Promoting Fair Proposers, Fair Responders or Both? Cost-Efficient Interference in the Spatial Ultimatum Game
Abstract
Institutions and investors face the constant challenge of making accurate decisions and predictions regarding how best they should distribute their endowments. The problem of achieving an optimal outcome at minimal cost has been extensively studied and resolved using several heuristics. However, these works fail to address how an external decision maker can target different types of fair behaviour and how limited information can shape this complex interplay. Here, we consider the well-known Ultimatum game in a spatial setting and propose a hierarchy of interference mechanisms based on the amount of information available to the external decision maker and desired standards of fairness. Our key findings show that asymmetric interactions have drastically different dynamics when compared to symmetric games, such as the Prisoner's Dilemma, and discuss why gathering information about the agents' behaviour allows for the most efficient investment strategies.