Experiments in Interdependent Decision Making Under Uncertainty

Principal Investigator: 
Performance Period: 
October 2009 to September 2010
Commercialization Status: 
N/A
Abstract: 
This research proposal investigates behavior of individuals and groups as well as the performance of alternative procedures for determining what actions to take in interdependent security (IDS) games. IDS games are games with stochastic payoffs.  In IDS games, each participant or group must decide whether or not to mitigate its own risks; moreover, the risks also affect social welfare. Each participant knows that even if she fully protects herself by investing in a risk-reducing measure, she may still be subject to indirect losses by being contaminated by one of the other participants who chose not to invest in similar measures. There are three main thrusts of the proposed research program below:  
  • Controlled laboratory experiments on individual and group behavior
  • Experiments on performance of alternative decision rules
  • Designing risk management strategies