Power in economic games

Abstract

Economic games offer an analytic tool to examine strategic decision-making in social interactions. Here we identify four sources of power that can be captured and studied with economic games - asymmetric dependence, the possibility to reduce dependence, the ability to punish and reward, and the use of knowledge and information. We review recent studies examining these distinct forms of power, highlight that the use of economic games can benefit our understanding of the behavioral and neurobiological underpinnings of power, and illustrate how power differences within and between groups impact cooperation, exploitation, and conflict.