An Economics-Inspired Noise Model in Spatial Games with Reputation

Abstract

Games are useful mathematical constructs to model real-world problems involving strategic interactions in various contexts such as politics, economics, and biology. Understanding specific conditions that lead to cooperation between self-interested individuals is an important issue in the study of real-world interactions. Although noisy and spatial interactions have been incorporated into models of complex interactions to better reflect those found in the real-world, most past studies consider simple extensions whereby interactions between all individuals are equally noisy. Here, we study a novel economics-inspired noise model based on the notion of psychicdistance that reflects real-world interactions. The psychicnoise that affects interactions between individuals depends on their psychic distance (e.g., cultural difference). Results from extensive computer simulations using a multi-agent system framework to investigate the impact of various constructions of noisy interactions indicate that noise typically has a negative impact on cooperation. However, a certain condition produces results reminiscent of the psychicdistanceparadox, where an increase in the noise level leads to an increase in the level of cooperation.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.School of Computer ScienceUniversity of NottinghamJalan BrogaMalaysia

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