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Related Experiment Video

Updated: May 16, 2026

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm
06:18

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm

Published on: October 20, 2022

The agencies method for coalition formation in experimental games.

John F Nash1, Rosemarie Nagel, Axel Ockenfels

  • 1Departments of Mathematics and Economics, Princeton University, Princeton, NJ 08544, USA. xkjfnj@princeton.edu

Proceedings of the National Academy of Sciences of the United States of America
|November 24, 2012
PubMed
Summary

In coalition formation games, transferring power to an agent promotes efficiency. However, agents balance self-interest with cooperation, leading to near-equal payoffs due to voting procedures and reciprocal behavior.

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The HoneyComb Paradigm for Research on Collective Human Behavior
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The HoneyComb Paradigm for Research on Collective Human Behavior

Published on: January 19, 2019

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Last Updated: May 16, 2026

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm
06:18

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm

Published on: October 20, 2022

The HoneyComb Paradigm for Research on Collective Human Behavior
06:48

The HoneyComb Paradigm for Research on Collective Human Behavior

Published on: January 19, 2019

Area of Science:

  • Behavioral economics
  • Game theory
  • Social dynamics

Background:

  • Previous research explored cooperation in robot coalition formation games.
  • Agency and power transfer are key aspects of social and economic interactions.

Purpose of the Study:

  • To investigate human behavior in finitely repeated three-person coalition formation games with power transfer.
  • To assess the efficiency and fairness of an agency system in distributing coalition payoffs.

Main Methods:

  • Laboratory experiment with human participants in three-person coalition formation games.
  • Players have varying strengths influencing coalition payoffs.
  • An agent is appointed to distribute payoffs, with a voting procedure for agent selection.

Main Results:

  • The agency method significantly enhances coalition formation efficiency.
  • Agents face a conflict between maximizing individual gain and sustaining cooperation.
  • While individual rounds may show distributions aligned with Shapley value or nucleolus, overall payoffs are nearly equal.
  • Voting procedures create a balance of power, irrespective of individual player strength.

Conclusions:

  • The agency system is effective for efficient coalition formation.
  • Social dynamics, including voting and reciprocity, lead to equitable payoff distributions.
  • Individual player strength has less impact on final payoffs than the group's collective behavior and governance mechanisms.