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In the last few decades, numerous experiments have shown that humans do not always behave so as to maximize their material payoff. Cooperative behavior when non-cooperation is a dominant strategy (with respect to the material payoffs) is particularly puzzling. Here we propose a novel approach to explain cooperation, assuming what Halpern and Pass call translucent players. Typically, players are assumed to be opaque, in the sense that a deviation by one player in a normal-form game does not affect the strategies used by other players. But a player may believe that if he switches from one strategy to another, the fact that he chooses to switch may be visible to the other players. For example, if he chooses to defect in Prisoners Dilemma, the other player may sense his guilt. We show that by assuming translucent players, we can recover many of the regularities observed in human behavior in well-studied games such as Prisoners Dilemma, Travelers Dilemma, Bertrand Competition, and the Public Goods game.
A traditional assumption in game theory is that players are opaque to one another -- if a player changes strategies, then this change in strategies does not affect the choice of other players strategies. In many situations this is an unrealistic assu
Matrix games like Prisoners Dilemma have guided research on social dilemmas for decades. However, they necessarily treat the choice to cooperate or defect as an atomic action. In real-world social dilemmas these choices are temporally extended. Coope
Groups of humans are often able to find ways to cooperate with one another in complex, temporally extended social dilemmas. Models based on behavioral economics are only able to explain this phenomenon for unrealistic stateless matrix games. Recently
Theoretical models suggest that social networks influence the evolution of cooperation, but to date there have been few experimental studies. Observational data suggest that a wide variety of behaviors may spread in human social networks, but subject
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