Experimental studies show that the Nash equilibrium and its refinements are poor predictors of behavior in non-cooperative strategic games. Cooperation models, such as ERC and inequality aversion, yield superior predictions compared to the standard game theory predictions. However, those models...

Reciprocal cooperation can be studied in the Centipede game, in which two players alternate in choosing between a cooperative GO move and a non-cooperative STOP move. GO sustains the interaction and increases the player pair's total payoff while incurring a small personal cost; STOP terminates...

We study evolutionary dynamics in a population of individuals engaged in pairwise social interactions, encoded as iterated games. We consider evolution within the space of memory-1strategies, and we characterize all evolutionary robust outcomes, as well as their tendency to evolve under the...

We consider three-sided coalition formation problems when each agent is concerned about his local status as measured by his relative rank position within the group of his own type and about his global status as measured by the weighted sum of the average rankings of the other types of groups. We...

We study the recursive core introduced in Huang and Sjöström [8]. In general partition function form games, the recursive core coalition structure may be either coarser or finer than the one that maximizes the social surplus. Moreover, the recursive core structure is typically different from...

Explaining human cooperation in large groups of non-kin is a major challenge to both rational choice theory and the theory of evolution. Recent research suggests that group cooperation can be explained by positing that cooperators can punish non-cooperators or cheaters. The experimental evidence...

Human social networks reshape continuously, as individuals forge new contacts while abandoning existing ones. Simultaneously, individuals adapt their behavior, leading to an intricate interplay been network evolution and behavior evolution. Here, we review a framework, called Active Linking,...

This article surveys studies on universally balanced properties of cooperative games defined in a succinct form. In particular, we focus on combinatorial optimization games in which the values to coalitions are defined through linear optimization programs, possibly combinatorial, that is subject...

We analyze dynamic local interaction in population games where the local interaction structure (modeled as a graph) can change over time: A stochastic process generates a random sequence of graphs. This contrasts with models where the initial interaction structure (represented by a deterministic...

This paper provides a new way to identify conditional cooperation in a real-time version of the standard voluntary contribution mechanism. We define contribution cycles as the number of contributors a player waits for before committing to a further contribution, and use a permutation test on...