IDEAS home Printed from https://ideas.repec.org/a/spr/decisn/v50y2023i2d10.1007_s40622-023-00354-z.html
   My bibliography  Save this article

Implications of (un)awareness for decision-making in strategic interaction: another take on the Prisoner’s dilemma

Author

Listed:
  • Katarina Kostelić

    (Juraj Dobrila University of Pula)

Abstract

Focusing on the behavior and outcomes, Prisoner’s dilemma research rarely encompasses the examination of the effects of (un)awareness. To bridge the research gap, the aim is to outline the deviations that stem from the (un)awareness and to assess its impact on the in-game reasoning, outcome, and modeling. More precisely, through a thought experiment, the overview conceptually encompasses the effects of (un)awareness of game elements (actions, players, and payoffs), differing between awareness in a narrow and broad sense. The deviations due to (un)awareness of game elements show how the game can deviate from the proposed model, whereby unawareness and skewed awareness of the players bear the most prominent differences. Compiling the most notable deviations provokes second thoughts on game theory modeling. The findings on each deviation are shortly discussed and extended to two practical examples to illustrate possible implications.

Suggested Citation

  • Katarina Kostelić, 2023. "Implications of (un)awareness for decision-making in strategic interaction: another take on the Prisoner’s dilemma," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(2), pages 251-268, June.
    • Handle: RePEc:spr:decisn:v:50:y:2023:i:2:d:10.1007_s40622-023-00354-z
    DOI: 10.1007/s40622-023-00354-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40622-023-00354-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40622-023-00354-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2013. "Dynamic unawareness and rationalizable behavior," Games and Economic Behavior, Elsevier, vol. 81(C), pages 50-68.
    2. Miettinen, Topi & Kosfeld, Michael & Fehr, Ernst & Weibull, Jörgen, 2020. "Revealed preferences in a sequential prisoners’ dilemma: A horse-race between six utility functions," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 1-25.
    3. Jehiel, Philippe, 1998. "Repeated games and limited forecasting," European Economic Review, Elsevier, vol. 42(3-5), pages 543-551, May.
    4. Franziska Neumann, 2017. "Antecedents and effects of emotions in strategic decision-making: a literature review and conceptual model," Management Review Quarterly, Springer, vol. 67(3), pages 175-200, June.
    5. Martin Meier & Burkhard Schipper, 2014. "Bayesian games with unawareness and unawareness perfection," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 219-249, June.
    6. Gao, Liyan & Pan, Qiuhui & He, Mingfeng, 2021. "Environmental-based defensive promotes cooperation in the prisoner’s dilemma game," Applied Mathematics and Computation, Elsevier, vol. 401(C).
    7. Francesca Gino & Michael I. Norton & Roberto A. Weber, 2016. "Motivated Bayesians: Feeling Moral While Acting Egoistically," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 189-212, Summer.
    8. Piermont, Evan, 2017. "Introspective unawareness and observable choice," Games and Economic Behavior, Elsevier, vol. 106(C), pages 134-152.
    9. Li, Jing, 2009. "Information structures with unawareness," Journal of Economic Theory, Elsevier, vol. 144(3), pages 977-993, May.
    10. Tingwei Jiang & Huicong Fang, 2020. "The influence of user interface design on task performance and situation awareness in a 3-player diner's dilemma game," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-14, March.
    11. Katarina Kostelić, 2021. "Game Awareness: A Questionnaire," Games, MDPI, vol. 12(4), pages 1-39, December.
    12. Cason, Timothy N. & Lau, Sau-Him Paul & Mui, Vai-Lam, 2019. "Prior interaction, identity, and cooperation in the Inter-group Prisoner's Dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 613-629.
    13. Halpern, Joseph Y. & Rego, Leandro Chaves, 2008. "Interactive unawareness revisited," Games and Economic Behavior, Elsevier, vol. 62(1), pages 232-262, January.
    14. Mikaël Cozic, 2016. "Probabilistic Unawareness," Games, MDPI, vol. 7(4), pages 1-24, November.
    15. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2006. "Interactive unawareness," Journal of Economic Theory, Elsevier, vol. 130(1), pages 78-94, September.
    16. Robert J. Aumann, 1999. "Interactive epistemology I: Knowledge," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(3), pages 263-300.
    17. Katarina Kostelic, 2020. "Guessing the Game: An Individual’s Awareness and Assessment of a Game’s Existence," Games, MDPI, vol. 11(2), pages 1-28, March.
    18. Rubinstein, Ariel, 1991. "Comments on the Interpretation of Game Theory," Econometrica, Econometric Society, vol. 59(4), pages 909-924, July.
    19. Feinberg, Yossi, 2005. "Subjective reasoning--solutions," Games and Economic Behavior, Elsevier, vol. 52(1), pages 94-132, July.
    20. Yasuo Sasaki, 2017. "Generalized Nash equilibrium with stable belief hierarchies in static games with unawareness," Annals of Operations Research, Springer, vol. 256(2), pages 271-284, September.
    21. Leonardo Becchetti & Francesco Salustri, 2019. "The Vote with the Wallet Game: Responsible Consumerism as a Multiplayer Prisoner’s Dilemma," Sustainability, MDPI, vol. 11(4), pages 1-22, February.
    22. Mikaël Cozic, 2016. "Probabilistic Unawareness," Post-Print hal-01950702, HAL.
    23. Leandro Rêgo & Joseph Halpern, 2012. "Generalized solution concepts in games with possibly unaware players," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(1), pages 131-155, February.
    24. Lee, Natalie, 2023. "Feigning ignorance for long-term gains," Games and Economic Behavior, Elsevier, vol. 138(C), pages 42-71.
    25. Dolly Chugh & Max Bazerman, 2007. "Bounded awareness: what you fail to see can hurt you," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 6(1), pages 1-18, June.
    26. Zhu, Peican & Wang, Xiaoyu & Jia, Danyang & Guo, Yangming & Li, Shudong & Chu, Chen, 2020. "Investigating the co-evolution of node reputation and edge-strategy in prisoner's dilemma game," Applied Mathematics and Computation, Elsevier, vol. 386(C).
    27. Yi-Chun Chen & Jeffrey Ely & Xiao Luo, 2012. "Note on unawareness: Negative Introspection versus AU Introspection (and KU Introspection)," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(2), pages 325-329, May.
    28. Nikoleta E. Glynatsi & Vincent A. Knight, 2021. "A bibliometric study of research topics, collaboration, and centrality in the iterated prisoner’s dilemma," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-12, December.
    29. Chen, Wei & Wang, Jianwei & Yu, Fengyuan & He, Jialu & Xu, Wenshu & Wang, Rong, 2021. "Effects of emotion on the evolution of cooperation in a spatial prisoner’s dilemma game," Applied Mathematics and Computation, Elsevier, vol. 411(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Katarina Kostelić, 2021. "Game Awareness: A Questionnaire," Games, MDPI, vol. 12(4), pages 1-39, December.
    2. Galanis, Spyros, 2018. "Speculation under unawareness," Games and Economic Behavior, Elsevier, vol. 109(C), pages 598-615.
    3. Spyros Galanis, 2011. "Syntactic foundations for unawareness of theorems," Theory and Decision, Springer, vol. 71(4), pages 593-614, October.
    4. Schipper, Burkhard C, 2011. "Preference-Based Unawareness," MPRA Paper 30221, University Library of Munich, Germany.
    5. Perea, Andrés, 2022. "Common belief in rationality in games with unawareness," Mathematical Social Sciences, Elsevier, vol. 119(C), pages 11-30.
    6. Feinberg, Yossi, 2012. "Games with Unawareness," Research Papers 2122, Stanford University, Graduate School of Business.
    7. Gaia Belardinelli & Burkhard C. Schipper, 2023. "Implicit Knowledge in Unawareness Structures," Working Papers 360, University of California, Davis, Department of Economics.
    8. Schipper, Burkhard C., 2021. "Discovery and equilibrium in games with unawareness," Journal of Economic Theory, Elsevier, vol. 198(C).
    9. Spyros Galanis, 2013. "Unawareness of theorems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(1), pages 41-73, January.
    10. Katarina Kostelic, 2020. "Guessing the Game: An Individual’s Awareness and Assessment of a Game’s Existence," Games, MDPI, vol. 11(2), pages 1-28, March.
    11. Gossner, O. & Tsakas, E., 2010. "A reasoning approach to introspection and unawareness," Research Memorandum 006, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    12. Mikaël Cozic, 2016. "Probabilistic Unawareness," Post-Print hal-01950702, HAL.
    13. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2013. "Unawareness, beliefs, and speculative trade," Games and Economic Behavior, Elsevier, vol. 77(1), pages 100-121.
    14. Burkhard Schipper, 2011. "Preference-Dependent Unawareness," Working Papers 269, University of California, Davis, Department of Economics.
    15. Galanis, Spyros, 2007. "Unawareness of theorems," Discussion Paper Series In Economics And Econometrics 51816, Economics Division, School of Social Sciences, University of Southampton.
    16. Heinsalu, Sander, 2014. "Universal type structures with unawareness," Games and Economic Behavior, Elsevier, vol. 83(C), pages 255-266.
    17. Mikaël Cozic, 2016. "Probabilistic Unawareness," Games, MDPI, vol. 7(4), pages 1-24, November.
    18. Burkhard Schipper, 2013. "Awareness-dependent subjective expected utility," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(3), pages 725-753, August.
    19. Burkhard Schipper, 2010. "Revealed Unawareness," Working Papers 303, University of California, Davis, Department of Economics.
    20. Martin Meier & Burkhard Schipper, 2014. "Bayesian games with unawareness and unawareness perfection," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 219-249, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:decisn:v:50:y:2023:i:2:d:10.1007_s40622-023-00354-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.