Rank-dependent choice equilibrium. This project aims to develop and test a new statistical theory of games, Rank-Dependent Choice Equilibrium (RDCE), which has the potential to unify and improve on existing approaches where the extreme reliance on perfect decision making and perfect foresight has raised doubts about their empirical relevance. The project intends to develop the theoretical foundations of RDCE, explore its relation with various parametric approaches, and evaluate RDCE via meta stu ....Rank-dependent choice equilibrium. This project aims to develop and test a new statistical theory of games, Rank-Dependent Choice Equilibrium (RDCE), which has the potential to unify and improve on existing approaches where the extreme reliance on perfect decision making and perfect foresight has raised doubts about their empirical relevance. The project intends to develop the theoretical foundations of RDCE, explore its relation with various parametric approaches, and evaluate RDCE via meta studies and stress tests. Expected outcomes of RDCE include a paradigm shift in game theory, resulting in broader acceptance and adoption of statistical game theory and to more robust policy recommendations.Read moreRead less
Designing Efficient and Equitable Voting Mechanisms. The most commonly used method for collective decision making, majority voting, is generally not efficient as it does not allow voters to express the intensity of their preferences. In addition, majority voting suffers from the tyranny of the majority, i.e. the risk of repeatedly excluding minority groups from representation. A final downside of majority voting is its winner-take-all nature, i.e. it provides no compensation for losing voters. T ....Designing Efficient and Equitable Voting Mechanisms. The most commonly used method for collective decision making, majority voting, is generally not efficient as it does not allow voters to express the intensity of their preferences. In addition, majority voting suffers from the tyranny of the majority, i.e. the risk of repeatedly excluding minority groups from representation. A final downside of majority voting is its winner-take-all nature, i.e. it provides no compensation for losing voters. This project concerns the design of alternative mechanisms that avoid these shortcomings and robustly deliver efficient and equitable outcomes. The project develops the theory underlying these novel mechanisms, tests them in a range of environments, and delivers an implementation for practical use.
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Introspection, Learning, and Equilibrium in Games: Theory and Experiment. Game theory is increasingly being used in the social sciences, but the extreme reliance on perfect decision making and perfect foresight has raised doubts about its empirical relevance. This scepticism is reinforced by laboratory evidence showing behaviour patterns that are systematically biased away from game-theoretic predictions. This project concerns the development and testing of models more descriptive of actual huma ....Introspection, Learning, and Equilibrium in Games: Theory and Experiment. Game theory is increasingly being used in the social sciences, but the extreme reliance on perfect decision making and perfect foresight has raised doubts about its empirical relevance. This scepticism is reinforced by laboratory evidence showing behaviour patterns that are systematically biased away from game-theoretic predictions. This project concerns the development and testing of models more descriptive of actual human behaviour. One aim is to deliver hybrid models able to reproduce interesting patterns of first-period play (introspection), time-series data in repeated games (learning), and systematic departures from static equilibrium. Another aim is to apply a successful hybrid to improve the design of economic and social institutions.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE210101085
Funder
Australian Research Council
Funding Amount
$323,692.00
Summary
Stability of Multilateral Agreements and the Limits to Cooperation. This project aims to analyze the stability of multilateral agreements. This is expected to be done by building upon the cooperative approach in game theory that focuses on groups as the primary decision makers. Moving the unit of analysis from an individual to a group has the advantage of widening the applicability of game theoretic methods to social issues. Consequently, the project is expected to enhance our understanding of h ....Stability of Multilateral Agreements and the Limits to Cooperation. This project aims to analyze the stability of multilateral agreements. This is expected to be done by building upon the cooperative approach in game theory that focuses on groups as the primary decision makers. Moving the unit of analysis from an individual to a group has the advantage of widening the applicability of game theoretic methods to social issues. Consequently, the project is expected to enhance our understanding of how and why cooperation can be sustained in some of the most pressing challenges faced by the society today that require extensive international collaboration to overcome, such as environmental change, trade disputes, and arms-control.
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Resilient Democracy for the 21st Century. This project will establish novel foundational theoretical frameworks for the design of democratic institutions that can withstand internal and external pressure towards autocratisation. It will develop state of the art dynamic models of information manipulation and political dynamics, and analyse large-scale online survey experiments, as well as contemporary and historical data. This combination will deliver new insights into the management of sensitive ....Resilient Democracy for the 21st Century. This project will establish novel foundational theoretical frameworks for the design of democratic institutions that can withstand internal and external pressure towards autocratisation. It will develop state of the art dynamic models of information manipulation and political dynamics, and analyse large-scale online survey experiments, as well as contemporary and historical data. This combination will deliver new insights into the management of sensitive information and how to protect democracy from information manipulation. Ultimately, the project will generate a body of theoretical and empirical evidence for the design of more effective and resilient democratic institutions for a more inclusive economic development. Read moreRead less
Choice and Classification in complex and adversarial environments. Any policy must take account of individuals' incentives to strategically manipulate. Mechanism Design is an area of economic theory that addresses precisely this. In its theoretical development however, it overlooks practical constraints for monitoring behavior. For instance, for fraud detection and credit scoring, automated statistical machine learning models discussed in computer science (CS) are used. Here, we constrain ....Choice and Classification in complex and adversarial environments. Any policy must take account of individuals' incentives to strategically manipulate. Mechanism Design is an area of economic theory that addresses precisely this. In its theoretical development however, it overlooks practical constraints for monitoring behavior. For instance, for fraud detection and credit scoring, automated statistical machine learning models discussed in computer science (CS) are used. Here, we constrain monitoring strategies to be such algorithms and address the monitoring of a population of individuals or a similarly constrained large adversary. Notable cross disciplinary implications exist forRead moreRead less
A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest- ....A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. This project is also expected to contribute to the discussions on how to improve corporate governance and regulation of management compensation both in Australia and abroad. Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE120102640
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
Behavioural foundations of economic design for an uncertain world. The aim of this project is to incorporate behavioural foundations into mechanism design to improve our understanding of economic institutions in incomplete information environments. To accomplish this goal, it considers a framework where agents have reference-dependent preferences and explores implications of this assumption for economic design.
An Economic Analysis of Bankruptcy and Financial Reorganization in Australia. We examine the question of whether the new Australian bankruptcy law is too lenient on firms in financial trouble. We will assemble detailed economic data on a large number of bankrupt firms and use the data to measure the performance of the Australian bankruptcy system. The outcome will be a more complete understanding of how bankruptcy law saves viable firms and eliminates inefficient firms. The project will assist p ....An Economic Analysis of Bankruptcy and Financial Reorganization in Australia. We examine the question of whether the new Australian bankruptcy law is too lenient on firms in financial trouble. We will assemble detailed economic data on a large number of bankrupt firms and use the data to measure the performance of the Australian bankruptcy system. The outcome will be a more complete understanding of how bankruptcy law saves viable firms and eliminates inefficient firms. The project will assist policy-makers designing bankruptcy law. The national benefit will be a bankruptcy system that balances the need to give innovating entrepreneurs a second chance against the danger of
encouraging too many unprofitable firms to limp on and waste
resources.Read moreRead less
Strategic Thought and Prediction in Strategic Environments. Game theory is now an integral tool for economics and business. It helps predict behavior in strategic environments and thus answers important questions: What form of auction to use in the pending sale of 3G spectrum? How should the government sell its bonds? How to detect implict collusion among companies? What division of benefits of joint research ventures will attract maximum participation?
This project aims to greatly increas ....Strategic Thought and Prediction in Strategic Environments. Game theory is now an integral tool for economics and business. It helps predict behavior in strategic environments and thus answers important questions: What form of auction to use in the pending sale of 3G spectrum? How should the government sell its bonds? How to detect implict collusion among companies? What division of benefits of joint research ventures will attract maximum participation?
This project aims to greatly increase the predictive power of game theory and provide decisive answers to questions such as above. This is achieved by developing a theory that relates individuals' current behavior to their experiences in analogous environments in the past.
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