reputation, incentives, and opportunism

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Reputation, incentives, and opportunism (with Christian Hilbe)

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Reputation, incentives, and opportunism. (with Christian Hilbe). Public Good game with positive or negative incentives Two players game for simplicity and to compare with Rand, Armao, Nakamaru and Ohtsuki (2010). Public goods with punishment. 2-Stage Game. 2 Stage Game. - PowerPoint PPT Presentation

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Page 1: Reputation, incentives, and opportunism

Reputation, incentives, and opportunism

(with Christian Hilbe)

Page 2: Reputation, incentives, and opportunism

Public Good game with positive or

negative incentives

Two players game for simplicity and to compare with Rand, Armao, Nakamaru and Ohtsuki (2010)

Page 3: Reputation, incentives, and opportunism

Public goods with punishment

)mostly and

, assume (we

cost at fine :punishment a

:player -co toincentivedeliver can player Second,

ccost at

player -co tob help providecan player First,

bc

Page 4: Reputation, incentives, and opportunism

2-Stage Game

P] [D, N], [D, P], [C, N],[C, strategies 4

Nor P stage, secondIn

Dor C stage,first In

Page 5: Reputation, incentives, and opportunism

2 Stage Game

Page 6: Reputation, incentives, and opportunism

Conditional Strategies

manifolds invariant

)()()()(

4231

42

31

4231

xKxxx

constxx

xx

MxMxMxMx

Page 7: Reputation, incentives, and opportunism

Punishment unstable

Page 8: Reputation, incentives, and opportunism

Opportunistic Players

P] ,[O N], ,[O P], ,[O N],,[O strategies 4

Nor P stage, secondIn

Oor O stage,first In

)1:(

P)or (Nplayer -co of typeknowsplayer that prob.

DDCC

DC

Page 9: Reputation, incentives, and opportunism
Page 10: Reputation, incentives, and opportunism

Bistability

[OC,P]

Page 11: Reputation, incentives, and opportunism

Role of reputation in Punishment

Punishment as deterrent

Page 12: Reputation, incentives, and opportunism

Role of reputation in Punishment

Punishment as deterrent

Revenge economically useful

Page 13: Reputation, incentives, and opportunism

Role of reputation in Punishment

Punishment as deterrent

Revenge economically useful

Revenge is sweet (=fitness-enhancing)

Anger is loud

Page 14: Reputation, incentives, and opportunism

Role of reputation in Punishment

Punishment as deterrent

Revenge economically useful

Revenge is sweet (=fitness-enhancing)

Anger is loud

Barclay (‚Don‘t mess with the enforcer‘)

Page 15: Reputation, incentives, and opportunism

Role of reputation in Punishment

Punishment as deterrent

Revenge economically useful

Revenge is sweet (=fitness-enhancing)

Anger is loud

Barclay (‚Don‘t mess with the enforcer‘)

Non-altruistic punishment

Page 16: Reputation, incentives, and opportunism

Role of reputation in Punishment

Punishment as deterrent

Revenge economically useful

Revenge is sweet (=fitness-enhancing)

Anger is loud

Barclay (‚Don‘t mess with the enforcer‘)

Non-altruistic punishment

Kurzban et al, Suter: ‚Audience effects‘

Page 17: Reputation, incentives, and opportunism

Similarity with Ultimatum

Page 18: Reputation, incentives, and opportunism

Similarity with Ultimatum

• Ultimatum with orwithout reputation

• (Fehr andFischbacher, Nature 2004)

Page 19: Reputation, incentives, and opportunism

The feeling of being watched

‚Conscience…the nagging feeling that someone may be watching‘

(Mencken)

Page 20: Reputation, incentives, and opportunism

The feeling of being watched

Subliminal cues:

Fessler, Haley

Bateson et al

Ancestral environment

Page 21: Reputation, incentives, and opportunism

Public goods with reward

for efficiency low

,

cost at benefit

:reward adeliver can player Second,

bccost at

player -co tob help providecan player First,

bc

Page 22: Reputation, incentives, and opportunism

Trust game

Page 23: Reputation, incentives, and opportunism

Trust game with reputation

Page 24: Reputation, incentives, and opportunism

Trust game with reputation

For large mu,

prosocial behavior

Page 25: Reputation, incentives, and opportunism

Reward and Punishment

defects) O doubt; of casein cooperates O(

O and O types two:players ticOpportunis

AllD and AllC players nalUnconditio

:stagefirst in types4

N :neither do I,both do P,Punish R, Reward

:stage secondin moves 4

:Extension

DC

DC

Page 26: Reputation, incentives, and opportunism

Payoff

Page 27: Reputation, incentives, and opportunism

Results:

],[],[],[ON][AllD,

:smaller for

],[],[],[ON][AllD,

:larger for pathway

if catalyses ],[

wins],[

D

D

POROR

POPON

bRO

PO

CC

CD

D

C

Page 28: Reputation, incentives, and opportunism

The case of high information (μ=0.75)

Page 29: Reputation, incentives, and opportunism

The case of low information (μ=0.25)

Page 30: Reputation, incentives, and opportunism
Page 31: Reputation, incentives, and opportunism
Page 32: Reputation, incentives, and opportunism

Antisocial Punishment

)(with

nothingpunish :N

(spite) everythingpunish : S

l)(antisocian Cooperatiopunish :A

Defectionpunish :P :stage Second

O ,O AllD, AllC, :stageFirst DC

Page 33: Reputation, incentives, and opportunism

Antisocial punishment

• Rand, Armao, Nakamaru, Ohtsuki (JTB 2010)

• Localised interaction:

Social life in groups of N+1 individuals

(introduces spite effects)

Modified replicator equation (or z-dynamics)

Page 34: Reputation, incentives, and opportunism

Antisocial Punishment

high nor too

low oneither to fine if evolves ],O[

) (if Sor

) (if Nby dominated weakly isA

dominated weakly AllD AllC,

C P

N

N

Page 35: Reputation, incentives, and opportunism
Page 36: Reputation, incentives, and opportunism
Page 37: Reputation, incentives, and opportunism