Two-person second-order games. II: Restructuring operations to reach a win-win profile (Q1035878)

\textit{P. L. Yu} and \textit{M. Larbani} [J. Optim. Theory Appl. 141, No. 3, 619--639 (2009; Zbl 1194.91028)] introduced a model for describing the evolution of the states of mind of players over time using habitual domains theory and finite Markov chain theory. In this model, sets of strategies and utility functions are not involved, but it focuses on the states of mind of players and it could significantly enlarge the scope of applications of games in normal form. This model is known as two-person second-order game. The solution concepts for these games are the focal mind profile and the win-win profile but in some real-world situations the focal mind profile or the win-win profile are not reachable. In this paper, the possibility theorem is established: under some natural assumptions, it is always possible to reach a win-win mind profile. They also provide three practical operations for restructuring a game and hence to reach a win-win profile that are expressed in terms of mathematical operations on the transition probability matrix \(P\). Three examples are used as illustration, among them the prisoner's dilemma. It should be noted that in traditional game theory restructuring games for reaching better solutions are not considered. The objective of the first operation is to dissolve irrelevant recurrent classes or remove decision traps. Operation 2 is for integrating the focal profile with a recurrent class. With Operation 3, we make the focal profile absorbing and it becomes win-win. Based on these three operations, two procedures are presented for reaching the focal profile. One is straightforward, the other is progressive and both terminate in a finite number of steps. They also show a procedure to make the focal profile a win-win profile. Different reframing techniques were used to reach a focal profile or transform it into a win-win profile in the examples they have treated in this paper, for example, in the case of the prisoner's dilemma a new rule of the game has been introduced to reframe the pay-offs. The Possibility Theorem summarizes all these results. It is open how to find optimal ways of restructuring the game for reaching a win-win profile when time, cost and other criteria are considerated to evaluate changes in transition probabilities or equivalently changes in the minds of players. The paper finishes with some proofs ([\textit{D. Dawson}, Introduction to Markov chains, Montreal: Canadian Mathematical Congress (1970; Zbl 0228.60022)], and results of \textit{P. L. Yu} and \textit{M. Larbani} [J. Optim. Theory Appl. 141, No.~3, 619--639 (2009; Zbl 1194.91028)] are mentioned in some definition and proof) and the three ``toolbox'' related with basic methods for expanding the habitual domains (active learning, brain storming or meditation among others), ideas that capture our attention (ideas that arrive at the right time or credible ideas, for example) and methods for integrating an idea or concept with the core of a decision maker's habitual domain, respectively. The authors hope that second order games will be a useful and effective tool for solving real social, political and economic conflicts.