART c 2005 p. 54
207 Summary Therejis a simple adaptive heuristic always leading to correlated equilibria (Regret Matching) There are many adaptive heuristics always leading to correlated equilibria SERGIU HART c 2005 p. 54
208 Summary Therejis a simple adaptive heuristic always leading to correlated equilibria (Regret Matching) There are many adaptive heuristics always leading to correlated equilibria (Generalized Regret Matching) SERGIU HART c 2005 p. 54
209 Summary Therejis a simple adaptive heuristic always leading to correlated equilibria (Regret Matching) There are many adaptive heuristics always leading to correlated equilibria (Generalized Regret Matching) There can be jno adaptive heuristics always leading to Nash equilibria SERGIU HART c 2005 p. 54
210 Summary Therejis a simple adaptive heuristic always leading to correlated equilibria (Regret Matching) There are many adaptive heuristics always leading to correlated equilibria (Generalized Regret Matching) There can be jno adaptive heuristics always leading to Nash equilibria (Uncoupledness) SERGIU HART c 2005 p. 54
211 Summary ADAPTIVE HEURISTICS SERGIU HART c 2005 p. 55
212 Summary BEHAVIORAL ADAPTIVE HEURISTICS SERGIU HART c 2005 p. 55
213 Summary BEHAVIORAL ADAPTIVE HEURISTICS CORRELATED EQUILIBRIA SERGIU HART c 2005 p. 55
214 Summary BEHAVIORAL ADAPTIVE HEURISTICS CORRELATED EQUILIBRIA Regret Matching SERGIU HART c 2005 p. 55
215 Summary BEHAVIORAL ADAPTIVE HEURISTICS CORRELATED EQUILIBRIA Generalized Regret Matching SERGIU HART c 2005 p. 55
216 Summary BEHAVIORAL ADAPTIVE HEURISTICS CORRELATED EQUILIBRIA Uncoupledness SERGIU HART c 2005 p. 55
217 Question Can simple adaptive heuristics lead to sophisticated rational behavior? SERGIU HART c 2005 p. 56
218 Answer Q Can simple adaptive heuristics lead to sophisticated rational behavior? YES! SERGIU HART c 2005 p. 56
219 Answer Q Can simple adaptive heuristics lead to sophisticated rational behavior? YES! in time... SERGIU HART c 2005 p. 56
220 Summary Macro BEHAVIORAL RATIONAL SERGIU HART c 2005 p. 57
221 Summary Macro BEHAVIORAL RATIONAL ADAPTIVE HEURISTICS SERGIU HART c 2005 p. 57
222 Title ADAPTIVE HEURISTICS (A Little Rationality Goes a Long Way) SERGIU HART c 2005 p. 58
223 Title ADAPTIVE HEURISTICS (A Little Rationality Goes a Long Way) Rationality Takes Time SERGIU HART c 2005 p. 58
224 Title ADAPTIVE HEURISTICS (A Little Rationality Goes a Long Way) Rationality Takes Time Regret?... No Regret! SERGIU HART c 2005 p. 58
225 Title ADAPTIVE HEURISTICS (A Little Rationality Goes a Long Way) Rationality Takes Time Regret?... No Regret! SERGIU HART c 2005 p. 58
Nash Equilibrium and Dynamics
Nash Equilibrium and Dynamics Sergiu Hart June 2008 Conference in Honor of John Nash s 80th Birthday Opening Panel SERGIU HART c 2008 p. 1 NASH EQUILIBRIUM AND DYNAMICS Sergiu Hart Center for the Study
More informationNash Equilibrium and Dynamics
Nash Equilibrium and Dynamics Sergiu Hart September 12, 2008 John F. Nash, Jr., submitted his Ph.D. dissertation entitled Non-Cooperative Games to Princeton University in 1950. Read it 58 years later,
More informationEquilibrium Selection In Coordination Games
Equilibrium Selection In Coordination Games Presenter: Yijia Zhao (yz4k@virginia.edu) September 7, 2005 Overview of Coordination Games A class of symmetric, simultaneous move, complete information games
More informationLearning and Equilibrium
Learning and Equilibrium Drew Fudenberg* and David K. Levine** First version: June 9, 2008 This version: August 30, 2008 * Department of Economics, Harvard University, Cambridge MA, dfudenberg@harvard.edu
More informationLecture 2: Learning and Equilibrium Extensive-Form Games
Lecture 2: Learning and Equilibrium Extensive-Form Games III. Nash Equilibrium in Extensive Form Games IV. Self-Confirming Equilibrium and Passive Learning V. Learning Off-path Play D. Fudenberg Marshall
More informationMASSACHUSETTS INSTITUTE OF TECHNOLOGY
MASSACHUSETTS INSTITUTE OF TECHNOLOGY HARRY DI PEI harrydp@mit.edu OFFICE CONTACT INFORMATION 77 Massachusetts Avenue, E52-301 harrydp@mit.edu http://economics.mit.edu/grad/harrydp MIT PLACEMENT OFFICER
More informationBehavioral Game Theory
Outline (September 3, 2007) Outline (September 3, 2007) Introduction Outline (September 3, 2007) Introduction Examples of laboratory experiments Outline (September 3, 2007) Introduction Examples of laboratory
More informationEvolving Strategic Behaviors through Competitive Interaction in the Large
Evolving Strategic Behaviors through Competitive Interaction in the Large Kimitaka Uno & Akira Namatame Dept. of Computer Science National Defense Academy Yokosuka, 239-8686, JAPAN E-mail: {kimi, nama}@cc.nda.ac.jp
More informationPerfect Bayesian Equilibrium
Perfect Bayesian Equilibrium Econ 400 University of Notre Dame Econ 400 (ND) Perfect Bayesian Equilibrium 1 / 27 Our last equilibrium concept The last equilibrium concept we ll study after Nash eqm, Subgame
More informationLEARNING AND EQUILIBRIUM, II: EXTENSIVE-FORM GAMES. Simons Institute Economics and Computation Boot Camp UC Berkeley,August 2015 Drew Fudenberg
LEARNING AND EQUILIBRIUM, II: EXTENSIVE-FORM GAMES Simons Institute Economics and Computation Boot Camp UC Berkeley,August 2015 Drew Fudenberg Extensive-Form Games Used to model games with sequential and/or
More informationMini-Course in Behavioral Economics Leeat Yariv. Behavioral Economics - Course Outline
Mini-Course in Behavioral Economics Leeat Yariv The goal of this mini-course is to give an overview of the state of the art of behavioral economics. I hope to trigger some research in the field and will
More informationGame Theory. Uncertainty about Payoffs: Bayesian Games. Manar Mohaisen Department of EEC Engineering
240174 Game Theory Uncertainty about Payoffs: Bayesian Games Manar Mohaisen Department of EEC Engineering Korea University of Technology and Education (KUT) Content Bayesian Games Bayesian Nash Equilibrium
More informationTesting models with models: The case of game theory. Kevin J.S. Zollman
Testing models with models: The case of game theory Kevin J.S. Zollman Traditional picture 1) Find a phenomenon 2) Build a model 3) Analyze the model 4) Test the model against data What is game theory?
More informationEpistemic Game Theory
Epistemic Game Theory Adam Brandenburger J.P. Valles Professor, NYU Stern School of Business Distinguished Professor, NYU Tandon School of Engineering Faculty Director, NYU Shanghai Program on Creativity
More informationPareto-optimal Nash equilibrium detection using an evolutionary approach
Acta Univ. Sapientiae, Informatica, 4, 2 (2012) 237 246 Pareto-optimal Nash equilibrium detection using an evolutionary approach Noémi GASKÓ Babes-Bolyai University email: gaskonomi@cs.ubbcluj.ro Rodica
More informationLecture 9: The Agent Form of Bayesian Games
Microeconomics I: Game Theory Lecture 9: The Agent Form of Bayesian Games (see Osborne, 2009, Sect 9.2.2) Dr. Michael Trost Department of Applied Microeconomics December 20, 2013 Dr. Michael Trost Microeconomics
More informationGenerative Adversarial Networks.
Generative Adversarial Networks www.cs.wisc.edu/~page/cs760/ Goals for the lecture you should understand the following concepts Nash equilibrium Minimax game Generative adversarial network Prisoners Dilemma
More informationA Framework for Sequential Planning in Multi-Agent Settings
A Framework for Sequential Planning in Multi-Agent Settings Piotr J. Gmytrasiewicz and Prashant Doshi Department of Computer Science University of Illinois at Chicago piotr,pdoshi@cs.uic.edu Abstract This
More informationGame theory for playing games: sophistication in a negative-externality experiment
: sophistication in a negative-externality experiment John M. Spraggon and Robert J. Oxoby. Economic Inquiry, Vol. 47, No. 3 (July., 2009), pp. 467 81 September 4, 2013 Introduction Observed di erences
More informationConformity and stereotyping in social groups
Conformity and stereotyping in social groups Edward Cartwright Department of Economics Keynes College, University of Kent, Canterbury CT2 7NP, UK E.J.Cartwright@kent.ac.uk Myrna Wooders Department of Economics,
More informationReinforcement Learning : Theory and Practice - Programming Assignment 1
Reinforcement Learning : Theory and Practice - Programming Assignment 1 August 2016 Background It is well known in Game Theory that the game of Rock, Paper, Scissors has one and only one Nash Equilibrium.
More informationTilburg University. Game theory van Damme, Eric. Published in: International Encyclopedia of the Social & Behavioral Sciences
Tilburg University Game theory van Damme, Eric Published in: International Encyclopedia of the Social & Behavioral Sciences Document version: Publisher's PDF, also known as Version of record DOI: 10.1016/B978-0-08-097086-8.71048-8
More informationClicker quiz: Should the cocaine trade be legalized? (either answer will tell us if you are here or not) 1. yes 2. no
Clicker quiz: Should the cocaine trade be legalized? (either answer will tell us if you are here or not) 1. yes 2. no Economic Liberalism Summary: Assumptions: self-interest, rationality, individual freedom
More informationThe Keynesian Beauty Contest: Economic System, Mind, and Brain
The Keynesian Beauty Contest: Economic System, Mind, and Brain Rosemarie Nagel (ICREA-UPF-BGSE) Felix Mauersberger (University Bonn) Christoph Bühren (University Kassel) Prepared for the Conference on
More informationbehavioural economics and game theory
behavioural economics and game theory In traditional economic analysis, as well as in much of behavioural economics, the individual s motivations are summarized by a utility function (or a preference relation)
More informationLearning, Signaling and Social Preferences in Public Good Games
Learning, Signaling and Social Preferences in Public Good Games Marco A. Janssen School of Human Evolution and Social Change and Department of Computer Science and Engineering, Arizona State University,
More informationThe Common Priors Assumption: A comment on Bargaining and the Nature of War
The Common Priors Assumption: A comment on Bargaining and the Nature of War Mark Fey Kristopher W. Ramsay June 10, 2005 Abstract In a recent article in the JCR, Smith and Stam (2004) call into question
More informationBehavioral Game Theory
Behavioral Game Theory Experiments in Strategic Interaction Colin F. Camerer Russell Sage Foundation, New York, New York Princeton University Press, Princeton, New Jersey Preface Introduction 1.1 What
More informationBehavioral Game Theory
School of Computer Science, McGill University March 4, 2011 1 2 3 4 5 Outline Nash equilibria One-shot games 1 2 3 4 5 I Nash equilibria One-shot games Definition: A study of actual individual s behaviors
More informationThoughts on Social Design
577 Center for Mathematical Economics Working Papers September 2017 Thoughts on Social Design Walter Trockel and Claus-Jochen Haake Center for Mathematical Economics(IMW) Bielefeld University Universitätsstraße
More informationCORRELATED EQUILIBRIA, GOOD AND BAD: AN EXPERIMENTAL STUDY. University of Pittsburgh, U.S.A.; University of Aberdeen Business School, U.K.
INTERNATIONAL ECONOMIC REVIEW Vol. 51, No. 3, August 2010 CORRELATED EQUILIBRIA, GOOD AND BAD: AN EXPERIMENTAL STUDY BY JOHN DUFFY AND NICK FELTOVICH 1 University of Pittsburgh, U.S.A.; University of Aberdeen
More informationGames With Incomplete Information: Bayesian Nash Equilibrium
Games With Incomplete Information: Bayesian Nash Equilibrium Carlos Hurtado Department of Economics University of Illinois at Urbana-Champaign hrtdmrt2@illinois.edu June 29th, 2016 C. Hurtado (UIUC - Economics)
More informationTheoretical Explanations of Treatment Effects in Voluntary Contributions Experiments
Theoretical Explanations of Treatment Effects in Voluntary Contributions Experiments Charles A. Holt and Susan K. Laury * November 1997 Introduction Public goods experiments are notable in that they produce
More informationToday s lecture. A thought experiment. Topic 3: Social preferences and fairness. Overview readings: Fehr and Fischbacher (2002) Sobel (2005)
Topic 3: Social preferences and fairness Are we perfectly selfish? If not, does it affect economic analysis? How to take it into account? Overview readings: Fehr and Fischbacher (2002) Sobel (2005) Today
More informationSelecting Strategies Using Empirical Game Models: An Experimental Analysis of Meta-Strategies
Selecting Strategies Using Empirical Game Models: An Experimental Analysis of Meta-Strategies ABSTRACT Christopher Kiekintveld University of Michigan Computer Science and Engineering Ann Arbor, MI 489-22
More informationGame theory and epidemiology
Game theory and epidemiology Biomathematics Seminar Fall 2016 Fan Bai Department of Mathematics and Statistics, Texas Tech University September 13, 2016 Outline Why apply game theory in vaccination? Theory
More informationTopic 3: Social preferences and fairness
Topic 3: Social preferences and fairness Are we perfectly selfish and self-centered? If not, does it affect economic analysis? How to take it into account? Focus: Descriptive analysis Examples Will monitoring
More informationThe Role of Implicit Motives in Strategic Decision-Making: Computational Models of Motivated Learning and the Evolution of Motivated Agents
Games 2015, 6, 604-636; doi:10.3390/g6040604 Article OPEN ACCESS games ISSN 2073-4336 www.mdpi.com/journal/games The Role of Implicit Motives in Strategic Decision-Making: Computational Models of Motivated
More informationAn Experiment to Evaluate Bayesian Learning of Nash Equilibrium Play
. An Experiment to Evaluate Bayesian Learning of Nash Equilibrium Play James C. Cox 1, Jason Shachat 2, and Mark Walker 1 1. Department of Economics, University of Arizona 2. Department of Economics, University
More informationHomo economicus is dead! How do we know how the mind works? How the mind works
Some facts about social preferences, or why we're sometimes nice and sometimes not Karthik Panchanathan buddha@ucla.edu Homo economicus is dead! It was a mistake to believe that individuals and institutions
More informationSUPPLEMENTARY INFORMATION
Supplementary Statistics and Results This file contains supplementary statistical information and a discussion of the interpretation of the belief effect on the basis of additional data. We also present
More informationHow rational are your decisions? Neuroeconomics
How rational are your decisions? Neuroeconomics Hecke CNS Seminar WS 2006/07 Motivation Motivation Ferdinand Porsche "Wir wollen Autos bauen, die keiner braucht aber jeder haben will." Outline 1 Introduction
More informationEffects of Sequential Context on Judgments and Decisions in the Prisoner s Dilemma Game
Effects of Sequential Context on Judgments and Decisions in the Prisoner s Dilemma Game Ivaylo Vlaev (ivaylo.vlaev@psy.ox.ac.uk) Department of Experimental Psychology, University of Oxford, Oxford, OX1
More informationWhat Happens in the Field Stays in the Field: Professionals Do Not Play Minimax in Laboratory Experiments
What Happens in the Field Stays in the Field: Professionals Do Not Play Minimax in Laboratory Experiments Steven D. Levitt, John A. List, and David H. Reiley American Economic Review July 2008 HELLO! I
More informationPerfect Bayesian Equilibrium
In the final two weeks: Goals Understand what a game of incomplete information (Bayesian game) is Understand how to model static Bayesian games Be able to apply Bayes Nash equilibrium to make predictions
More informationA Game Theoretical Approach for Hospital Stockpile in Preparation for Pandemics
Proceedings of the 2008 Industrial Engineering Research Conference J. Fowler and S. Mason, eds. A Game Theoretical Approach for Hospital Stockpile in Preparation for Pandemics Po-Ching DeLaurentis School
More informationOn the Evolution of Choice Principles
On the Evolution of Choice Principles Michael Franke 1 and Paolo Galeazzi 2 1 Department of Linguistics, University of Tübingen 2 Institute for Logic, Language and Computation, Universiteit van Amsterdam
More informationIntroduction to Game Theory Autonomous Agents and MultiAgent Systems 2015/2016
Introduction to Game Theory Autonomous Agents and MultiAgent Systems 2015/2016 Ana Paiva * These slides are based on the book by Prof. M. Woodridge An Introduction to Multiagent Systems and the online
More informationEliciting Beliefs by Paying in Chance
CMS-EMS Center for Mathematical Studies in Economics And Management Science Discussion Paper #1565 Eliciting Beliefs by Paying in Chance ALVARO SANDRONI ERAN SHMAYA Northwestern University March 17, 2013
More informationA short introduction to game theory
A short introduction to game theory (presentation to the Cortex Club, 11/3/2003) Suggested readings: "A Survey of Applicable Game Theory" by Robert Gibbons (a non-technical introduction to the main ideas)
More informationAbhimanyu Khan, Ronald Peeters. Cognitive hierarchies in adaptive play RM/12/007
Abhimanyu Khan, Ronald Peeters Cognitive hierarchies in adaptive play RM/12/007 Cognitive hierarchies in adaptive play Abhimanyu Khan Ronald Peeters January 2012 Abstract Inspired by the behavior in repeated
More informationThe Game Prisoners Really Play: Preference Elicitation and the Impact of Communication
The Game Prisoners Really Play: Preference Elicitation and the Impact of Communication Michael Kosfeld University of Zurich Ernst Fehr University of Zurich October 10, 2003 Unfinished version: Please do
More informationOperant Matching as a Nash Equilibrium of an Intertemporal Game
Operant Matching as a Nash Equilibrium of an Intertemporal Game The MIT Faculty has made this article openly available. Please share how this access benefits you. Your story matters. Citation As Published
More informationVolume 30, Issue 3. Boundary and interior equilibria: what drives convergence in a beauty contest'?
Volume 30, Issue 3 Boundary and interior equilibria: what drives convergence in a beauty contest'? Andrea Morone University of Bari & University of Girona Piergiuseppe Morone University of Foggia Abstract
More informationPublicly available solutions for AN INTRODUCTION TO GAME THEORY
Publicly available solutions for AN INTRODUCTION TO GAME THEORY Publicly available solutions for AN INTRODUCTION TO GAME THEORY MARTIN J. OSBORNE University of Toronto Copyright 2012 by Martin J. Osborne
More informationSome Thoughts on the Principle of Revealed Preference 1
Some Thoughts on the Principle of Revealed Preference 1 Ariel Rubinstein School of Economics, Tel Aviv University and Department of Economics, New York University and Yuval Salant Graduate School of Business,
More informationMorality, policy and the brain
Intelligence and Strategic Behaviour 1 of 43 Morality, policy and the brain Aldo Rustichini Department of Economics, University of Minnesota Vienna Behavioral Economics Network, September 20 Brief Philosophical
More informationLearning Conditional Behavior in Similar Stag Hunt Games
Learning Conditional Behavior in Similar Stag Hunt Games Dale O. Stahl and John Van Huyck January 2002 Abstract: This paper reports an experiment that varies the range of Stag Hunt games experienced by
More informationCognitive Ability in a Team-Play Beauty Contest Game: An Experiment Proposal THESIS
Cognitive Ability in a Team-Play Beauty Contest Game: An Experiment Proposal THESIS Presented in Partial Fulfillment of the Requirements for the Degree Master of Mathematical Sciences in the Graduate School
More informationULTIMATUM GAME. An Empirical Evidence. Presented By: SHAHID RAZZAQUE
1 ULTIMATUM GAME An Empirical Evidence Presented By: SHAHID RAZZAQUE 2 Difference Between Self-Interest, Preference & Social Preference Preference refers to the choices people make & particularly to tradeoffs
More informationIrrationality in Game Theory
Irrationality in Game Theory Yamin Htun Dec 9, 2005 Abstract The concepts in game theory have been evolving in such a way that existing theories are recasted to apply to problems that previously appeared
More informationInformation Acquisition in the Iterated Prisoner s Dilemma Game: An Eye-Tracking Study
Information Acquisition in the Iterated Prisoner s Dilemma Game: An Eye-Tracking Study Evgenia Hristova (ehristova@cogs.nbu.bg ) Central and Eastern European Center for Cognitive Science, New Bulgarian
More informationJakub Steiner The University of Edinburgh. Abstract
A trace of anger is enough: on the enforcement of social norms Jakub Steiner The University of Edinburgh Abstract It is well documented that the possibility of punishing free-riders increases contributions
More informationInformation Design, Bayesian Persuasion, and Bayes Correlated Equilibrium
American Economic Review: Papers & Proceedings 206, 06(5): 7 http://dx.doi.org/0.257/aer.p206046 Information Design and Bayesian Persuasion Information Design, Bayesian Persuasion, and Bayes Correlated
More informationUncertainty about Rationality.
Uncertainty about Rationality. Separating Optimality from Cognitive Ability in Models of Strategic Reasoning Marzena J. Rostek This draft: October 2006 Abstract Uncertainty about the rationality of others
More informationPredictive Game Theory* Drew Fudenberg Harvard University
* Drew Fudenberg Harvard University Abstract: Game theory is used in a variety of field inside and outside of social science. The standard methodology is to write down a description of the game and characterize
More informationAn Economist's Perspective on Probability Matching
An Economist's Perspective on Probability Matching by Nir Vulkan * December 1998 Abstract. The experimental phenomenon known as probability matching is often offered as evidence in support of adaptive
More informationRational Learning and Information Sampling: On the Naivety Assumption in Sampling Explanations of Judgment Biases
Psychological Review 2011 American Psychological Association 2011, Vol. 118, No. 2, 379 392 0033-295X/11/$12.00 DOI: 10.1037/a0023010 Rational Learning and Information ampling: On the Naivety Assumption
More informationOpen-minded imitation in vaccination games and heuristic algorithms
Open-minded imitation in vaccination games and heuristic algorithms Winfried Just Department of Mathematics, Ohio University Based on joint work with Ying Xin, Montana State University and David Gerberry,
More informationTowards a Justification the Principle of Coordination
TI 2000-017/1 Tinbergen Institute Discussion Paper Towards a Justification the Principle of Coordination Maarten C.W. Janssen Tinbergen Institute The Tinbergen Institute is the institute for economic research
More informationTwo-sided Bandits and the Dating Market
Two-sided Bandits and the Dating Market Sanmay Das Center for Biological and Computational Learning Massachusetts Institute of Technology Cambridge, MA 02139 sanmay@mit.edu Emir Kamenica Department of
More information1 Invited Symposium Lecture at the Econometric Society Seventh World Congress, Tokyo, 1995, reprinted from David
THEORY AND EXPERIMENT IN THE ANALYSIS OF STRATEGIC INTERACTION 1 Vincent P. Crawford, University of California, San Diego One cannot, without empirical evidence, deduce what understandings can be perceived
More informationEvolutionary game theory and cognition
Evolutionary game theory and cognition Artem Kaznatcheev School of Computer Science & Department of Psychology McGill University November 15, 2012 Artem Kaznatcheev (McGill University) Evolutionary game
More informationAmbiguity and the Bayesian Approach
Ambiguity and the Bayesian Approach Itzhak Gilboa Based on papers with Massimo Marinacci, Andy Postlewaite, and David Schmeidler November 1, 2011 Gilboa () Ambiguity and the Bayesian Approach November
More informationEssays on Behavioral and Experimental Game Theory. Ye Jin. A dissertation submitted in partial satisfaction of the. requirements for the degree of
Essays on Behavioral and Experimental Game Theory by Ye Jin A dissertation submitted in partial satisfaction of the requirements for the degree of Doctor of Philosophy in Economics in the Graduate Division
More informationBehavioral Economics - Syllabus
Behavioral Economics - Syllabus 1 st Term - Academic Year 2016/2017 Professor Luigi Mittone luigi.mittone@unitn.it Teaching Assistant Viola Saredi violaluisa.saredi@unitn.it Course Overview The course
More informationarxiv: v1 [cs.gt] 14 Mar 2014
Generalized prisoner s dilemma Xinyang Deng a, Qi Liu b, Yong Deng a,c, arxiv:1403.3595v1 [cs.gt] 14 Mar 2014 a School of Computer and Information Science, Southwest University, Chongqing, 400715, China
More informationIdentity, Homophily and In-Group Bias: Experimental Evidence
Identity, Homophily and In-Group Bias: Experimental Evidence Friederike Mengel & Sergio Currarini Univeersity of Nottingham Universita Ca Foscari and FEEM, Venice FEEM, March 2012 In-Group Bias Experimental
More informationThe Power of Sunspots: An Experimental Analysis
No. 13-2 The Power of Sunspots: An Experimental Analysis Abstract: Dietmar Fehr, Frank Heinemann, and Aniol Llorente-Saguer The authors show how the influence of extrinsic random signals depends on the
More informationFull terms and conditions of use:
This article was downloaded by: [148.251.232.83] On: 18 November 2018, At: 10:37 Publisher: Institute for Operations Research and the Management Sciences (INFORMS) INFORMS is located in Maryland, USA Management
More informationOPTIMIZATION INCENTIVES AND COORDINATION FAILURE IN LABORATORY STAG HUNT GAMES
OPTIMIZATION INCENTIVES AND COORDINATION FAILURE IN LABORATORY STAG HUNT GAMES Raymond Battalio, Larry Samuelson, and John Van Huyck May 2000 Abstract: This paper reports an experiment comparing three
More informationWorking paper n
Laboratoire REGARDS (EA 6292) Université de Reims Champagne-Ardenne Working paper n 6-2014 Against the Eliminativist View of Institutions in Economics: Rule-Following and Game Theory Cyril Hédoin* * Professeur
More informationCONVERGENCE: AN EXPERIMENTAL STUDY OF TEACHING AND LEARNING IN REPEATED GAMES
CONVERGENCE: AN EXPERIMENTAL STUDY OF TEACHING AND LEARNING IN REPEATED GAMES Kyle Hyndman Maastricht University and Southern Methodist University Erkut Y. Ozbay University of Maryland Andrew Schotter
More informationPublished in: Proceedings of the National Academy of Sciences of the United States of America
University of Groningen Learning dynamics in social dilemmas Macy, MW; Flache, Andreas; Macy, Michael W. Published in: Proceedings of the National Academy of Sciences of the United States of America DOI:
More informationSignalling, shame and silence in social learning. Arun Chandrasekhar, Benjamin Golub, He Yang Presented by: Helena, Jasmin, Matt and Eszter
Signalling, shame and silence in social learning Arun Chandrasekhar, Benjamin Golub, He Yang Presented by: Helena, Jasmin, Matt and Eszter Motivation Asking is an important information channel. But the
More informationUnlike standard economics, BE is (most of the time) not based on rst principles, but on observed behavior of real people.
Behavioral Economics Lecture 1. Introduction and the Methodology of Experimental Economics 1. Introduction Characteristica of Behavioral Economics (BE) Unlike standard economics, BE is (most of the time)
More informationInductive Cognitive Models and the Coevolution of Signaling
of of Analytis Max Planck Institute for Human Development October 18, 2012 of 1 2 3 4 5 6 Appendix of It simply was not true that a world with almost perfect information was very similar to one in which
More informationMTAT Bayesian Networks. Introductory Lecture. Sven Laur University of Tartu
MTAT.05.113 Bayesian Networks Introductory Lecture Sven Laur University of Tartu Motivation Probability calculus can be viewed as an extension of classical logic. We use many imprecise and heuristic rules
More informationVOLKSWIRTSCHAFTLICHE ABTEILUNG. Reputations and Fairness in Bargaining Experimental Evidence from a Repeated Ultimatum Game with Fixed Opponents
VOLKSWIRTSCHAFTLICHE ABTEILUNG Reputations and Fairness in Bargaining Experimental Evidence from a Repeated Ultimatum Game with Fixed Opponents Tilman Slembeck March 999 Discussion paper no. 99 DEPARTMENT
More informationStrong Reciprocity and Human Sociality
Notes on Behavioral Economics 1 Strong Reciprocity and Human Sociality Human groups are highly social despite a low level of relatedness. There is an empirically identifiable form of prosocial behavior
More informationBounded Rationality, Taxation, and Prohibition 1. Suren Basov 2 and Svetlana Danilkina 3
Bounded Rationality, Taxation, and Prohibition 1 Suren Basov 2 and Svetlana Danilkina 3 Keywords and Phrases: addiction, bounded rationality, taxation, prohibition. 1 The second author s work was supported
More informationSupporting Information
Supporting Information Burton-Chellew and West 10.1073/pnas.1210960110 SI Results Fig. S4 A and B shows the percentage of free riders and cooperators over time for each treatment. Although Fig. S4A shows
More informationA Case for Behavioural Game Theory
Journal of Game Theory 2017, 6(1): 7-14 DOI: 10.5923/j.jgt.20170601.02 A Case for Behavioural Game Theory Sarah Bonau Faculty of Business and Economics, University of Pecs, Pecs, Hungary Abstract When
More information1 Language. 2 Title. 3 Lecturer. 4 Date and Location. 5 Course Description. Discipline: Methods Course. English
Discipline: Methods Course 1 Language English 2 Title Experimental Research and Behavioral Decision Making 3 Lecturer Prof. Dr. Christian D. Schade, Humboldt-Universität zu Berlin Homepage: https://www.wiwi.hu-berlin.de/de/professuren/bwl/ebdm
More informationThe Foundations of Behavioral. Economic Analysis SANJIT DHAMI
The Foundations of Behavioral Economic Analysis SANJIT DHAMI OXFORD UNIVERSITY PRESS CONTENTS List offigures ListofTables %xi xxxi Introduction 1 1 The antecedents of behavioral economics 3 2 On methodology
More informationDancing at Gunpoint: A Review of Herbert Gintis Bounds of Reason
Dancing at Gunpoint: A Review of Herbert Gintis Bounds of Reason The Bounds of Reason seeks to accomplish many things. It introduces epistemic game theory, discusses other-regarding preferences in games
More informationUNIVERSITY OF OSLO DEPARTMENT OF ECONOMICS
UNIVERSITY OF OSLO DEPARTMENT OF ECONOMICS Take home exam: ECON5200/9200 Advanced Microeconomics Exam period: Monday 11 December at 09.00 to Thursday 14 December at 15.00 Guidelines: Submit your exam answer
More informationLearning and Transfer: An Experimental Investigation into Ultimatum Bargaining
SCHOOL OF ECONOMICS HONOURS THESIS AUSTRALIAN SCHOOL OF BUSINESS Learning and Transfer: An Experimental Investigation into Ultimatum Bargaining Author: Justin CHEONG Supervisor: Dr. Ben GREINER Bachelor
More informationBelief Updating in Sequential Games of Two-Sided Incomplete Information: An Experimental Study of a Crisis Bargaining Model
Quarterly Journal of Political Science, 2010, 5: 1 13 Belief Updating in Sequential Games of Two-Sided Incomplete Information: An Experimental Study of a Crisis Bargaining Model Dustin H. Tingley 1 and
More informationHOT VS. COLD: SEQUENTIAL RESPONSES AND PREFERENCE STABILITY IN EXPERIMENTAL GAMES * August 1998
HOT VS. COLD: SEQUENTIAL RESPONSES AND PREFERENCE STABILITY IN EXPERIMENTAL GAMES * August 1998 Jordi Brandts Instituto de Análisis Económico (CSIC) Barcelona and University of California Berkeley (jbrandts@econ.berkeley.edu)
More information