William Tracy, Asst. Prof., Lally School of Mngt. & Tech. RPI

 

William Tracy, Asst. Prof., Lally School of Mngt. & Tech. RPI

Sage 4101

March 18, 2009 12:00 PM - 1:30 PM

ABSTRACT:

This talk will broadly address the use of evolutionary algorithms in models of non-cooperative, intra-group, strategic decision-making. The discussion will highlight results from a recent experiment applying co- evolutionary algorithms to Selten's Chain Store Paradox (see paper).

The classical game theoretic resolution to this paradox is unsatisfactory; it alters the game to avoid the paradox, yet still fails to organize the existing experimental data. When co- evolutionary algorithms are applied to Selten's Chain Store game, the resulting system's dynamics are neither intuitively paradoxical, nor contradicted by the existing experimental data. This has implications for real world entrant-incumbent strategy decisions. The role of strategy deterioration, or genetic drift, in facilitating the system's dynamics is also noteworthy. The efficacy of co-evolutionary algorithms in resolving the Chain Store Paradox supports their potential to improve strategic modeling.

Paradox Lost:  The Evolution of Strategies in Selten's Chain Store Game

Add to calendar
Share|