Games2014, 5(4), 234-256; doi:10.3390/g5040234 - published 14 November 2014 Show/Hide Abstract
Abstract: We investigate experimentally whether the extent of conditional cooperation in public good games depends on the marginal per capita return (MPCR) to the public good and type of game. The MPCR is varied from 0.2 to 0.4 to 0.8. The ‘standard’ game, in which three players contribute before a follower, is compared with a leader-follower game, in which one player leads and three follow. Even though we observe less conditional cooperation for an MPCR of 0.2, the prevalence of conditional cooperation remains relatively stable to changes in the MPCR and game timing. In contrast, the level of MPCR has a strong effect on unconditional contributions. Our results highlight the critical role played by leaders in a public good game.
Games2014, 5(4), 204-233; doi:10.3390/g5040204 - published 30 October 2014 Show/Hide Abstract
Abstract: This paper attacks a problem like the one addressed in an earlier work (Potthoff, 2013) but is more mathematical. The setting is one where an election is to choose a single winner from m (> 2) candidates, it is postulated that voters have knowledge of the preference profile of the electorate, and preference cycles are limited. Both papers devise voting systems whose two key goals are to select a Condorcet winner (if one exists) and to resist manipulation. These systems entail equilibrium strategies where everyone votes sincerely, no group of voters sharing the same preference ordering can gain by deviating given that no one else deviates, and the Condorcet candidate wins. The present paper uses two unusual ballot types. One asks voters to rank the candidates with respect both to their own preferences and to their discerned order of preference of the entire electorate. The other just asks voters for their own preference ranks plus approval votes. Novel mathematical elements distinguish this paper. Its Condorcet completion methods examine all candidate triples, sometimes analyze loop(s) of some of those triples, and order candidates in a set by first determining the last-place candidate. Its non-manipulability proofs involve mathematical induction on m.
Games2014, 5(4), 191-203; doi:10.3390/g5040191 - published 21 October 2014 Show/Hide Abstract
Abstract: A generalization of transferable utility cooperative games from the functional forms introduced by von Neumann and Morgenstern (1944, Theory of Games and Economic Behavior) and Lucas and Thrall (1963, Naval Research Logistics Quarterly, 10, 281–298) is proposed to allow for multiple membership. The definition of the core is adapted analogously and the possibilities for the cross-cutting of contractual arrangements are illustrated and discussed.
Games2014, 5(3), 188-190; doi:10.3390/g5030188 - published 4 September 2014 Show/Hide Abstract
Abstract: Classical economists from Adam Smith to Thomas Malthus and to Karl Marx have considered the importance of direct interdependence and direct interactions for the economy. This was even more the case for original institutionalist thinkers such as Thorstein Veblen, John Commons, and Clarence Ayres. In their writings, direct interdependence, interactions (or transactions) among agents, with all beneficial and with all problematic consequences, took center stage in economic analysis. Why, for instance, do people adhere to a particular new fashion or trend? Because others do, after eminent people, wealthy people, the “leisure class” (T. Veblen), have made it a symbol for status. The new fashion, however, ceases to serve as such a symbol once too many people follow it. The constant effort put into following trends and adopting fashion turns out to be a social dilemma, driven by Veblenian instincts, such as invidious distinction in predatory societies, conspicuous consumption and emulation. [...]
Games2014, 5(3), 160-187; doi:10.3390/g5030160 - published 18 August 2014 Show/Hide Abstract
Abstract: We use an agent-based model to investigate the interdependent dynamics between individual agency and emergent socioeconomic structure, leading to institutional change in a generic way. Our model simulates the emergence and exit of institutional units, understood as generic governed social structures. We show how endogenized trust and exogenously given leader authority influences institutional change, i.e., diversity in institutional life-cycles. It turns out that these governed institutions (de)structure in cyclical patterns dependent on the overall evolution of trust in the artificial society, while at the same time, influencing this evolution by supporting social learning. Simulation results indicate three scenarios of institutional life-cycles. Institutions may, (1) build up very fast and freeze the artificial society in a stable but fearful pattern (ordered system); (2) exist only for a short time, leading to a very trusty society (highly fluctuating system); and (3) structure in cyclical patterns over time and support social learning due to cumulative causation of societal trust (complex system).
Games2014, 5(3), 140-159; doi:10.3390/g5030140 - published 31 July 2014 Show/Hide Abstract
Abstract: Our study analyzes theories of learning for strategic interactions in networks. Participants played two of the 2 × 2 games used by Selten and Chmura . Every participant played against four neighbors. As a distinct aspect our experimental design allows players to choose different strategies against each different neighbor. The games were played in two network structures: a lattice and a circle. We analyze our results with respect to three aspects. We first compare our results with the predictions of five different equilibrium concepts (Nash equilibrium, quantal response equilibrium, action-sampling equilibrium, payoff-sampling equilibrium, and impulse balance equilibrium) which represent the long-run equilibrium of a learning process. Secondly, we relate our results to four different learning models (impulse-matching learning, action-sampling learning, self-tuning EWA, and reinforcement learning) which are based on the (behavioral) round-by-round learning process. At last, we compare the data with the experimental results of Selten and Chmura . One main result is that the majority of players choose the same strategy against each neighbor. As other results, we observe an order of predictive success for the equilibrium concepts that is different from the order shown by Selten and Chmura and an order of predictive success for the learning models that is only slightly different from the order shown in a recent paper by Chmura, Goerg and Selten .