Archivio per 17 giugno 2012

17
Giu
12

Behavioural Anomalies, Bounded Rationality and Simple Heuristics

See on Scoop.itBounded Rationality and Beyond

 The use of bounded rationality in explaining economic phenomena has attracted growing attention. In spite of this, there is still considerable disagreement regarding the meaning of bounded rationality. Basov (2005) argues that when modeling boundedly rational behaviour it is desirable to start with an explicit formulation of the learning process. A complete understanding of the boundedly rational decision-making process requires development of an evolutionary-dynamic model which can give rise to such learning processes. Evolutionary dynamics implies that individuals use heuristics to adjust their choices in light of past experiences, moving in the direction that appears most beneficial, where these adjustment rules are assumed ‘hardwired’ into human cognition through the process of biological evolution. In this paper we elaborate on the latter point by building a model of evolutionary selection relevant to heuristics. We show that in addition to explaining the origin of learning rules this approach also sheds light on some well documented preference anomalies.

See on ideas.repec.org

17
Giu
12

Behavioural Anomalies, Bounded Rationality and Simple Heuristics

See on Scoop.itBounded Rationality and Beyond

 The use of bounded rationality in explaining economic phenomena has attracted growing attention. In spite of this, there is still considerable disagreement regarding the meaning of bounded rationality.

See on ideas.repec.org

17
Giu
12

Behavioural Anomalies, Bounded Rationality and Simple Heuristics

See on Scoop.itBounded Rationality and Beyond

 The use of bounded rationality in explaining economic phenomena has attracted growing attention. In spite of this, there is still considerable disagreement regarding the meaning of bounded rationality.

See on ideas.repec.org

17
Giu
12

Bounded rationality: static versus dynamic approaches

See on Scoop.itBounded Rationality and Beyond

Two kinds of theories of boundedly rational behavior are possible. Static theories focus on stationary behavior and do not include any explicit mechanism for temporal change. Dynamic theories, on the other hand, explicitly model the fine-grain adjustments made by the subjects in response to their recent experiences. The main contribution of this paper is to argue that the restrictions usually imposed on the distribution of choices in the static approach are generically not supported by a dynamic adjustment mechanism. The genericity here is understood both in the measure theoretic and in the topological sense.

See on www.springerlink.com

17
Giu
12

Economic Theory, Volume 25, Number 4 – SpringerLink

See on Scoop.itBounded Rationality and Beyond

See on www.springerlink.com

17
Giu
12

If players are sparse social dilemmas are too: Importance of percolation for evolution of cooperation : Scientific Reports : Nature Publishing Group

See on Scoop.itBounded Rationality and Beyond

Spatial reciprocity is a well known tour de force of cooperation promotion. A thorough understanding of the effects of different population densities is therefore crucial.

See on www.nature.com

17
Giu
12

Cooperation and the evolution of intelligence

See on Scoop.itBounded Rationality and Beyond

The high levels of intelligence seen in humans, other primates, certain cetaceans and birds remain a major puzzle for evolutionary biologists, anthropologists and psychologists. It has long been held that social interactions provide the selection pressures necessary for the evolution of advanced cognitive abilities (the ‘social intelligence hypothesis’), and in recent years decision-making in the context of cooperative social interactions has been conjectured to be of particular importance.

 

Here we use an artificial neural network model to show that selection for efficient decision-making in cooperative dilemmas can give rise to selection pressures for greater cognitive abilities, and that intelligent strategies can themselves select for greater intelligence, leading to a Machiavellian arms race. Our results provide mechanistic support for the social intelligence hypothesis, highlight the potential importance of cooperative behaviour in the evolution of intelligence and may help us to explain the distribution of cooperation with intelligence across taxa.

See on rspb.royalsocietypublishing.org

17
Giu
12

The organization of strong links in complex networks

See on Scoop.itBounded Rationality and Beyond

Many complex systems reveal a small-world topology, which allows simultaneously local and global efficiency in the interaction between system constituents. Here, we report the results of a comprehensive study that investigates the relation between the clustering properties in such small-world systems and the strength of interactions between its constituents, quantified by the link weight. For brain, gene, social and language networks, we find a local integrative weight organization in which strong links preferentially occur between nodes with overlapping neighbourhoods; we relate this to global robustness of the clustering to removal of the weakest links. Furthermore, we identify local learning rules that establish integrative networks and improve network traffic in response to past traffic failures. Our findings identify a general organization for complex systems that strikes a balance between efficient local and global communication in their strong interactions, while allowing for robust, exploratory development of weak interactions.

See on www.nature.com

17
Giu
12

The Structure of Mutations and the Evolution of Cooperation

See on Scoop.itBounded Rationality and Beyond

Evolutionary game dynamics in finite populations assumes that all mutations are equally likely, i.e., if there are n strategies a single mutation can result in any strategy with probability 1/n . However, in biological systems it seems natural that not all mutations can arise from a given state. Certain mutations may be far away, or even be unreachable given the current composition of an evolving population. These distances between strategies (or genotypes) define a topology of mutations that so far has been neglected in evolutionary game theory. In this paper we re-evaluate classic results in the evolution of cooperation departing from the assumption of uniform mutations. We examine two cases: the evolution of reciprocal strategies in a repeated prisoner’s dilemma, and the evolution of altruistic punishment in a public goods game. In both cases, alternative but reasonable mutation kernels shift known results in the direction of less cooperation. We therefore show that assuming uniform mutations has a substantial impact on the fate of an evolving population. Our results call for a reassessment of the “model-less” approach to mutations in evolutionary dynamics.

See on www.plosone.org

17
Giu
12

Closing the Eyes on a Gloomy Future: Psychological Causes and Economic Consequences

See on Scoop.itBounded Rationality and Beyond

This paper analyzes the impact of economic prospects on one’s time preference. Research in psychol- ogy has shown how individuals modify their preferences in order to reduce their cognitive dissonance, which is the uncomfortable tension felt when simultaneously holding conflicting thoughts. It occurs among the poor when simultaneously caring about their future welfare while having gloomy economic prospects. Hence closing their eyes on the future can reduce their psychological distress at the cost of worsening their future economic wellbeing. This paper offers a new theoretical approach that decom- poses time discounting and analyzes the endogenous determination of one’s time horizon. The model predicts that, below a certain wealth, the time horizon of an individual is decreasing in poverty, result- ing in a behavioral poverty trap. The prediction is tested using data from a randomized experiment in Mozambique, which confirms that the beneficiaries of an agro-input subsidy and a matched savings intervention increased their planning horizon as a result of their improved economic prospects.

See on ageconsearch.umn.edu




Time is real? I think not

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