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Do Humans Play Equilibrium? Modeling Human Behavior in Computational Strategic Systems

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Gali NotiAuthors Info & Claims

XRDS: Crossroads, The ACM Magazine for Students, Volume 24, Issue 1

Pages 29 - 33

https://doi.org/10.1145/3123740

Published: 14 September 2017 Publication History

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Abstract

Online auctions and other computational strategic systems where human users interact are usually analyzed based on the assumptions that the users are rational and reach an equilibrium. This article shows that these modeling assumptions lead to significant errors, and that using behaviorally appropriate assumptions is important for achieving credible predictions in such systems.

References

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Noti, G., Nisan, N., and Yaniv, I. An experimental evaluation of bidders' behavior in ad auctions. In Proceedings of the 23rd International Conference on World Wide Web, WWW '14. ACM, New York, 2014, 619--630.

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Blum, A. and Mansour, Y. Learning, regret minimization, and equilibria. In Algorithmic Game Theory. Cambridge University Press, Cambridge, 2007.

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Nisan, N. and Noti, G. A "quantal regret" method for structural econometrics in repeated games. In Proceedings of the Eighteenth ACM Conference on Economics and Computation, EC '17. 2017.

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Index Terms

Do Humans Play Equilibrium? Modeling Human Behavior in Computational Strategic Systems
1. Applied computing
  1. Electronic commerce
    1. Online auctions
  2. Law, social and behavioral sciences
    1. Economics
    2. Psychology
2. Theory of computation
  1. Theory and algorithms for application domains
    1. Algorithmic game theory and mechanism design
      1. Algorithmic game theory
      2. Computational pricing and auctions

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 14 September 2017

Published in XRDS Volume 24, Issue 1

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Recommendations

An equilibrium analysis of trading across multiple double auction marketplaces using fictitious play

Incentives for strategic behavior in Fisher market games

Strategic behavior in online reputation systems: evidence from revoking on eBay

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