Bargaining over strategies of non-cooperative games

We propose a bargaining process supergame over the strategies to play in a non-cooperative game. The agreement reached by players at the end of the bargaining process is the strategy profile that they will play in the original non-cooperative game. We analyze the subgame perfect equilibria of this supergame, and its implications on the original game. We discuss existence, uniqueness, and efficiency of the agreement reachable through this bargaining process. We illustrate the consequences of applying such a process to several common two-player non-cooperative games: the Prisoner’s Dilemma, the Hawk-Dove Game, the Trust Game, and the Ultimatum Game. In each of them, the proposed bargaining process gives rise to Pareto-efficient agreements that are typically different from the Nash equilibrium of the original games.

Brain substrates of social decision-making in dual diagnosis: cocaine dependence and personality disorders

Cocaine dependence frequently co-occurs with personality disorders, leading to increased interpersonal problems and greater burden of disease. Personality disorders are characterised by patterns of thinking and feeling that divert from social expectations. However, the comorbidity between cocaine dependence and personality disorders has not been substantiated by measures of brain activation during social decision-making. We applied functional magnetic resonance imaging to compare brain activations evoked by a social decision-making task-the Ultimatum Game-in 24 cocaine dependents with personality disorders (CDPD), 19 cocaine dependents without comorbidities and 19 healthy controls. In the Ultimatum Game participants had to accept or reject bids made by another player to split monetary stakes. Offers varied in fairness (in fair offers the proposer shares ~50 percent of the money; in unfair offers the proposer shares <30 percent of the money), and participants were told that if they accept both players get the money, and if they reject both players lose it. We contrasted brain activations during unfair versus fair offers and accept versus reject choices. During evaluation of unfair offers CDPD displayed lower activation in the insula and the anterior cingulate cortex and higher activation in the lateral orbitofrontal cortex and superior frontal and temporal gyri. Frontal activations negatively correlated with emotion recognition. During rejection of offers CDPD displayed lower activation in the anterior cingulate cortex, striatum and midbrain. Dual diagnosis is linked to hypo-activation of the insula and anterior cingulate cortex and hyper-activation of frontal-temporal regions during social decision-making, which associates with poorer emotion recognition.

Gender as a moderator of the fair process effect

This paper examines gender as a moderator of the fair-process effect in an ultimatum game setting. Results from games with 112 German high-school students support the hypothesis that fair procedures can decrease rejection behavior in unfair human allocation decisions. Furthermore, procedural fairness results in a statistically significant difference for women in accepting an unfair distribution. In contrast, procedural fairness appears to have no significant impact on men’s rejection behavior. However, we found no significant gender differences in the perception of procedural fairness. We conclude that, although men perceive procedural fairness similarly to women, this aspect is less important for determining their subsequent behavior. (PsycINFO Database Record (c) 2013 APA, all rights reserved)

Diminishing reciprocal fairness by disrupting the right prefrontal cortex.

Humans restrain self-interest with moral and social values. They are the only species known to exhibit reciprocal fairness, which implies the punishment of other individuals' unfair behaviors, even if it hurts the punisher's economic self-interest. Reciprocal fairness has been demonstrated in the Ultimatum Game, where players often reject their bargaining partner's unfair offers. Despite progress in recent years, however, little is known about how the human brain limits the impact of selfish motives and implements fair behavior. Here we show that disruption of the right, but not the left, dorsolateral prefrontal cortex (DLPFC) by low-frequency repetitive transcranial magnetic stimulation substantially reduces subjects' willingness to reject their partners' intentionally unfair offers, which suggests that subjects are less able to resist the economic temptation to accept these offers. Importantly, however, subjects still judge such offers as very unfair, which indicates that the right DLPFC plays a key role in the implementation of fairness-related behaviors.

Ansiedade social e cooperação em contexto de hierarquia social

The Ultimatum Game is a methodology of the Game Theory that intends to investigate the individuals cooperative behavior in situations of resources division. Studies have shown that half of the subjects don’t accept unfair division of resources, and prefer to bear a momentary cost to revenge the deceivers. However, people who have assertiveness impairment, such as social phobic individuals, could have some difficulties to reject unfair offer division resource, especially in situations that cause over anxiety, like being in the presence of an individual considered to be in a high hierarchical level. A negative perception about his own worth can also make the person thinks that he does not deserve a fair division. These individuals also have a strong desire to convey a positive impression to the others, which could cause them to be more generous in a resource division. The aim of this study was to verify, through the Ultimatum Game, if social anxiety individuals would accept more high confederate’s unfair offers that low confederate’s unfair offers; and if they would be more generous in goods division, in the same game, when compared to individuals without social anxiety. Ninety-five (95) college students participated in this study answering the Social Phobia Inventory, the Factorial Scale of Extroversion, socio-demographic questionnaire, situational anxiety scale and, finally, the Ultimatum Game in four rounds (1st and 3rd – confederate representing high or low ranking using an unfair proposal; 2nd – confederate without social status using fair proposal; 4th – subject’s research proposes the offer). The results showed a significant negative correlation between social anxiety and haughtiness, and social anxiety and assertiveness, and a significant positive correlation between social anxiety and situational anxiety. There was no significant difference in situational anxiety due to the status for anxious individuals. Also we found no significant difference in the amount of donated goods, showing that generous behavior does not differ between groups. Finally, the social status did not influence the decision in response to the game for anxious individuals. These results corroborate to other studies that show the relationship between social anxiety and assertiveness, and social anxiety and negative self-perception capability and value (low haughtiness). As show the results of situational anxiety scale, the high status stimulus was not perceived as threatening to the individual, which may have affected his answer in the game. The results for the Ultimatum Game follow the same direction as the acceptance rate for unfair proposals (approximately 50%) in studies with non-clinical sample.

Ansiedade social e cooperação em contexto de hierarquia social

The Ultimatum Game is a methodology of the Game Theory that intends to investigate the individuals cooperative behavior in situations of resources division. Studies have shown that half of the subjects don’t accept unfair division of resources, and prefer to bear a momentary cost to revenge the deceivers. However, people who have assertiveness impairment, such as social phobic individuals, could have some difficulties to reject unfair offer division resource, especially in situations that cause over anxiety, like being in the presence of an individual considered to be in a high hierarchical level. A negative perception about his own worth can also make the person thinks that he does not deserve a fair division. These individuals also have a strong desire to convey a positive impression to the others, which could cause them to be more generous in a resource division. The aim of this study was to verify, through the Ultimatum Game, if social anxiety individuals would accept more high confederate’s unfair offers that low confederate’s unfair offers; and if they would be more generous in goods division, in the same game, when compared to individuals without social anxiety. Ninety-five (95) college students participated in this study answering the Social Phobia Inventory, the Factorial Scale of Extroversion, socio-demographic questionnaire, situational anxiety scale and, finally, the Ultimatum Game in four rounds (1st and 3rd – confederate representing high or low ranking using an unfair proposal; 2nd – confederate without social status using fair proposal; 4th – subject’s research proposes the offer). The results showed a significant negative correlation between social anxiety and haughtiness, and social anxiety and assertiveness, and a significant positive correlation between social anxiety and situational anxiety. There was no significant difference in situational anxiety due to the status for anxious individuals. Also we found no significant difference in the amount of donated goods, showing that generous behavior does not differ between groups. Finally, the social status did not influence the decision in response to the game for anxious individuals. These results corroborate to other studies that show the relationship between social anxiety and assertiveness, and social anxiety and negative self-perception capability and value (low haughtiness). As show the results of situational anxiety scale, the high status stimulus was not perceived as threatening to the individual, which may have affected his answer in the game. The results for the Ultimatum Game follow the same direction as the acceptance rate for unfair proposals (approximately 50%) in studies with non-clinical sample.

Heart beats and economic decisions : Observing mental stress in the ultimatum bargaining game

One aim of experimental economics is to try to better understand human economic decision making. Early research of the ultimatum bargaining game (Gueth et al., 1982) revealed that other motives than pure monetary reward play a role. Neuroeconomic research has introduced the recording of physiological observations as signals of emotional responses. In this study, we apply heart rate variability (HRV) measuring technology to explore the behaviour and physiological reactions of proposers and responders in the ultimatum bargaining game. Since this technology is small and non-intrusive, we are able to run the experiment in a standard experimental economic setup. We show that low o�ers by a proposer cause signs of mental stress in both the proposer and the responder, as both exhibit high ratios of low to high frequency activity in the HRV spectrum.

Heartbeat and economic decisions : observing mental stress among proposers and responders in the ultimatum bargaining game

The ultimatum bargaining game (UBG), a widely used method in experimental economics, clearly demonstrates that motives other than pure monetary reward play a role in human economic decision making. In this study, we explore the behaviour and physiological reactions of both responders and proposers in an ultimatum bargaining game using heart rate variability (HRV), a small and nonintrusive technology that allows observation of both sides of an interaction in a normal experimental economics laboratory environment. We find that low offers by a proposer cause signs of mental stress in both the proposer and the responder; that is, both exhibit high ratios of low to high frequency activity in the HRV spectrum.

When social accounts work: evidence from ultimatum games

This paper examines the mitigating effect of social accounts on retaliatory behavior in a miniultimatum game setting. Results from games with 108 German high school students support the hypothesis that an ex ante informational and sensitive message can decrease an individuals’ negative perception of an unfair offer and increase the acceptance of the outcome. Furthermore, the moderating effect of gender on retaliatory behavior is investigated. We show that an informational and sensitive message makes more of a difference for women in accepting unfair distributions than it does for men.

Meaning in movement : a gestural design game

This paper describes a design game that we called 'Meaning in Movement'. The purpose was to explore notions of professional dental practice with dental practioners in terms of gestures, actions and movements. The game represents a first step towards involving gestures, actions and movements in a design dialog with practioners for the purpose of designing future interactive systems which are more appropriate to the type of skilful actions and richly structured environments of dentists and dental assistants.

Talking about watching : using the video card game and wiki-web technology to engage IT students in developing observational skills.

Designers need to develop good observational skills in order to conduct user studies that reveal the subtleties of human interactions and adequately inform design activity. In this paper we describe a game format that we have used in concert with wiki-web technology, to engage our IT and Information Environments students in developing much sharper observational skills. The Video Card Game is a method of video analysis that is suited to design practitioners as well as to researchers. It uses the familiar format of a card game similar to "Happy Families,, to help students develop themes of interactions from watching video clips. Students then post their interaction themes on wiki-web pages, which allows the teaching team and other students to edit and comment on them. We found that the tangible (cards), game, role playing and sharing aspects of this method led to a much larger amount of interaction and discussion between student groups and between students and the teaching team, than we have achieved using our traditional teaching methods, while taking no more time on the part of the teaching staff. The quality of the resulting interaction themes indicates that this method fosters development of observational skills.In the paper we describe the motivations, method and results in full. We also describe the research context in which we collected the videotape data, and how this method relates to state of the art research methods in interaction design for ubiquitous computing technology.

A collaborative digestion and design game for community and technology exploration

In this paper, we present interim results from the Communities and Place project, which is exploring methods for understanding communities in a variety of contexts, and how to inform the design of technology to support them. We report on our experience with adapting an existing game-based approach for working with video as a resource in participatory design processes. Our adaptations allow the approach to be used with diverse data arising out of the different communities we are engaged with, and different design traditions we approach the problem from, leading to the formation of common design themes to inform our future work on this project.