Friday, May 21, 2010

bradytombrack

The first known use is to describe how human populations behave. Some scholars believe that by finding the equilibria of games they can predict how actual human populations will behave when confronted with situations analogous to the game being studied. This particular view of game theory has come under recent criticism. First, it is criticized because the assumptions made by game theorists are often violated. Game theorists may assume players always act in a way to directly maximize their wins (the Homo economicus model), but in practice, human behavior often deviates from this model. Explanations of this phenomenon are many; irrationality, new models of deliberation, or even different motives (like that of altruism). Game theorists respond by comparing their assumptions to those used in physics. Thus while their assumptions do not always hold, they can treat game theory as a reasonable scientific ideal akin to the models used by physicists. However, additional criticism of this use of game theory has been levied because some experiments have demonstrated that individuals do not play equilibrium strategies. For instance, in the centipede game, guess 2/3 of the average game, and the dictator game, people regularly do not play Nash equilibria. There is an ongoing debate regarding the importance of these experiments.



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