Reward and punishment in minigames

Sigmund, K., Hauert, C., & Nowak, M.A. (2001). Reward and punishment in minigames. Proceedings of the National Academy of Sciences 98 (19) 10757-10762. 10.1073/pnas.161155698.

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Minigames capturing the essence of Public Goods experiments show that even in the absence of rationality assumptions, both punishment and reward will fail to bring about prosocial behavior. This result holds in particular for the well-known Ultimatum Game, which emerges as a special case. But reputation can induce fairness and cooperation in populations adapting through learning or imitation. Indeed, the inclusion of reputation effects in the corresponding dynamical models leads to the evolution of economically productive behavior, with agents contributing to the public good and either punishing those who do not or rewarding those who do. Reward and punishment correspond to two types of bifurcation with intriguing complementarity. The analysis suggests that reputation is essential for fostering social behavior among selfish agents, and that it is considerably more effective with punishment than with reward.

Item Type: Article
Research Programs: Adaptive Dynamics Network (ADN)
Bibliographic Reference: PNAS; 98(19):10757-10762 (11 September 2001)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:13
Last Modified: 27 Aug 2021 17:17

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