MoL-2013-28: Towards Closed-World Reasoning in Games - Ultimatum Game Revisited

MoL-2013-28: Xue, YunQi (2013) Towards Closed-World Reasoning in Games - Ultimatum Game Revisited. [Report]

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The Ultimatum Game (UG) is one of the widely studied games in
experimental economics. Past data shows a consistent deviation from the
classical game theory prediction, which suggests a self-interested money
maximizing rational agent would accept any nonzero offer as a responder.
However, in reality, people often reject low offers that are less than
30% and above zero. Research from neuro-economics claims that such
behavior is mostly emotion driven. However an important cross-cultural
study shows that the results in these small-scaled societies deviate
drastically from the industrialized societies. In addition, there is a
high correlation between the deviations and the social systems.
Economists call for a better understanding of how people apply social
rules when they make economic decision.

We believe that we need a framework that can show the following:
1. Preferences are constructed on demand. 2. Social rules are numerous
and complex, and tend to trigger non-monotonic reasoning.

Formally, we developed the Closed-World Reasoning in Games framework
(CWRiG) adopted from Closed-World Reasoning framework (CWR) by van
Lambalgen and Stenning. We defined what can be considered a monotone
game process. More importantly we show how an agent can make a rational
decision change through a non-monotonic reasoning process that brings
social rules into the game process.

Experimentally, we ran a modified ultimatum game. The results confirms
that people's general, even ranked, attitudes towards some social
matters are not necessarily equivalent to their preferences of the same
kind of matter during the game. We also discover many instances of
non-monotonic reasoning patterns used during the game.

Item Type: Report
Report Nr: MoL-2013-28
Series Name: Master of Logic Thesis (MoL) Series
Year: 2013
Uncontrolled Keywords: Game theory, Non-monotonic logic, Rationality
Subjects: Logic
Date Deposited: 12 Oct 2016 14:38
Last Modified: 12 Oct 2016 14:38

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