Intelligent machines have reached capabilities that go beyond a level that a human being can fully comprehend without sufficiently detailed understanding of the underlying mechanisms. The choice of moves in the game Go (generated by Deep Mind?s Alpha Go Zero [1]) are an impressive example of an artificial intelligence system calculating results that even a human expert for the game can hardly retrace [2]. But this is, quite literally, a toy example. In reality, intelligent algorithms are encroaching more and more into our everyday lives, be it through algorithms that recommend products for us to buy, or whole systems such as driverless vehicles. We are delegating ever more aspects of our daily routines to machines, and this trend looks set to continue in the future. Indeed, continued economic growth is set to depend on it. The nature of human-computer interaction in the world that the digital transformation is creating will require (mutual) trust between humans and intelligent, or seemingly intelligent, machines. But what does it mean to trust an intelligent machine? How can trust be established between human societies and intelligent machines?
Both conventional wisdom and empirical evidence suggest that arranginga priorcommitment or agreement before an interaction takes place enhances the chance of reaching mutual cooperation. Yet it is not clear what mechanisms might underlie the participation in and compliance with such a commitment, especially when participation is costly and non-compliance can be profitable. Here, we develop a theory of participation and compliance with respect to an explicit commitment formation process and to institutional incentives where individuals, at first, decide whether or not to join a cooperative agreement to play a one-shot social dilemma game. Using a mathematical model, we determine whether and when participating in a costly commitment, and complying with it, is an evolutionarily stable strategy, resulting in high levels of cooperation. We show that, given a sufficient budget for providing incentives, rewarding of commitment compliant behaviours better promotes cooperation than punishment of non-compliant ones. Moreover, by sparing part of this budget for rewarding those willing to participate in a commitment, the overall level of cooperation can be significantly enhanced for both reward and punishment. Finally, the presence of mistakes in deciding to participate favours evolutionary stability of commitment compliance and cooperation.
When creating a public good, strategies or mechanisms are required to handle defectors. We first show mathematically and numerically that prior agreements with posterior compensations provide a strategic solution that leads to substantial levels of cooperation in the context of public goods games, results that are corroborated by available experimental data. Notwithstanding this success, one cannot, as with other approaches, fully exclude the presence of defectors, raising the question of how they can be dealt with to avoid the demise of the common good. We show that both avoiding creation of the common good, whenever full agreement is not reached, and limiting the benefit that disagreeing defectors can acquire, using costly restriction mechanisms, are relevant choices. Nonetheless, restriction mechanisms are found the more favourable, especially in larger group interactions. Given decreasing restriction costs, introducing restraining measures to cope with public goods free-riding issues is the ultimate advantageous solution for all participants, rather than avoiding its creation.