Bounded rationality leads to equilibrium of public goods games

Zhaojin Xu, Zhen Wang, Lianzhong Zhang

Research output: Contribution to journalArticlepeer-review

35 Scopus citations

Abstract

In this work, we introduce a degree of rationality to the public goods games in which players can determine whether or not to participate, and with it a new mechanism has been established. Existence of the bounded rationality would lead to a new equilibrium which differs from the Nash equilibrium and qualitatively explains the fundamental role of loners' payoff for maintaining cooperation. Meanwhile, it is shown how the potential strategy influences the players' decision. Finally, we explicitly demonstrate a rock-scissors-paper dynamics which is a consequence of this model.

Original languageEnglish
Article number061104
JournalPhysical Review E - Statistical, Nonlinear, and Soft Matter Physics
Volume80
Issue number6
DOIs
StatePublished - 4 Dec 2009
Externally publishedYes

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