Nash Dynamics, Meritocratic Matching, and Cooperation
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Heinrich H. Nax
Abstract
John F Nash (1950) proposed dynamics for repeated interactions according to which agents myopically play individual best-responses against their observations of other agents’ past play. Such dynamics converge to Nash equilibria. Without suitable mechanisms, this means that best-response dynamics can lead to low levels of cooperative behavior and thus to inefficient outcomes in social dilemma games. Here, we discuss the theoretical predictions of these dynamics in a variety of social dilemmas and assess these in light of behavioral evidence. We particularly focus on “meritocratic matching”, a class of mechanisms that leads to both low cooperation (inefficient) and high cooperation (near-efficient) equilibria (Gunnthorsdottir et al. 2010; Nax, Murphy, and Helbing 2014; Nax et al. 2015). Most behavioral theories derived from related social dilemmas cannot explain the behavioral evidence for this class of games, but Nash dynamics provide a very satisfactory explanation. We also argue that Nash dynamics provide a parsimonious account of behavioral results for several different social dilemmas, with the exception of the linear public goods game.
Abstract
John F Nash (1950) proposed dynamics for repeated interactions according to which agents myopically play individual best-responses against their observations of other agents’ past play. Such dynamics converge to Nash equilibria. Without suitable mechanisms, this means that best-response dynamics can lead to low levels of cooperative behavior and thus to inefficient outcomes in social dilemma games. Here, we discuss the theoretical predictions of these dynamics in a variety of social dilemmas and assess these in light of behavioral evidence. We particularly focus on “meritocratic matching”, a class of mechanisms that leads to both low cooperation (inefficient) and high cooperation (near-efficient) equilibria (Gunnthorsdottir et al. 2010; Nax, Murphy, and Helbing 2014; Nax et al. 2015). Most behavioral theories derived from related social dilemmas cannot explain the behavioral evidence for this class of games, but Nash dynamics provide a very satisfactory explanation. We also argue that Nash dynamics provide a parsimonious account of behavioral results for several different social dilemmas, with the exception of the linear public goods game.
Kapitel in diesem Buch
- Frontmatter I
- Preface VII
- Contents IX
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Part I: Foundations
- Introduction 3
- Micro-Macro Models in Sociology: Antecedents of Coleman’s Diagram 11
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Part II: Institutions
- The Kula Ring of Bronislaw Malinowski: Simulating the Co-Evolution of an Economic and Ceremonial Exchange System 39
- From the Savannah to the Magistrate’s Court 61
- The Dependence of Human Cognitive and Motivational Processes on Institutional Systems 85
- Social Dilemmas and Solutions in Immunizations 107
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Part III: Social Norms
- When Do People Follow Norms and When Do They Pursue Their Interests? 119
- Personal Exposure to Unfavorable Environmental Conditions: Does it Stimulate Environmental Activism? 143
- Cooperation and Career Chances in Science 165
- Social Dilemmas in Science: Detecting Misconduct and Finding Institutional Solutions 189
- The Interplay of Social Status and Reciprocity 215
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Part IV: Peer-Sanctioning
- Types of Normative Conflicts and the Effectiveness of Punishment 239
- Social Status and Peer-Punishment: Findings from Two Road Traffic Field Experiments 259
- The Double Edge of Counter-Sanctions. Is Peer Sanctioning Robust to Counter-Punishment but Vulnerable to Counter-Reward? 279
- Diffusion of Responsibility in Norm Enforcement 303
- Endogenous Peer Punishment Institutions in Prisoner’s Dilemmas: The Role of Noise 327
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Part V: Trust and Trustworthiness
- Cooperation and Distrust – a Contradiction? 357
- Signaling Theory Evolving: Signals and Signs of Trustworthiness in Social Exchange 373
- Trust and Promises as Friendly Advances 393
- Online Reputation in eBay Auctions: Damaging and Rebuilding Trustworthiness Through Feedback Comments from Buyers and Sellers 421
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Part VI: Game Theory
- Nash Dynamics, Meritocratic Matching, and Cooperation 447
- A Note on the Strategic Determination of the Required Number of Volunteers 471
- Is No News Bad News? A Hostage Trust Game with Incomplete Information and Fairness Considerations of the Trustee 481
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Part VII: Experimental Methods
- When Prediction Fails 505
- Measuring Social Preferences on Amazon Mechanical Turk 527
- Repetition Effects in Laboratory Experiments 547
- Notes on the Editors and Contributors 567
Kapitel in diesem Buch
- Frontmatter I
- Preface VII
- Contents IX
-
Part I: Foundations
- Introduction 3
- Micro-Macro Models in Sociology: Antecedents of Coleman’s Diagram 11
-
Part II: Institutions
- The Kula Ring of Bronislaw Malinowski: Simulating the Co-Evolution of an Economic and Ceremonial Exchange System 39
- From the Savannah to the Magistrate’s Court 61
- The Dependence of Human Cognitive and Motivational Processes on Institutional Systems 85
- Social Dilemmas and Solutions in Immunizations 107
-
Part III: Social Norms
- When Do People Follow Norms and When Do They Pursue Their Interests? 119
- Personal Exposure to Unfavorable Environmental Conditions: Does it Stimulate Environmental Activism? 143
- Cooperation and Career Chances in Science 165
- Social Dilemmas in Science: Detecting Misconduct and Finding Institutional Solutions 189
- The Interplay of Social Status and Reciprocity 215
-
Part IV: Peer-Sanctioning
- Types of Normative Conflicts and the Effectiveness of Punishment 239
- Social Status and Peer-Punishment: Findings from Two Road Traffic Field Experiments 259
- The Double Edge of Counter-Sanctions. Is Peer Sanctioning Robust to Counter-Punishment but Vulnerable to Counter-Reward? 279
- Diffusion of Responsibility in Norm Enforcement 303
- Endogenous Peer Punishment Institutions in Prisoner’s Dilemmas: The Role of Noise 327
-
Part V: Trust and Trustworthiness
- Cooperation and Distrust – a Contradiction? 357
- Signaling Theory Evolving: Signals and Signs of Trustworthiness in Social Exchange 373
- Trust and Promises as Friendly Advances 393
- Online Reputation in eBay Auctions: Damaging and Rebuilding Trustworthiness Through Feedback Comments from Buyers and Sellers 421
-
Part VI: Game Theory
- Nash Dynamics, Meritocratic Matching, and Cooperation 447
- A Note on the Strategic Determination of the Required Number of Volunteers 471
- Is No News Bad News? A Hostage Trust Game with Incomplete Information and Fairness Considerations of the Trustee 481
-
Part VII: Experimental Methods
- When Prediction Fails 505
- Measuring Social Preferences on Amazon Mechanical Turk 527
- Repetition Effects in Laboratory Experiments 547
- Notes on the Editors and Contributors 567