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Re: the handicap principle baseball55

Posted by alexandra_k on March 27, 2018, at 1:00:18

In reply to Re: the handicap principle, posted by baseball55 on March 22, 2018, at 18:21:45

> Don't know. How do the games work? I'm familiar with the ultimatum game.

I guess these are part of... Behavioural Economics? I'm not sure. I was wondering whether these sorts of games feature in Economics 101 type classes, or whether they are more of a niche sort of thing. Or maybe they are more of a feature of other fields (more or less) standard curriculums? Politics? Marketing?

I've encountered them mostly in the context of simple models of the evolution of altruism. Or population dynamics in response to different proportions of starting strategies (e.g., t*t for tat with co-operative bias etc). To get at whether people will punish others cheating / defecting (at personal cost to self). Whether people will cheat (if they think they can get away with it). Etc.

Right now I have an interest in whether people should play certain sorts of games...

Game 1: you put in $1, I put in $1, we both get back $1.50. If we choose to play the world has 'added value' (lets say) in that $1 was created. The distribution of value was equitable (50c each). Mutual co-operative benefit.

Game 2: you put in $1, I put in $1, you get back $3 and I get back nothing. The world has the same 'added value' as before in that $1 was created. The distribution of value was unequitable, however. There is a sense in which I am worse off (relatively) even though (objectively) the world is better.

And I suppose I can go on to describe a whole bunch of games to try and get at trade-offs between adding / subtracting from the total / overall value in the world and increasing and decreasing the equitable distribution.

I'm interested in ideas around 'increasing diversity is good for us all' and 'we should be equitable to those of x race or disability or whatever 'equity group' (because of why, again?)

But I don't want to reinvent the wheel... So I thought I'd ask you if you knew of these sorts of games (in case you were like 'oh, yeah, we teach all our first years x and y and z about that sort of thing'.




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