Strategically influencing an uncertain futureGovaert, A. & Cao, M., 22-Jul-2020, In : Scientific Reports. 10, 1, 8 p., 12169.
Research output: Contribution to journal › Article › Academic › peer-review
Many of today’s most pressing societal concerns require decisions which take into account a distant and uncertain future. Recent developments in strategic decision-making suggest that individuals, or a small group of individuals, can unilaterally influence the collective outcome of such complex social dilemmas. However, these results do not account for the extent to which decisions are moderated by uncertainty in the probability or timing of future outcomes that characterise the valuation of a (distant) uncertain future. Here we develop a general framework that captures interactions among uncertainty, the resulting time-inconsistent discounting, and their consequences for decision-making processes. In deterministic limits, existing theories can be recovered. More importantly, new insights are obtained into the possibilities for strategic influence when the valuation of the future is uncertain. We show that in order to unilaterally promote and sustain cooperation in social dilemmas, decisions of generous and extortionate strategies should be adjusted to the level of uncertainty. In particular, generous payoff relations cannot be enforced during periods of greater risk (which we term the “generosity gap”), unless the strategic enforcer orients their strategy towards a more distant future by consistently choosing “selfless” cooperative decisions; likewise, the possibilities for extortion are directly limited by the level of uncertainty. Our results have implications for policies that aim to solve societal concerns with consequences for a distant future and provides a theoretical starting point for investigating how collaborative decision-making can help solve long-standing societal dilemmas.
|Number of pages||8|
|Publication status||Published - 22-Jul-2020|
- DELAYED REWARDS, LIFE-SPAN, GAMES, PROBABILITY, COOPERATION, PERFORMANCE, RECIPROCITY
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