Game Theory and Human Behavior: Challenges in Security and Sustainability
Security and sustainability are two critical global challenges that involve the interaction of many intelligent actors. Game theory provides a sound mathematical framework to model such interactions, and computational game theory in particular has a promi
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Abstract. Security and sustainability are two critical global challenges that involve the interaction of many intelligent actors. Game theory provides a sound mathematical framework to model such interactions, and computational game theory in particular has a promising role to play in helping to address key aspects of these challenges. Indeed, in the domain of security, we have already taken some encouraging steps by successfully applying game-theoretic algorithms to real-world security problems: our algorithms are in use by agencies such as the US coast guard, the Federal Air Marshals Service, the LAX police and the Transportation Security Administration. While these applications of game-theoretic algorithms have advanced the state of the art, this paper lays out some key challenges as we continue to expand the use of these algorithms in real-world domains. One such challenge in particular is that classical game theory makes a set of assumptions of the players, which may not be consistent with real-world scenarios, especially when humans are involved. To actually model human behavior within game-theoretic framework, it is important to address the new challenges that arise due to the presence of human players: (i) human bounded rationality; (ii) limited observations and imperfect strategy execution; (iii) large action spaces. We present initial solutions to these challenges in context of security games. For sustainability, we lay out our initial efforts and plans, and key challenges related to human behavior in the loop. Keywords: Decision-making, Human Behavior, Game Theory, Security, Sustainability.
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Introduction
Many of today’s critical national and global challenges involve interactions of large numbers of different agents (individuals, large and small corporations, government agencies). A key challenge in solving these problems is to model and analyze the strategic interactions among these multiple intelligent agents, with their different goals, strategies and capabilities. Game theory provides a fundamental tool to understand and analyze such challenges. The goal of this paper is to point to some research issues in computational game theory as they relate to two such global challenges: security and sustainability. These are massive world challenges, and as such the paper only focuses on R.I. Brafman, F. Roberts, and A. Tsouki` as (Eds.): ADT 2011, LNAI 6992, pp. 320–330, 2011. c Springer-Verlag Berlin Heidelberg 2011
Game Theory and Human Behavior
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limited aspects of these challenges. The key thrust of the research issues we focus on is in the fusion of computational game theory and models of human behavior. More specifically, classical game theory makes assumptions on human behavior – such as perfect and infallible rationality, the ability to perfectly observe and perfectly execute strategies – that are not consistent with real-world scenarios. Indeed, it is well understood that humans are bounded in their computational abilities or may reach ”irrational” decisions due to other reasons [16,2]. In bo
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