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Chapter 5 discusses in particular the role of the prefrontal cortex for behaviors involving reciprocal fairness. 28 C. R. Hawes Fig. 4 Generic Centipede Game: at each node, the moving player may T(ake) the reward, or P(ass) the move along. Overall rewards increase with each passing decision. 4 Centipede Game Intuition: The Centipede Game is a classic example of a group of games that can be solved using backward induction. At its core it describes a finitely often repeated, sequential prisoner’s dilemma.

3 Generic Public Goods Game. Solid triangles indicate a player’s choice of a continuous value x within some interval. Each player moves without knowledge of what value has been chosen by the other players in game (illustrated by the dotted lines along the intervals). For an arbitrary number N players, payoffs are determined as a function of some initial endowment E and a multiplier κ in [1, N). Each player receives exactly their initial endowment less their donation to the public good, x, as well as their share of the κ-multiplied sum of total contributions by the group as a whole 2 Game Theory in Neuroeconomics 27 Prisoner’s Dilemma, the Public Goods Game is a paragon for games that investigate the emergence of collaboration and altruistic behavior.

Hawes Fig. 2 Generic Matching Pennies. Player 1 chooses between U(p) and D(own), while player 2 chooses between l(eft) and r(ight). Player 1 wins when actions match ({U, l} and {D, r}), player 2 wins under the alternative outcomes that add up to zero for each outcome), and the Matching Pennies game is often cited as a quintessential example of such games. Equilibrium Solutions: The Matching Pennies game is a two-action version of popular games such as “Rock, Paper, Scissors”, “Morra”, or “oddsandevens”.