paper
Two-Person Cooperative Games with delta-Rationality
Fang-Fang Tang, Yongsheng Xu
Two-Person Cooperative Games with delta-Rationality
Fang-Fang Tang, Yongsheng Xu
Paper2025-06-19English
Description
A player's payoff is modeled as consisting of two parts: a rational-value part and a distortion-value part. It is argued that the (total) payoff function should be used to explain and predict the behaviors of the players, while the rational value function should be used to conduct welfare analysis of the final outcome. We use the Nash demand game to illustrate our model.
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