Task 8 - Cooperation

Question 1

Game Theory

Answer 1

Analysis of interactions between rational agents

• > each have two or more strategies available
• assumes people gravitate towards rational solutions as they gain experience

Question 2

Behavioral Game Theory

Answer 2

Study of how people actually behave in interactive situations

Question 3

Trust Game

Answer 3

Someone gets 10$, gives a certain amount to trustee, whose money gets multiplied
-> observed how much money is invested (given) and how much money is given back

Question 4

Outcomes of Trust Game

Answer 4

Western: gave half, got 95% of invested amount back
Kenya: investment lower, return also much less than initial investment (50%)
-> possible reason: more insecure economy

Question 5

Ultimatum Game

Answer 5

Two participants bargain over amount of money (e.g. 10$)

• > proposer has to offer some proportion of money to responder
• > if responder accepts offer: they get to keep it, proposer keeps rest
• > if responder rejects offer, neither party gets to keep money

Question 6

Outcomes of Ultimatum Game

Answer 6

Prediction of analytical game theory: responder accepts any amount, minimum amount proposed

• > actual results: median offers: 40-50% of money
  mean: 30-40%
• > offers of 40-50% accepted, below 20% rejected half of time

Question 7

Prisoner’s Dilemma

Answer 7

Game situation:

• two people arrested, can’t communicate,
• no one confesses: both get less than 1 year
• one snitches: no prison, but the other 10
• both snitch: both get 5

Question 8

Nash Equilibrium

Answer 8

Combination of strategies where it makes no sense for one player to deviate from his strategy
-> e.g. joint defection in prisoner’s dilemma

Question 9

Public Goods Game

Answer 9

Resource allocation task;

• individuals given endowment, then given option to contribute some, all, or none of it to a pool of resources
• > after round: whats in pool of resources increased
• collectively rational: contribute
• individually rational: withhold contributions

Question 10

Guessing Game

Answer 10

Pick number assumed to be average from what all participants would choose from 0-100, then half of that

• > expectations chosen, then taking half of it
• > level k-thinking

Question 11

Tit for tat

Answer 11

Cooperation strategy:

starting off with cooperation, then always copying the others moves

Question 12

Tit for two tat

Answer 12

Cooperation strategy;

starting off with cooperation, the copying others moves but always forgiving once

Question 13

Tit for tat +1

Answer 13

Cooperation strategy;

starting off with cooperation, forgiving the first time you are defected, after that always copying what the other did

Question 14

Values affecting behavior in social dilemma:

Answer 14

Social value orientation:
-prosocial
-individualist
-competitors
Counterfactual thinking

Question 15

Prosocial value orientation

Answer 15

Want to maximize joint gain and equality in outcomes

-associated with secure attachment style and more siblings

Question 16

Individualist value orientation

Answer 16

Interested only in maximizing own gains

Question 17

Competitors

Answer 17

Want to maximize relative gain

-> difference between own’s and other’s outcome

Question 18

Upward counterfactual thinking

Answer 18

“it could have been better”

• > more cooperative behavior in second half of game
• > mostly by prosocial people, least by competitive people

Question 19

Downward counterfactual thinking

Answer 19

“it could have been worse”

-> associated with more defective behavior in second half

Question 20

Social dilemma values acquisition

Answer 20

Often learned;
e.g. economic majors more likely to free-ride, astonomy class showed greater honesty

Question 21

Trust

Answer 21

Willingness to accept vulnerability based on positive expectations about another’s behavior

• > cooperation possibly increased when trust is increased
• > trust more likely with good reputation

Question 22

Generosity

Answer 22

Breaking down of cooperation by noise can be avoided with generosity

Question 23

Noise

Answer 23

Erroneous responses in game

e. g. defecting by accident
- > can lead to never-ending cycle of retaliaiton

Question 24

Communication

Answer 24

Can eliminate detrimental effects of noise on cooperation

• > with communication as much trust from low trusters as high trusters after noise
• > better communication: better cooperation

Question 25

Emotions

Answer 25

Psychological states comprised of multiple related processes:

• cognitive appraisals,
• physiological responses
• behavioral action tendencies
• phenomenological experience of feelings

Question 26

Appraisal Theory

Answer 26

Emotions as adaptive responses based on appraisal of situation

• > appraisals related to motivational goals of agent
• > appraisals as cognitive antecedents to experience of emotion

Question 27

Guilt in social dilemmas

Answer 27

Can encourage trust and cooperation in social interactions

-guilt aversion: belief-dependent guilt enables cooperation

Question 28

Value and emotional interplay in cooperation

Answer 28

Players want to maximize material payoffs and minimize aversive psychological payoffs (e.g. disappointing a partner)

Question 29

Anger in social dilemmas

Answer 29

Feelings of anger motivate decisions to punish a transgressor

Question 30

Greed and Economics Education

Answer 30

Economics education consistently associated with positive attitudes towards greed

Question 31

Dictator Game

Answer 31

“Dictator” determines how to split endowment between him and second player
-> recipient has no influence over outcome of the game

Question 32

Right DLPFC

Answer 32

when inhibited (TMS): more acceptance of unfair offers
-> only acceptance impacted

Question 33

vmPFC

Answer 33

lesions: rejection of ultimatum game offers more frequently

- > responsible for perceived weight of not accepting

Question 34

Caudate nucleus

Answer 34

Active when learning about outcomes

Question 35

Oxytocin

Answer 35

Dampens amygdala activity

-increases trust