The Effect of Loss-Aversion on Strategic Behaviour of Players in Divergent Interest Tacit Coordination Games

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Abstract

Previous Experiments in the field of human behavior and game theory has shown that loss aversion has a major effect on players’ decisions in coordination problems. The overarching aim of our study was to model the effect of loss aversion on individual player behavior in divergent interest tacit coordination games. Based on a large-scale behavioral data we have designed a model predicting the total number of points players allocate to themselves as a result of increased penalty values in cases of non-coordination. Understanding the effect of loss aversion in case of divergent interest coordination problems on players’ behavior will allow us to better predict the human decision-making process and as a result, create more realistic algorithms for human-machine cooperation’s. Understanding the effect of loss aversion in the context of divergent interest tacit coordination games may enable the construction of better algorithms for human-machine interaction that could more accurately predict human decision behavior under uncertainty.

Original languageEnglish
Title of host publicationBrain Informatics - 13th International Conference, BI 2020, Proceedings
EditorsMufti Mahmud, Stefano Vassanelli, M. Shamim Kaiser, Ning Zhong
PublisherSpringer Science and Business Media Deutschland GmbH
Pages41-49
Number of pages9
ISBN (Print)9783030592769
DOIs
StatePublished - 2020
Event13th International Conference on Brain Informatics, BI 2020 - Padua, Italy
Duration: 19 Sep 202019 Sep 2020

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume12241 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference13th International Conference on Brain Informatics, BI 2020
Country/TerritoryItaly
CityPadua
Period19/09/2019/09/20

Keywords

  • Cognitive modeling
  • Decision making
  • Divergent interest
  • Loss aversion
  • Tacit coordination games

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