Dynamic Volunteer's Dilemmas, Unique Bid Auctions, and Discrete Bottleneck Games: Theory and Experiments

Persistent Link:
http://hdl.handle.net/10150/194255
Title:
Dynamic Volunteer's Dilemmas, Unique Bid Auctions, and Discrete Bottleneck Games: Theory and Experiments
Author:
Otsubo, Hironori
Issue Date:
2008
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
The main theme of my dissertation is the analysis of several interactive decision making situations with multiple decision makers whose interests do not fully coincide. Non-cooperative game theory is invoked to carry on this analysis.The first chapter describes an experimental study of volunteer's dilemmas that evolve over time. Only a single volunteer is required for the public good to be provided. Because volunteering is costly, each prefers that some other players bear the full costs of volunteering. Reflecting on the observation that in many naturally occurring social dilemmas it is beneficial to volunteer earlier than later, I assume that the payoff to the volunteer and the (higher) payoff to each of the non-volunteers decrease monotonically over time. I derive symmetric and asymmetric subgame perfect equilibria. The experimental results provide little support to asymmetric equilibria in which only a single subject volunteers immediately. In comparison to the symmetric subgame perfect equilibrium, they show that subjects volunteer, on average, earlier than predicted.The second chapter explores a new type of online auction, called the unique bid auction, that has recently emerged on the Internet and gained widespread popularity in many countries. In a sharp contrast to traditional auctions, the winner in this class of auctions is the bidder who submits the lowest (highest) unique bid; all ties are discarded. I propose an algorithm to numerically compute the symmetric mixed-strategy Nash equilibrium solution and then conduct a series of experiments to assess the predictive power of the equilibrium solution. The experimental results show that the solution accounts quite well for the subjects' bidding behavior on the aggregate level, but not on the individual level.The last chapter proposes a discrete version of William Vickrey's model of traffic congestion on a single road with a single bottleneck. In my model, both the strategy space and number of commuters are finite. An algorithm similar to the one used in the second chapter is proposed to numerically calculate the symmetric mixed-strategy Nash equilibrium. The discrete model is then compared with the original continuous model of Vickrey in terms of the equilibrium solution and its implications.
Type:
text; Electronic Dissertation
Keywords:
Economics
Degree Name:
PhD
Degree Level:
doctoral
Degree Program:
Economics; Graduate College
Degree Grantor:
University of Arizona
Advisor:
Rapoport, Amnon
Committee Chair:
Rapoport, Amnon

Full metadata record

DC FieldValue Language
dc.language.isoENen_US
dc.titleDynamic Volunteer's Dilemmas, Unique Bid Auctions, and Discrete Bottleneck Games: Theory and Experimentsen_US
dc.creatorOtsubo, Hironorien_US
dc.contributor.authorOtsubo, Hironorien_US
dc.date.issued2008en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThe main theme of my dissertation is the analysis of several interactive decision making situations with multiple decision makers whose interests do not fully coincide. Non-cooperative game theory is invoked to carry on this analysis.The first chapter describes an experimental study of volunteer's dilemmas that evolve over time. Only a single volunteer is required for the public good to be provided. Because volunteering is costly, each prefers that some other players bear the full costs of volunteering. Reflecting on the observation that in many naturally occurring social dilemmas it is beneficial to volunteer earlier than later, I assume that the payoff to the volunteer and the (higher) payoff to each of the non-volunteers decrease monotonically over time. I derive symmetric and asymmetric subgame perfect equilibria. The experimental results provide little support to asymmetric equilibria in which only a single subject volunteers immediately. In comparison to the symmetric subgame perfect equilibrium, they show that subjects volunteer, on average, earlier than predicted.The second chapter explores a new type of online auction, called the unique bid auction, that has recently emerged on the Internet and gained widespread popularity in many countries. In a sharp contrast to traditional auctions, the winner in this class of auctions is the bidder who submits the lowest (highest) unique bid; all ties are discarded. I propose an algorithm to numerically compute the symmetric mixed-strategy Nash equilibrium solution and then conduct a series of experiments to assess the predictive power of the equilibrium solution. The experimental results show that the solution accounts quite well for the subjects' bidding behavior on the aggregate level, but not on the individual level.The last chapter proposes a discrete version of William Vickrey's model of traffic congestion on a single road with a single bottleneck. In my model, both the strategy space and number of commuters are finite. An algorithm similar to the one used in the second chapter is proposed to numerically calculate the symmetric mixed-strategy Nash equilibrium. The discrete model is then compared with the original continuous model of Vickrey in terms of the equilibrium solution and its implications.en_US
dc.typetexten_US
dc.typeElectronic Dissertationen_US
dc.subjectEconomicsen_US
thesis.degree.namePhDen_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineEconomicsen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorRapoport, Amnonen_US
dc.contributor.chairRapoport, Amnonen_US
dc.contributor.committeememberDufwenberg, Martinen_US
dc.contributor.committeememberWooders, Johnen_US
dc.identifier.proquest2807en_US
dc.identifier.oclc659749864en_US
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