Stability in negotiation games and the emergence of cooperation.

Proc Biol Sci

Department of Mathematics and Statistics, Queen's University, Kingston, Ontario K7L 3N6, Canada.

Published: April 2004

AI Article Synopsis

  • The study examines a two-player game where both players contribute resources to a common good, focusing on how their contributions can reach a stable outcome, known as Nash equilibrium, where neither player benefits from changing their contribution alone.
  • It introduces a negotiation phase where players exchange offers until they agree on final contributions, revealing previously unnoticed neutrally stable equilibrium points that can influence player behavior.
  • Simulations indicate that, unlike prior expectations, the negotiation process can lead to higher levels of cooperation than the Nash equilibrium suggests, highlighting how negotiation can enhance cooperative behavior over time.

Article Abstract

Consider a two-player game in which each player contributes a costly resource to the common good of the pair. For such contests, the Nash equilibrium contribution, x*, is one for which neither player can increase its pay-off by unilaterally altering its contribution from x*. We study an elaboration of this game, which allows the players to exchange x-offers back and forth in a negotiation phase until they converge to a final pair of contributions, x1 and x2. A significant feature of such negotiation games, hitherto unrecognized, is the existence of a set of neutrally stable equilibrium points in negotiation phase space. To explore the long-term evolutionary outcome of such games, we simulate populations containing various mixtures of negotiation strategies and, contrary to previous results, we often find convergence to a contribution that is more cooperative than the Nash equilibrium. Mathematical analysis suggests why this might be happening, and provides a novel and robust explanation for cooperation, that negotiation can facilitate the evolution of cooperative behaviour.

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Source
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1691654PMC
http://dx.doi.org/10.1098/rspb.2003.2636DOI Listing

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