Agents in Economic Markets and Games
159
– mall my strategy: Contains mall id, current strategy, scene id
– my goods sold: Contains mall id, goods, scene id
– my price: Contains mall id, price, scene id
• Datatypes:
– mall strategy: Contains output[7], score, predicted score
– person strategy: Contains output[5], score, predicted score
6.5 Programming Games
Neumann and Morgenstern’s work [199] pioneered interdisciplinary research in game theory, using concepts of expected utility to explain a person’s ‘betting preferences’ with regard to uncertain outcomes in a gaming
situation. The authors also described the concept of rationality by comparing economic situations with the Robinson Crusoe model, where the system’s
complete economy is led by one individual who is responsible for all rules imposed in a closed isolated system. The objective of the individual is to perform
tasks and impose rules which would eventually maximize their own benefit.
However, the model ignored factors such as weather, savages or crops which
would eventually influence the decisions made. Weighing these factors can
be introduced through probabilities of their influence on economic decision
outcomes.
Departing from the idea of a single individual is the concept of social economy, which involves more than one individual interacting with others, in turn
presenting a different sets of challenges to the economy. The social interaction
provides individuals with more or limited information, through their networks,
who can then make decisions based on this for their own benefit. The strategies used in each situation, and by each individual, are different, working to
find a maxima for the individual performing in the situation. This maxima
or maximum value represents the utility or the performance of the variable
being optimized through the strategies. With this argument, each individual
would behave rationally to maximize their utility and choose the most optimum strategy in the situation. However, in reality, recent work has argued
the influence of cognitive psychology, bias and chance on rational decisions in
economic scenarios such as in the works of McFadden [130] and Kahnemann
[99].
159
– mall my strategy: Contains mall id, current strategy, scene id
– my goods sold: Contains mall id, goods, scene id
– my price: Contains mall id, price, scene id
• Datatypes:
– mall strategy: Contains output[7], score, predicted score
– person strategy: Contains output[5], score, predicted score
6.5 Programming Games
Neumann and Morgenstern’s work [199] pioneered interdisciplinary research in game theory, using concepts of expected utility to explain a person’s ‘betting preferences’ with regard to uncertain outcomes in a gaming
situation. The authors also described the concept of rationality by comparing economic situations with the Robinson Crusoe model, where the system’s
complete economy is led by one individual who is responsible for all rules imposed in a closed isolated system. The objective of the individual is to perform
tasks and impose rules which would eventually maximize their own benefit.
However, the model ignored factors such as weather, savages or crops which
would eventually influence the decisions made. Weighing these factors can
be introduced through probabilities of their influence on economic decision
outcomes.
Departing from the idea of a single individual is the concept of social economy, which involves more than one individual interacting with others, in turn
presenting a different sets of challenges to the economy. The social interaction
provides individuals with more or limited information, through their networks,
who can then make decisions based on this for their own benefit. The strategies used in each situation, and by each individual, are different, working to
find a maxima for the individual performing in the situation. This maxima
or maximum value represents the utility or the performance of the variable
being optimized through the strategies. With this argument, each individual
would behave rationally to maximize their utility and choose the most optimum strategy in the situation. However, in reality, recent work has argued
the influence of cognitive psychology, bias and chance on rational decisions in
economic scenarios such as in the works of McFadden [130] and Kahnemann
[99].