Papers › The evolution of forecasting for decision making in dynamic environments
The evolution of forecasting for decision making in dynamic environments
Andrew R. Tilman, Vítor V. Vasconcelos, Erol Akçay, Joshua B. Plotkin
Global change is reshaping ecosystems and societies. Strategic choices that were best yesterday may be sub-optimal tomorrow; and environmental conditions that were once taken for granted may soon cease to exist. In this setting, how people choose behavioral strategies has important consequences for environmental dynamics. Economic and evolutionary theories make similar predictions for strategic behavior in a static environment, even though one approach assumes perfect rationality and the other assumes no cognition whatsoever; but predictions differ in a dynamic environment. Here we explore a middle ground between economic rationality and evolutionary myopia. Starting from a population of myopic agents, we study the emergence of a new type that forms environmental forecasts when making strategic decisions. We show that forecasting types can have an advantage in changing environments, even when the act of forecasting is costly. Forecasting types can invade but not overtake the population, producing a stable coexistence with myopic types. Moreover, forecasters provide a public good by reducing the amplitude of environmental oscillations and increasing mean payoff to forecasting and myopic types alike. We interpret our results for understanding the evolution of different modes of decision-making. And we discuss implications for the management of environmental systems of great societal importance.
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