Evolution of boundedly rational learning in games

Abstract: People make strategic decisions multiple times a day. We act strategically in negotiations, when we coordinate our actions with others, or when we choose with whom to cooperate. The resulting dynamics can be studied with evolutionary game theory. This framework explores how people adapt their decisions over time, in light of how effective their strategies have proven to be. A crucial quantity in respective models is the strength of selection. This quantity regulates how likely individuals switch to a better strategy when given the choice. The larger the selection strength, the more biased is the learning process in favor of strategies with large payoffs. Therefore, this quantity is often interpreted as a measure of rationality. Traditionally, most models take selection strength to be a fixed parameter. Instead, here we allow the individuals' strategies and their selection strength to co-evolve. The endpoints of this co-evolutionary process depend on the strategic interaction in place. In many prisoner's dilemmas, selection strength increases indefinitely, as one may expect. However, in snowdrift or stag-hunt games, it can either converge to a finite value, or we observe evolutionary branching altogether - such that different individuals arrive at different selection strengths. Overall, this work sheds light on how evolution might shape learning mechanisms for social behavior. It suggests that boundedly rational learning is not only a by-product of cognitive constraints. Instead it might also evolve as a means to gain strategic advantages.