Cooperation through useful delusions: quasi-magical thinking and subjective utility

GoBoardEconomists that take bounded rationality seriously treat their research like a chess game and follow the reductive approach: start with all the pieces — a fully rational agent — and kill/capture/remove pieces until the game ends, i.e. see what sort of restrictions can be placed on the agents to deviate from rationality and better reflect human behavior. Sometimes these restrictions can be linked to evolution, but usually the models are independent of evolutionary arguments. In contrast, evolutionary game theory has traditionally played Go and concerned itself with the simplest agents that are only capable of behaving according to a fixed strategy specified by their genes — no learning, no reasoning, no built in rationality. If egtheorists want to approximate human behavior then they have to play new stones and take a constructuve approach: start with genetically predetermined agents and build them up to better reflect the richness and variety of human (or even other animal) behaviors (McNamara, 2013). I’ve always preferred Go over chess, and so I am partial to the constructive approach toward rationality. I like to start with replicator dynamics and work my way up, add agency, perception and deception, ethnocentrism, or emotional profiles and general condition behavior.

Most recently, my colleagues and I have been interested in the relationship between evolution and learning, both individual and social. A key realization has been that evolution takes cues from an external reality, while learning is guided by a subjective utility, and there is no a priori reason for those two incentives to align. As such, we can have agents acting rationally on their genetically specified subjective perception of the objective game. To avoid making assumptions about how agents might deal with risk, we want them to know a probability that others will cooperate with them. However, this depends on the agent’s history and local environment, so each agent should learn these probabilities for itself. In our previous presentation of results we concentrated on the case where the agents were rational Bayesian learners, but we know that this is an assumption not justified by evolutionary models or observations of human behavior. Hence, in this post we will explore the possibility that agents can have learning peculiarities like quasi-magical thinking, and how these peculiarities can co-evolve with subjective utilities.
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