Game Theory without Decision-Theoretic Paradoxes
نویسنده
چکیده
Most work in game theory is conducted under the assumption that the players are expected utility maximizers. Expected utility is a very tractable decision model, but is prone to wellknown paradoxes and empirical violations (Allais 1953, Ellsberg 1961), which may induce biases in game-theoretic predictions. La Mura (2009) introduced a projective generalization of expected utility (PEU) which avoids the dominant paradoxes, while remaining quite tractable. We show that every finite game with PEU players has an equilibrium, and discuss several examples of PEU games.
منابع مشابه
Projective Expected Utility
Motivated by several classic decision-theoretic paradoxes, and by analogies with the paradoxes which in physics motivated the development of quantum mechanics, we introduce a projective generalization of expected utility along the lines of the quantum-mechanical generalization of probability theory. The resulting decision theory accommodates the dominant paradoxes, while retaining significant s...
متن کاملNGTSOM: A Novel Data Clustering Algorithm Based on Game Theoretic and Self- Organizing Map
Identifying clusters is an important aspect of data analysis. This paper proposes a noveldata clustering algorithm to increase the clustering accuracy. A novel game theoretic self-organizingmap (NGTSOM ) and neural gas (NG) are used in combination with Competitive Hebbian Learning(CHL) to improve the quality of the map and provide a better vector quantization (VQ) for clusteringdata. Different ...
متن کاملCoordinating a decentralized supply chain with a stochastic demand using quantity flexibility contract: a game-theoretic approach
Supply chain includes two or more parties linked by flow of goods, information, and funds. In a decentralized system, supply chain members make decision regardless of their decision's effects on the performance of the other members and the entire supply chain. This is the key issue in supply chain management, that the mechanism should be developed in which different objectives should be align...
متن کاملCommon reasoning in games: a Lewisian analysis of common knowledge of rationality*
The focus for the Centre is research into individual and strategic decision‐making using a combination of theoretical and experimental methods. On the theory side, members of the Centre investigate individual choice under uncertainty, cooperative and non‐cooperative game theory, as well as theories of psychology, bounded rationality and evolutionary game theory. Members of the Centre have appli...
متن کاملOptimized Pricing Decisions In a Multi-Level Supply Chain With Various Power and Channel Structures: A Game-Theoretic Approach
This article studies the optimization of pricing decisions in a supply chain with different channels under different power structure. Three different channel will be considered here; these include: the decentralized, the semi-integrated, and the integrated channel. There are two types of power balance structures for both the decentralized and the semi-integrated channels. The first type is a le...
متن کامل