Neural nets in a group decision process

In recent years there has been some interest in applying Artificial Adaptive Agents (AAA) to the study of complex adaptive systems, especially economic systems. Neural networks are frequently employed as AAA. Artificial neural nets mimic certain aspects of the physical structure and information processing of the human brain and their most attractive characteristic is their ability to learn a pattern from a given set of examples. In this study, we investigated the ability of neural nets to model human behavior in a group decision process. The context was a market entry game with a linear payoff function and binary decisions. The players had to decide, for each trial, whether or not to enter a market whose capacity is public knowledge. Human behavior in this situation has been modeled and empirically validated by the Nash equilibrium for noncooperative n-person games. A simulation of the game was performed with neural nets instead of human subjects. The nets were trained using the results of the games in which they participated. The simulation with groups of neural nets exhibits phenomena very similar to those observed in groups of human players. Received February 2000