Identifying Latent Intentions via Inverse Reinforcement Learning in Repeated Linear Public Good Games
Carina I. Hausladen, Marcel H. Schubert, Christoph Engel
TL;DR
This paper addresses the unexplained volatility observed in repeated linear public good games by introducing two methodological advances: Dynamic Time Warping (DTW) based clustering to identify temporally misaligned behavioral trajectories, and a Hierarchical Inverse Q-Learning (HIQL) framework that models discrete switches between latent cooperative and defective intentions. Applying these methods to a large dataset of $50{,}390$ decisions from $2{,}938$ participants, the authors uncover six behavioral clusters, including a novel Switchers type that accounts for about $21.4\%$ of participants and frequently reverses intentions. The HIQL model integrates observed actions and state information to infer latent intentions, revealing both stable patterns (persistent free riders, unconditional and consistent cooperators) and switching dynamics (Switchers) that are explanations for previously ambiguous residuals. Recognizing intentional volatility demonstrates how forward-looking partners can forgive transient defections, aiding strategies to sustain cooperation, with broad implications for organizational behavior and financial decision-making. The approach is highly transferable to other time-series domains, offering a data-driven, interpretable framework for identifying latent intentions and their transitions in complex social and economic settings.
Abstract
Behavior in repeated public goods games continues to challenge standard theory: heterogeneous social preferences can explain first-round contributions, but not the substantial volatility observed across repeated interactions. Using 50,390 decisions from 2,938 participants, we introduce two methodological advances to address this gap. First, we cluster behavioral trajectories by their temporal shape using Dynamic Time Warping, yielding distinct and theoretically interpretable behavioral types. Second, we apply a hierarchical inverse Q-learning framework that models decisions as discrete switches between latent cooperative and defective intentions. This approach reveals a large (21.4%) and previously unmodeled behavioral type -- Switchers -- who frequently reverse intentions rather than commit to stable strategies. At the same time, the framework recovers canonical strategic behaviors such as persistent cooperation and free-riding. Substantively, recognizing intentional volatility helps sustain cooperation: brief defections by Switchers often reverse, so strategic patience can prevent unnecessary breakdowns.
