08 - Volunteer's Dilemma Game

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The Volunteer Dilemma Game

The Volunteers Dilemma


(Mixed Strategies)

Simultaneously and independently, players have


to decide if they wish to volunteer (V) or not (N).

Volunteering incurs a personal cost (5 points) but


benefits everyone in the group (20 points).

Every group member benefits if at least one person


volunteers.
There is no additional benefit if there is more than one
volunteer in the group.

The payoff is 0 if no one volunteers in the group.

Nash Equilibrium

Nash Equilibrium

Consider a 2-person setup.

Can (V, V) be a (symmetric pure-strategy) N.E.?

Consider a 2-person setup.

No. One can increase his payoff from 15 to 20 if he deviates


from V to N.

Can (N, N) be a (symmetric pure-strategy) N.E.?

There are asymmetric pure-strategy N.E. in which one


person volunteers and the other does not: (V, N) and
(N, V).

No. One can increase his payoff from 0 to 15 if he deviates


from N to V.

Construct a payoff matrix and verify on your own.

There is a symmetric mixed-strategy N.E. in which


each person volunteers with a probability p*.

Nash Equilibrium (Symmetric)

Nash Equilibrium

Mixed strategy N.E. for N = 2

Consider a 4-person setup.

Each person must feel indifferent between


volunteering and refraining.

Expected payoff by choosing V = 20 5 = 15.


Expected payoff by choosing N

Find pure-strategy N.E. for a 4-person volunteers


dilemma game.
There exists a symmetric mixed-strategy N.E. in which
each person volunteers with a probability p*.

Depend on if the other person volunteers or not


Expected payoff = p 20 + (1 p) 0 = 20p.

In equilibrium: 15 = 20p or p* = 0.75.

Nash Equilibrium (Symmetric)

Nash Equilibrium (Symmetric)

Mixed strategy N.E. for N = 4

The Other Three Players

Each person must feel indifferent between


volunteering and refraining.

Player 1

Player 2

Player 3

Expected payoff by choosing V = 20 5 = 15.


Expected payoff by choosing N

Depend on if other players volunteer or not.

Nash Equilibrium (Symmetric)

Nash Equilibrium (Symmetric)

The Other Three Players


Player 1
ONE out of
three
volunteers

Player 2

The Other Three Players

Player 3

Player 1

p
p
p

ONE out of
three
volunteers

TWO out of
three
volunteer

Player 2

Player 3

p
p
p
p

Nash Equilibrium (Symmetric)

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Nash Equilibrium (Symmetric)

The Other Three Players


Player 1
ONE out of
three
volunteers

TWO out of
three
volunteer

ALL three
volunteer

Player 2

The Other Three Players

Player 3

Player 1

p
p
p
p
p
p

p
p

ONE out of
three
volunteers

TWO out of
three
volunteer

ALL three
volunteer

Player 2

Player 3

p
p
p
p
p
p

p
p

NO one
volunteers
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Nash Equilibrium (Symmetric)

Nash Equilibrium (Symmetric)

The Other Three Players

ONE out of
three
volunteers

The Other Three Players

Player 1

Player 2

Player 3

1p

1p

1p

1p

1p

1p

ONE out of
three
volunteers

Player 1

Player 2

Player 3

Joint Prob.1 (1p)3

1p

1p

p (1p)2

1p

1p

p (1p)2

1p

1p

p (1p)2

TWO out of
three
volunteer

1p

p2 (1p)

1p

p2 (1p)

1p

p2 (1p)

ALL three
volunteer

p3

1p

NO one
volunteers

1p

1p

1p

(1p)3

TWO out of
three
volunteer

1p

1p

1p

ALL three
volunteer

NO one
volunteers

1p

1p

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Nash Equilibrium (Symmetric)

Nash Equilibrium (Symmetric)

Mixed strategy N.E. for N = 4

Each person must feel indifferent between


volunteering and refraining.

Mixed strategy N.E.

Expected payoff by choosing V = 20 5 = 15.


Expected payoff by choosing N
the probability that no one

Depend on if other players volunteer or not. volunteers


Expected payoff = [1 (1 p)3] 20 + (1 p)3 0 = 20 [1 (1
p)3]. the probability that at least one of the three other players volunteers

N = 2: p* = 0.75
N = 4: p* = 0.37
The probability of volunteering is decreasing in group
size.

In equilibrium: 15 = 20 [1 (1 p)3] or p* = 0.37.


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Rules

Volunteer Rate (Spring 2011)

10 rounds of the volunteers dilemma game.

1
0.9

Rounds 1-5: 2 members in each group.


Rounds 6-10: 4 members in each group.

Ave p = 0.62

0.8

p* = 0.75

0.7
0.6
0.5
0.4

p* = 0.37

0.3
0.2

Ave p = 0.38

0.1
0
1

p* (N = 2)

p (N = 2)

p* (N = 4)

10

p (N = 4)

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Volunteer Rate (Fall 2013)

Volunteer Rate (Spring 2012)


Ave p = 0.80

Ave p = 0.xx
Ave p = 0.80

Ave p = 0.77
p* = 0.75

p* = 0.75

Ave p = 0.40
p* = 0.37

p* = 0.37

Ave p = 0.yy

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