Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem

Abstract Situations where independent agents need to align their activities to achieve individually and socially beneficial outcomes are abundant, reaching from everyday situations like fixing a time for a meeting to global problems like climate change agreements. Often such situations can be descri...

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Autores principales: Arno Riedl, Ingrid M. T. Rohde, Martin Strobel
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Lenguaje:EN
Publicado: Nature Portfolio 2021
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Acceso en línea:https://doaj.org/article/6d95953cd3a64e2d90af371e1a42106c
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spelling oai:doaj.org-article:6d95953cd3a64e2d90af371e1a42106c2021-12-02T18:15:45ZFree neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem10.1038/s41598-021-87019-y2045-2322https://doaj.org/article/6d95953cd3a64e2d90af371e1a42106c2021-04-01T00:00:00Zhttps://doi.org/10.1038/s41598-021-87019-yhttps://doaj.org/toc/2045-2322Abstract Situations where independent agents need to align their activities to achieve individually and socially beneficial outcomes are abundant, reaching from everyday situations like fixing a time for a meeting to global problems like climate change agreements. Often such situations can be described as stag-hunt games, where coordinating on the socially efficient outcome is individually optimal but also entails a risk of losing out. Previous work has shown that in fixed interaction neighborhoods agents’ behavior mostly converges to the collectively inefficient outcome. However, in the field, interaction neighborhoods often can be self-determined. Theoretical work investigating such circumstances is ambiguous in whether the efficient or inefficient outcome will prevail. We performed an experiment with human subjects exploring how free neighborhood choice affects coordination. In a fixed interaction treatment, a vast majority of subjects quickly coordinates on the inefficient outcome. In a treatment with neighborhood choice, the outcome is dramatically different: behavior quickly converges to the socially desirable outcome leading to welfare gains 2.5 times higher than in the environment without neighborhood choice. Participants playing efficiently exclude those playing inefficiently who in response change their behavior and are subsequently included again. Importantly, this mechanism is effective despite that only few exclusions actually occur.Arno RiedlIngrid M. T. RohdeMartin StrobelNature PortfolioarticleMedicineRScienceQENScientific Reports, Vol 11, Iss 1, Pp 1-12 (2021)
institution DOAJ
collection DOAJ
language EN
topic Medicine
R
Science
Q
spellingShingle Medicine
R
Science
Q
Arno Riedl
Ingrid M. T. Rohde
Martin Strobel
Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
description Abstract Situations where independent agents need to align their activities to achieve individually and socially beneficial outcomes are abundant, reaching from everyday situations like fixing a time for a meeting to global problems like climate change agreements. Often such situations can be described as stag-hunt games, where coordinating on the socially efficient outcome is individually optimal but also entails a risk of losing out. Previous work has shown that in fixed interaction neighborhoods agents’ behavior mostly converges to the collectively inefficient outcome. However, in the field, interaction neighborhoods often can be self-determined. Theoretical work investigating such circumstances is ambiguous in whether the efficient or inefficient outcome will prevail. We performed an experiment with human subjects exploring how free neighborhood choice affects coordination. In a fixed interaction treatment, a vast majority of subjects quickly coordinates on the inefficient outcome. In a treatment with neighborhood choice, the outcome is dramatically different: behavior quickly converges to the socially desirable outcome leading to welfare gains 2.5 times higher than in the environment without neighborhood choice. Participants playing efficiently exclude those playing inefficiently who in response change their behavior and are subsequently included again. Importantly, this mechanism is effective despite that only few exclusions actually occur.
format article
author Arno Riedl
Ingrid M. T. Rohde
Martin Strobel
author_facet Arno Riedl
Ingrid M. T. Rohde
Martin Strobel
author_sort Arno Riedl
title Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
title_short Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
title_full Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
title_fullStr Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
title_full_unstemmed Free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
title_sort free neighborhood choice boosts socially optimal outcomes in stag-hunt coordination problem
publisher Nature Portfolio
publishDate 2021
url https://doaj.org/article/6d95953cd3a64e2d90af371e1a42106c
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AT martinstrobel freeneighborhoodchoiceboostssociallyoptimaloutcomesinstaghuntcoordinationproblem
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