Solving the „Tracking Game“

The „tracking game“ is a nonlinear extension of the linear regulator problem (also known as „tracking problem“), which is well known from LQ optimal control theory. Such a game taking place in a shared environment is characterized by the fact that the effectiveness of individual decisions heavily depends on the decisions of other players.

A Complexity Science View of Marketing

The marketing world has changed.  Previously we tended to assume a
direct consequence of a marketing initiative on a consumer (hell, even
proved it qualitatively and quantitatively), and the trick was to
scale this as widely as we could.  One consumer sees an ad we know
they like, buys a product, therefore let’s get as many consumers to
see the ad.

Public Goods Game

Selfishness and Cooperation

Evolutionary methods can be used to shine a light on the conditions for selfish or cooperative behavior. Imagine a situation, where you have to work together with a team of random strangers. The outcome will be depending on the sum of the individual efforts, but the success will be equally shared afterwards. In a computer experiment, we have investigated the evolution of cooperative behavior in two scenarios. Players were randomly divided into groups and had the chance to increase their investment by paying money into a pot where it was multiplied. The players were controlled by a neural network…

The Role of Prices, Part 1

In today’s global economy, we can’t begin to count how many transactions between buyers and sellers happen each day. But who decides the individual costs of all of these goods and services? Why do those costs change over time? Why are some things so ridiculously expensive? In a free-market economy, prices are so much more than the amount of money we pay when we buy something.