Risk attitudes and the stag-hunt game

Büyükboyacı, Mürüvvet

doi:10.1016/j.econlet.2014.06.019

Cited by 25 publications

(18 citation statements)

References 10 publications

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“…In the fully cooperative stag-hunt game, for example, both players' overall goals can be assumed to be aligned given the cooperative setup. Therefore, motivational variables tend to be less important in this scenario, but uncertainty emerges from individuals' risk aversion (Büyükboyacı, 2014). However, these tasks do not present participants with uncertain environmental contexts or include uneven distribution of information between agents.…”

Section: Tom Processes In Interactive Gamesmentioning

confidence: 99%

Theory of mind and decision science: Towards a typology of tasks and computational models

et al. 2020

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This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

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Section: Tom Processes In Interactive Gamesmentioning

confidence: 99%

Theory of mind and decision science: Towards a typology of tasks and computational models

et al. 2020

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“…In both social and business interactions parties always endeavour to learn the other party's characteristics in order to create their own expectations regarding their behaviour (Büyükboyacı, 2014). As a result, over the decades, scholars have developed interest in how situational variances and individual characteristics affect how entrepreneurs assess risk issues (McCarthy, Puffer &Lamin, 2018;Mohseni, Jayashree, Rezaei, Kasim & Okumus, 2018;Lude & Prügl, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Risk Attitude, Risk Perception and Risk Management Strategies Adoption in Zimbabwean Small and Medium Enterprises

Munyanyi¹,

Chimwai²

2019

TR1010

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This study seeks to investigate the influence of both perceived risks and risk attitude on the decision by entrepreneurs to adopt risk management strategies.Risk management remains central to the day to day operations of small and medium enterprises, as these constantly need to mitigate risks such as frauds, delinquencies, liquidity and staff turnover. To empirically test a conceptual model of the relationship between the independent variables and the dependent variable, structural equation modelling was employed. A five-point Likert scale questionnaire was used to collect data from 288 small and medium enterprises, while to analyse the data and confirm the existence and strength of conceptualised relationships, a confirmatory factor analysis and a structural equation analysis were conducted. The results of the study provided rather a disparity from the general stereotypical perception about small and medium enterprises, that they largely seek and embrace risk and that they are poorly ranked in terms of risk management adoption. The findings of the study confirm that both perceived risk and risk attitude have a positive and significant relationship to the adoption of risk management strategies by entrepreneurs. In order to enhance adoption of risk management strategies by SMEs, it is important that the perceptions of owners and managers with regard to the probability of occurrence, possibility of impact and severity of impact of a risk event, must be altered.

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“…The effect of risk attitudes on cooperation in the stag-hunt game is investigated in behavioural economics tasks [47][48][49] in which the risk attitude of subjects is determined by subjects' choice behaviour when deciding between risky and safe lotteries. In these studies, it was found that subjects' risk attitude does not predict their cooperation in the staghunt game, although players consider information about the other player's risk attitude.…”

Section: Discussionmentioning

confidence: 99%

The effect of model uncertainty on cooperation in sensorimotor interactions

Grau-Moya

Hez

Pezzulo³

et al. 2013

J. R. Soc. Interface.

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Decision-makers have been shown to rely on probabilistic models for perception and action. However, these models can be incorrect or partially wrong in which case the decision-maker has to cope with model uncertainty. Model uncertainty has recently also been shown to be an important determinant of sensorimotor behaviour in humans that can lead to risk-sensitive deviations from Bayes optimal behaviour towards worst-case or best-case outcomes. Here, we investigate the effect of model uncertainty on cooperation in sensorimotor interactions similar to the stag-hunt game, where players develop models about the other player and decide between a pay-off-dominant cooperative solution and a risk-dominant, non-cooperative solution. In simulations, we show that players who allow for optimistic deviations from their opponent model are much more likely to converge to cooperative outcomes. We also implemented this agent model in a virtual reality environment, and let human subjects play against a virtual player. In this game, subjects' pay-offs were experienced as forces opposing their movements. During the experiment, we manipulated the risk sensitivity of the computer player and observed human responses. We found not only that humans adaptively changed their level of cooperation depending on the risk sensitivity of the computer player but also that their initial play exhibited characteristic risksensitive biases. Our results suggest that model uncertainty is an important determinant of cooperation in two-player sensorimotor interactions.

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Risk attitudes and the stag-hunt game

Cited by 25 publications

References 10 publications

Theory of mind and decision science: Towards a typology of tasks and computational models

Theory of mind and decision science: Towards a typology of tasks and computational models

Risk Attitude, Risk Perception and Risk Management Strategies Adoption in Zimbabwean Small and Medium Enterprises

The effect of model uncertainty on cooperation in sensorimotor interactions

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