Exploring the Behavior of Economic Agents: the role of relative preferences
Standard economic theory assumes individuals choose actions that optimize their expected utility. In this paper we investigate how the existence of players with non-standard preferences may influence economic agents' behavior in some of the most frequently studied non-cooperative games. We find that allowing for the existence of agents with relative preferences can help explain observed economic actions which, at times, appear counter-intuitive.
Volume (Year): 12 (2006)
Issue (Month): 2 ()
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