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A dynamic model of interactions between conscious and unconscious

Author

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  • Lotz, Aileen
  • Gosselin, Pierre

Abstract

This paper advocates that some limits of the rational agent hypothesis result from the improper assumption that one individual should be modeled as a single rational agent. We model an individual composed of two autonomous and interacting structures, conscious and unconscious. Each agent utility form depends both on external signals and other structures' actions. The perception of the signal depends on its recipient and its grid of interpretation. We study both the static and dynamic version of this interaction mechanism. We show that the dynamics may display instability, depending on the structures interactions'strength. However, if unconscious has a strategic advantage, greater stability is reached. By manipulating other structures�goals, the strategic agent can lead the whole system to an equilibrium closer to its own optimum. This result shows that some switch in the conscious�objective can appear. Behaviors that can't be explained with a single utility can thus be rational if we add a rational unconscious agent. Our results justify our hypothesis of a rational interacting unconscious. It supports the widening of the notion of rationality to multi-rationnality in interaction.

Suggested Citation

  • Lotz, Aileen & Gosselin, Pierre, 2012. "A dynamic model of interactions between conscious and unconscious," MPRA Paper 36697, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36697
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    File URL: https://mpra.ub.uni-muenchen.de/36697/1/MPRA_paper_36697.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gosselin, Pierre & Lotz, Aileen & Wambst, Marc, 2013. "On apparent irrational behaviors : interacting structures and the mind," MPRA Paper 44421, University Library of Munich, Germany.
    2. Pierre Gosselin & Aïleen Lotz & Marc Wambst, 2015. "From Rationality to Irrationality : Dynamic Interacting Structures," Working Papers hal-01122078, HAL.
    3. Pierre Gosselin & Aïleen Lotz & Marc Wambst, 2017. "A Path Integral Approach to Interacting Economic Systems with Multiple Heterogeneous Agents," Working Papers hal-01549586, HAL.
    4. Pierre Gosselin & Aïleen Lotz & Marc Wambst, 2020. "A path integral approach to business cycle models with large number of agents," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(4), pages 899-942, October.
    5. Pierre Gosselin & Aïleen Lotz & Marc Wambst, 2018. "A Path Integral Approach to Business Cycle Models with Large Number of Agents," Working Papers hal-01893556, HAL.
    6. Lotz, Aïleen, 2011. "An Economic Approach to the Self : the Dual Agent," MPRA Paper 50771, University Library of Munich, Germany.

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    More about this item

    Keywords

    dual agent; conscious and unconscious; rationality; multi-rationality; emotions; choices and preferences; multi-agent model; consistency;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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