New directions for modelling strategic behavior: Game-theoretic models of communication, coordination, and cooperation in economic relationships

Crawford, Vincent P. “New directions for modelling strategic behavior: Game-theoretic models of communication, coordination, and cooperation in economic relationships." Journal of Economic Perspectives 30.4 (2016): 131-50.


==original Abstract==

In this paper, I discuss the state of progress in applications of game theory in economics and try to identify possible future developments that are likely to yield further progress. To keep the topic manageable, I focus on a canonical economic problem that is inherently game-theoretic, that of fostering efficient coordination and cooperation in relationships, with particular attention to the role of communication. I begin with an overview of noncooperative game theory’s principal model of behavior, Nash equilibrium. I next discuss the alternative “thinking" and “learning" rationales for how real-world actors might reach equilibrium decisions. I then review how Nash equilibrium has been used to model coordination, communication, and cooperation in relationships, and discuss possible developments


GIMS, an open source market software

S. Palan, GIMS-Software for asset market experiments. J. Behav. Exp. Finance 5, 1–14, (2015). Medline doi:10.1016/j.jbef.2015.02.001 (可免費閱讀)

==by YNY==

GIMS 是架在 z-Tree 上,專門用來跑財務資產市場 (又稱 double auction asset market) 的實驗平台軟體,採開放源碼 (open source) 授權。

此文亦介紹、比較了其它相關的財務市場實驗平台軟體,參見文中的 Table 1。

  • EconPort MarketLink(based on Java and experiments can be run over the internet)
  • Flex-E-Markets(not open source)
  • GIMS(based on z-Tree)
  • jMarkets (open-source software based on Java)
  • Rotman Interactive Trader (非免費)
  • SoPHIE Labs (非免費)

Continuous double auction market interface

Evaluating replicability of laboratory experiments in economics

C. F. Camerer, A. Dreber, E. Forsell, T.-H. Ho, J. Huber, M. Johannesson, M. Kirchler, J. Almenberg, A. Altmejd, T. Chan, E. Heikensten, F. Holzmeister, T. Imai, S. Isaksson, G. Nave, T. Pfeiffer, M. Razen, H. Wu. Evaluating replicability of laboratory experiments in economics. Science, 2016; DOI: 10.1126/science.aaf0918


終於有人系統性地檢視經濟實驗, 雖然只挑 AER 和 QJE 所發表的, 但經得起「重覆實驗」來驗證結果的研究, 才符合科學的精神…


作者: 刘贞 / 施於人
出版社: 机械工业出版社
出版年: 2012-9
页数: 186
定价: 26.00元
ISBN: 9787111389781

Endogenous Market Formation and Monetary Trade: an Experiment

Date: 2016-08
By: Avi Weiss (Bar-Ilan University)
Gabriele Camera
Dror Goldberg
The theory of money typically ignores the fact that the mode of market interaction arises endogenously, and simply assumes a decentralized, bilateral exchange process. However, endogenizing the organization of trade is critical for understanding the conditions that lend themselves to the development of money as a mode of exchange. To study this, we develop a “travelling game” to study the spontaneous emergence of different systems of exchange theoretically and experimentally. Players located on separate “islands” can either stay and trade on their island, or pay a cost to trade elsewhere. Earnings rise with the frequency of trade but fall with the frequency of travel. Decentralized and centralized markets can both emerge in equilibrium. The latter maximize consumption frequencies and are socially efficient; the former minimize travel cost and require the use of a medium of exchange. In the laboratory, a centralized market more frequently emerges when subjects perform diversified economic tasks, and when they interact in large groups and cannot be sure whether they will meet the same counterpart in later periods. The experiment shows that to understand the emergence of monetary systems it is important to amend the theory of money such that the market structure is endogenized.
Keywords: endogenous institutions, macroeconomic experiments, matching, coordination, markets, money.

Does Experience Affect Fairness and Reciprocity in Lab Experiments?

Date: 2016-07
By: Tiziana Medda (University of Cagliari)
Vittorio Pelligra (University of Cagliari)
Tommaso Reggiani (LUMSA University)
One of the most common criticisms about the external validity of lab experiments in economics concerns the representativeness of participants usually considered in these studies. The ever-increasing number of experiments and the prevalent location of research centers in university campuses produced a peculiar category of subjects: Students with high level of laboratory experience built through repeated participations in experimental sessions. We investigate whether the experience accumulated in this way biases subjects’ behaviour in a set of simple games widely used to study social preferences (Dictator Game, Ultimatum Game, Trust Game, and Prisoner’s Dilemma Game). Our main finding shows that subjects with a high level of experience in lab experiments do not behave in a significantly different way from novices.
Keywords: Experimental Methodology, External Validity, Experience, Lab Experiment
JEL: D03 D83 C91 C92

Individual and Group Preferences Over Risk: An Experiment

Date: 2016-07
By: Morone, Andrea
Temerario, Tiziana
The recent literature on individual and group choices over risk has led to different results. In some studies under unanimity, groups were found to be less risk averse than individuals, while those under majority did not highlight significant differences. However, both the types of studies impose the decision rule to the group. In the present work we elicited groups’ preference under risk using a consensus rule, i.e. groups are free to solve disagreement endogenously, just as in the real life. Results from our pairwise choices experiment shows that when group members are free to use any rule they want in order to reach unanimity, there is no statistical difference between individuals’ and groups’ risk aversion.
Keywords: Risk; uncertainty; decision-making; group decision; lottery; experimental economics; experiment;
JEL: C92 D81

Risk and punishment revisited Errors in variables and in the lab

Date: 2016-07-26
By: Christoph Engel (MPI for Research on Collective Goods, Bonn)
Oliver Kirchkamp (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
We provide an example for an errors in variables problem which might be often neglected but which is quite common in lab experimental practice: In one task, attitude towards risk is measured, in another task participants behave in a way that can possibly be explained by their risk attitude. How should we deal with inconsistent behaviour in the risk task? Ignoring these observations entails two biases: An errors in variables bias and a selection bias. We argue that inconsistent observations should be exploited to address the errors in variables problem, which can easily be done within a Bayesian framework.
Keywords: Risk, lab experiment, public good, errors in variables, Bayesian inference
JEL: C91 D43 L41

A Note on Shapley Ratings in Brain Networks

Date: 2016
By: Musegaas, Marieke (Tilburg University, Center For Economic Research)
Dietzenbacher, Bas (Tilburg University, Center For Economic Research)
Borm, Peter (Tilburg University, Center For Economic Research)
We consider the problem of computing the in uence of a neuronal structure in a brain network. Abraham, Kotter, Krumnack, and Wanke (2006) computed this influence by using the Shapley value of a coalitional game corresponding to a directed network as a rating. Kotter, Reid, Krumnack, Wanke, and Sporns (2007) applied this rating to large-scale brain networks, in particular to the macaque visual cortex and the macaque prefrontal cortex. We introduce an alternative coalitional game that is more intuitive from a game theoretical point of view. We use the Shapley value of this game as an alternative rating to analyze the macaque brain networks and corroborate the findings of Kotter et al. (2007). Moreover, we show how missing information on the existence of certain connections can readily be incorporated into this game and the corresponding Shapley rating.
Keywords: brain networks; coalitional games; Shapley value
JEL: C71

Incentive of risk sharing and trust formation: Experimental and survey evidence from Bangladesh

Date: 2016-06-13
By: Shoji, Masahiro
Using data from a unique household survey and an artefactual field experiment conducted in rural Bangladesh, this study evaluates the impact on trust in community members of an incentive to maintain a risk-sharing arrangement between villagers. Risk sharing is a major opportunity for cooperation in rural economies, and the experience of cooperation could facilitate trust. In order to test this hypothesis, this study characterizes the incentive for risk sharing by the patterns of exogenous income shocks in the real world and risk preference, and trust in community members is elicited experimentally. The empirical results from dyadic regression demonstrate that villagers connected by a stronger incentive form higher level of trust. It is also found that villagers are more likely to share risks in villages that have stronger incentives. These findings suggest that the introduction of formal insurance, which reduces the incentive of risk sharing, could break down trust.
Keywords: Trust formation; risk sharing; experiment; Bangladesh
JEL: C91 D12