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Maximal Elements Under Reference-Dependent Preferences with Applications to Behavioral Traps and Games

Author

Listed:
  • Fabián Flores-Bazán

    (University of Concepcion)

  • Dinh The Luc

    (University of Avignon)

  • Antoine Soubeyran

    (University of Aix-Marseille)

Abstract

We study reference-dependent preference relations defined by a real-valued bivariate function and prove an existence criterion for maximal elements. Then we formulate a generalized version of the well-known Brondsted maximum principle and apply it to behavioral traps and Nash equilibrium in games with preference relations that are not necessarily partial orders.

Suggested Citation

  • Fabián Flores-Bazán & Dinh The Luc & Antoine Soubeyran, 2012. "Maximal Elements Under Reference-Dependent Preferences with Applications to Behavioral Traps and Games," Journal of Optimization Theory and Applications, Springer, vol. 155(3), pages 883-901, December.
    • Handle: RePEc:spr:joptap:v:155:y:2012:i:3:d:10.1007_s10957-012-0100-z
    DOI: 10.1007/s10957-012-0100-z
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    References listed on IDEAS

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    3. Yan Chen & Robert Gazzale, 2004. "When Does Learning in Games Generate Convergence to Nash Equilibria? The Role of Supermodularity in an Experimental Setting," American Economic Review, American Economic Association, vol. 94(5), pages 1505-1535, December.
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    7. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    8. Botond Kőszegi, 2010. "Utility from anticipation and personal equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(3), pages 415-444, September.
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    Cited by:

    1. Luc, Dinh The & Soubeyran, Antoine, 2013. "Variable preference relations: Existence of maximal elements," Journal of Mathematical Economics, Elsevier, vol. 49(4), pages 251-262.
    2. Majid Fakhar & Mohammadreza Khodakhah & Ali Mazyaki & Antoine Soubeyran & Jafar Zafarani, 2022. "Variational rationality, variational principles and the existence of traps in a changing environment," Journal of Global Optimization, Springer, vol. 82(1), pages 161-177, January.
    3. Kely D. V. Villacorta & Paulo R. Oliveira & Antoine Soubeyran, 2014. "A Trust-Region Method for Unconstrained Multiobjective Problems with Applications in Satisficing Processes," Journal of Optimization Theory and Applications, Springer, vol. 160(3), pages 865-889, March.
    4. T. Q. Bao & B. S. Mordukhovich & A. Soubeyran, 2015. "Variational Analysis in Psychological Modeling," Journal of Optimization Theory and Applications, Springer, vol. 164(1), pages 290-315, January.
    5. Antoine Soubeyran, 2022. "Variational rationality: Finding the inequations of motion of a person seeking to meet his needs," Working Papers hal-04065103, HAL.
    6. G. C. Bento & A. Soubeyran, 2015. "Generalized Inexact Proximal Algorithms: Routine’s Formation with Resistance to Change, Following Worthwhile Changes," Journal of Optimization Theory and Applications, Springer, vol. 166(1), pages 172-187, July.
    7. Antoine Soubeyran, 2023. "Variational rationality: Finding the inequations of motion of a person seeking to meet his needs," AMSE Working Papers 2309, Aix-Marseille School of Economics, France.

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