A dynamic model of interactions between conscious and unconscious
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.
|Date of creation:||15 Feb 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rabin, Matthew, 2002.
"A perspective on psychology and economics,"
European Economic Review,
Elsevier, vol. 46(4-5), pages 657-685, May.
- Rabin, Matthew, 2002. "A Perspective on Psychology and Economics," Department of Economics, Working Paper Series qt2wr3z049, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Matthew Rabin, 2003. "A Perspective on Psychology and Economics," General Economics and Teaching 0303003, EconWPA.
- Rabin, Mathew, 2002. "A Perspective on Psychology and Economics," Department of Economics, Working Paper Series qt4z78n1r9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
in: Essays in the Economics of Crime and Punishment, pages 1-54
National Bureau of Economic Research, Inc.
- Pierre Gosselin & Aileen Lotz & Charles Wyplosz, 2006.
"How Much Information should Interest Rate-Setting Central Banks Reveal?,"
IHEID Working Papers
08-2006, Economics Section, The Graduate Institute of International Studies.
- Gosselin, Pierre & Gosselin-Lotz, Aileen & Wyplosz, Charles, 2006. "How Much Information Should Interest Rate-Setting Central Banks Reveal?," CEPR Discussion Papers 5666, C.E.P.R. Discussion Papers.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- J. Doyne Farmer & John Geanakoplos, 2008.
"The Virtues and Vices of Equilibrium and the Future of Financial Economics,"
Levine's Working Paper Archive
122247000000002067, David K. Levine.
- J. Doyne Farmer & John Geanakoplos, 2008. "The Virtues and Vices of Equilibrium and the Future of Financial Economics," Cowles Foundation Discussion Papers 1647, Cowles Foundation for Research in Economics, Yale University.
- J. Doyne Farmer & John Geanakoplos, 2008. "The virtues and vices of equilibrium and the future of financial economics," Papers 0803.2996, arXiv.org.
- Elster, Jon & Ekeland, Ivar, 2011. "Théorie économique et rationalité," Economics Papers from University Paris Dauphine 123456789/13502, Paris Dauphine University.
- Lotz, Aïleen, 2011.
"An Economic Approach to the Self : the Dual Agent,"
50771, University Library of Munich, Germany.
- Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
- Berg, Nathan, 2010. "Behavioral Economics," MPRA Paper 26587, University Library of Munich, Germany.
- P. Gosselin & A. Lotz & C. Wyplosz, 2008. "When Central Banks Reveal Future Interest Rates: Alignment of Expectations Vs. Creative Opacity," Post-Print hal-00383304, HAL.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:36697. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.