Human Decision-making of Coalition Formation: An Experiment Using a Hybrid Agent-Based Model

Abstract

Incorporating human behavior is a current challenge for agent-based modeling and simulation (ABMS). Human behavior is not a single phenomenon and includes many different aspects, nuances, and scenario-related effects; one scenario is strategic group formation, which is traditionally modeled using cooperative game theory. Human behavior is heterogeneous, which makes ABMS a good choice for modeling its wider effects; however, understanding this heterogeneity is key to effectively modeling human behavior in the first place. This paper presents the results of an experiment to investigate what human characteristics affect strategic group formation. This experiment was conducted using a human-in-the-loop hybrid simulation of a standard cooperative game called the glove game. Demographic information was considered in the statistical analysis, as well as participants' gaming experience. The results showed that these characteristics did not impact the results. The results also showed that the participants achieved stable coalitions, as determined by cooperative game theory, only about 40% of the time. Also, the paper presents a novel approach for conducting human-in-the-loop experiments using a hybrid ABMS approach.