2.3EMFeb 21, 2018
Algorithmic Collusion in Cournot Duopoly Market: Evidence from Experimental EconomicsNan Zhou, Li Zhang, Shijian Li et al.
Algorithmic collusion is an emerging concept in current artificial intelligence age. Whether algorithmic collusion is a creditable threat remains as an argument. In this paper, we propose an algorithm which can extort its human rival to collude in a Cournot duopoly competing market. In experiments, we show that, the algorithm can successfully extorted its human rival and gets higher profit in long run, meanwhile the human rival will fully collude with the algorithm. As a result, the social welfare declines rapidly and stably. Both in theory and in experiment, our work confirms that, algorithmic collusion can be a creditable threat. In application, we hope, the frameworks, the algorithm design as well as the experiment environment illustrated in this work, can be an incubator or a test bed for researchers and policymakers to handle the emerging algorithmic collusion.
3.1AINov 16, 2017
Using experimental game theory to transit human values to ethical AIYijia Wang, Yan Wan, Zhijian Wang
Knowing the reflection of game theory and ethics, we develop a mathematical representation to bridge the gap between the concepts in moral philosophy (e.g., Kantian and Utilitarian) and AI ethics industry technology standard (e.g., IEEE P7000 standard series for Ethical AI). As an application, we demonstrate how human value can be obtained from the experimental game theory (e.g., trust game experiment) so as to build an ethical AI. Moreover, an approach to test the ethics (rightness or wrongness) of a given AI algorithm by using an iterated Prisoner's Dilemma Game experiment is discussed as an example. Compared with existing mathematical frameworks and testing method on AI ethics technology, the advantages of the proposed approach are analyzed.