Competitive Search with a Faulty Satnav (GPS): When Probability Matching is Rational
For researchers in game theory and behavioral science, this work demonstrates that probability matching can be rational in a competitive search context, challenging the common view that it is a cognitive bias.
This paper analyzes a competitive search game where multiple searchers use a faulty GPS to find a treasure, and shows that there is a unique symmetric equilibrium trust probability that matches the GPS accuracy in the limit of many searchers, providing a rational basis for probability matching behavior.
A divisible treasure is located at a node $H$ of a network. From a given start node a group of $n$ Searchers each seek to reach $H$ first, dividing the treasure equally with the other first arrivers. This type of search game is called competitive search, where the conflict is not between hider and searcher but between searchers. Examples are search for oil deposits or for a pilot downed over enemy territory. In our model, the Searchers have a common Satnav (GPS) which points to $H$ at each branch node with a known probability $p<1$ and each Searcher chooses the probability $q$ with which they follow the pointer. We consider a family of star graphs where the Searchers start at the center and $H$ lies at one of the $k$ leaf nodes. We show that for all parameter values $n,k,p,$ there is a unique trust probability $q$ which forms a symmetric equilibrium. The equilibrium $q$ is increasing in $p,$ decreasing in $n$ and increasing in $k$. Furthemore for fixed $k$ and $p$ we have $q$ equal to $p$ in the limit of $n$ tending to infinity. This last fact is a new example where what is known in behavioural science as probability matching is in fact rational.