Normative game theory unsatisfactorily explains rational behavior. Real people do not behave as predicted, and what is prescribed as rational behavior is normally unattainable in real-life. The problem is that current normative analysis does not account for people's cognitive limitations – their bounded rationality. However, this paper develops an account of bounded rationality that explains the rationality of more realistic behavior. I focus on the Centipede Game, in which boundedly rational players explore and test others' immediate behavior, until they can (...) apply limited backward induction. The result is that the game has a solution in the form of a subjective Nash equilibrium, which boundedly rational players can possibly realize. (shrink)

Spite (in the biological or evolutionary sense) is behavior that harms others at a cost to the actor. The presence of spite in human and animal populations presents an evolutionary puzzle. Recent work has suggested small populations and pre-play signaling can have a significant effect on the evolution of spite. Here, we use computational methods to explore these factors in fluctuating populations that may go extinct. We find that the presence of spite can make a population significantly more likely to (...) go extinct, but that this does not preclude the possibility of spite reliably evolving. Additionally, we find that the stochastic effects of small fluctuating populations allow for the evolution and predominance of signal-mediated conditional spite across a wide range of conditions. These results suggest that directed harm, even if costly, can play a significant early role in the evolution of social behaviors and this provides a possible origin for punishment. (shrink)

We identify a novel ‘cultural red king effect’ that, in many cases, results in stable arrangements which are to the detriment of minority groups. In particular, we show inequalities disadvantaging minority groups can naturally arise under an adaptive process when minority and majority members must routinely determine how to divide resources amongst themselves. We contend that these results show how inequalities disadvantaging minorities can likely arise by dint of their relative size and need not be a result of either explicit (...) nor implicit prejudices, nor due to intrinsic differences between minority and majority members. (shrink)

At the very end of the 19th century, Gabriele Tarde wrote that all society was a product of imitation and innovation. This view regarding the development of society has, to a large extent, fallen out of favour, and especially so in those areas where the rational actor model looms large. I argue that this is unfortunate, as models of imitative learning, in some cases, agree better with what people actually do than more sophisticated models of learning. In this paper, I (...) contrast the behaviour of imitative learning with two more sophisticated learning rules (one based on Bayesian updating, the other based on the Nash-Brown-von Neumann dynamics) in the context of social deliberation problems. I show for two social deliberation problems, the Centipede game and a simple Lewis sender-receiver game, that imitative learning provides better agreement with what people actually do, thus partially vindicating Tarde. (shrink)