Game Dynamics Structure Control by Design: an Example from Experimental Economics

TL;DR

This paper demonstrates how to control the structure of game dynamics in human experiments using control theory, combining theoretical design with laboratory and simulation validation.

Contribution

It introduces a novel approach to control game dynamics structures through mechanism design, integrating control theory with experimental economics.

Findings

Successful design of feedback controllers for desired game structures

Experimental validation with human subjects confirms control effectiveness

Simulation results support theoretical predictions

Abstract

Game dynamics structure (e.g., endogenous cycle motion) in human subjects game experiments can be predicted by game dynamics theory. However, whether the structure can be controlled by mechanism design to a desired goal is not known. Here, using the pole assignment approach in modern control theory, we demonstrate how to control the structure in two steps: (1) Illustrate an theoretical workflow on how to design a state-depended feedback controller for desired structure; (2) Evaluate the controller by laboratory human subject game experiments and by agent-based evolutionary dynamics simulation. To our knowledge, this is the first realisation of the control of the human social game dynamics structure in theory and experiment.