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Psychological Games in the Theory of Choice. II. Shame, Regret, Egoism and Altruism

Author

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  • Zak, F.

    (Central Economics Mathematical Institute of the Russian Academy of Sciences, Moscow, Russia)

Abstract

In this paper we give a survey of recent works on game theory devoted to modeling of decision making process under bounded rationality. An agent's deviation from rational choice understood as maximization of gain can be caused by moral principles (religious beliefs, altruism, patriotism), emotions (envy, wrath, shame, regret, or guilt) or simply by an attempt to comply with several estimation criteria not reducible to a single one. In the second part of the survey we consider the behavior of agents subject to shame and regret, egoists and altruists, and study bargaining solutions in multicriteria settings.

Suggested Citation

  • Zak, F., 2014. "Psychological Games in the Theory of Choice. II. Shame, Regret, Egoism and Altruism," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 12-40.
    • Handle: RePEc:nea:journl:y:2014:i:22:p:12-40
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    References listed on IDEAS

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    Cited by:

    1. Danilov, V., 2015. "Beyond Classical Rationality: Two-Stage Rationalization," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 12-35.
    2. Zak, F., 2021. "On some models of altruistic behavior," Journal of the New Economic Association, New Economic Association, vol. 49(1), pages 12-52.

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    More about this item

    Keywords

    binary preference relation; utility function; two-period choice model; set betweenness axiom; shame; regret; egoism; altruism; attraction; compromise; fallback bargaining;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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