IDEAS home Printed from https://ideas.repec.org/a/spr/joptap/v141y2009i3d10.1007_s10957-008-9487-y.html
   My bibliography  Save this article

Two-Person Second-Order Games, Part 1: Formulation and Transition Anatomy

Author

Listed:
  • P. L. Yu

    (National Chiao Tung University
    University of Kansas)

  • M. Larbani

    (Kainan University
    IIUM University)

Abstract

It is well known that human psychology determines his/her action and behavior. This fact has not been fully incorporated in game theory. This paper intends to incorporate human psychology in formulating games as people play them. In Part 1 of the paper, we formulate a two-person game by the habitual domain theory and the Markov chain theory. Using the habitual domains theory, we present a new model describing the evolution of the states of mind of players over time, the two-person second-order game. We introduce the concept of the focal mind profile as well as the solution concept of the win-win mind profile. In addition, we provide also a method to predict the average number of steps needed for a game to reach a focal or win-win mind profile. Then, in Part 2 of the paper, under some reasonable assumptions, we derive the possibility theorem stating that it is always possible to reach a win-win mind profile when suitable conditions are satisfied.

Suggested Citation

  • P. L. Yu & M. Larbani, 2009. "Two-Person Second-Order Games, Part 1: Formulation and Transition Anatomy," Journal of Optimization Theory and Applications, Springer, vol. 141(3), pages 619-639, June.
    • Handle: RePEc:spr:joptap:v:141:y:2009:i:3:d:10.1007_s10957-008-9487-y
    DOI: 10.1007/s10957-008-9487-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10957-008-9487-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10957-008-9487-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R.J. Aumann & S. Hart (ed.), 2002. "Handbook of Game Theory with Economic Applications," Handbook of Game Theory with Economic Applications, Elsevier, edition 1, volume 3, number 3.
    2. Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
    3. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. T. Q. Bao & B. S. Mordukhovich & A. Soubeyran, 2015. "Variational Analysis in Psychological Modeling," Journal of Optimization Theory and Applications, Springer, vol. 164(1), pages 290-315, January.
    2. Po-Lung Yu & Yen-Chu Chen, 2012. "Dynamic multiple criteria decision making in changeable spaces: from habitual domains to innovation dynamics," Annals of Operations Research, Springer, vol. 197(1), pages 201-220, August.
    3. Moussa Larbani & Po Lung Yu, 2012. "Decision Making and Optimization in Changeable Spaces, a New Paradigm," Journal of Optimization Theory and Applications, Springer, vol. 155(3), pages 727-761, December.
    4. M. Larbani & P. L. Yu, 2011. "n-Person Second-Order Games: A Paradigm Shift in Game Theory," Journal of Optimization Theory and Applications, Springer, vol. 149(3), pages 447-473, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caplin, Andrew & Leahy, John, 2006. "The recursive approach to time inconsistency," Journal of Economic Theory, Elsevier, vol. 131(1), pages 134-156, November.
    2. M. Larbani & P. L. Yu, 2011. "n-Person Second-Order Games: A Paradigm Shift in Game Theory," Journal of Optimization Theory and Applications, Springer, vol. 149(3), pages 447-473, June.
    3. van Damme, E.E.C., 2000. "Non-cooperative Games," Discussion Paper 2000-96, Tilburg University, Center for Economic Research.
    4. D. Marc Kilgour & Keith W. Hipel & Liping Fang & Xiaoyong (John) Peng, 2001. "Coalition Analysis in Group Decision Support," Group Decision and Negotiation, Springer, vol. 10(2), pages 159-175, March.
    5. van Damme, E.E.C., 2015. "Game theory : Noncooperative games," Other publications TiSEM ff518f2b-501f-4d99-817b-c, Tilburg University, School of Economics and Management.
    6. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, December.
    7. Giuseppe De Marco & Jacqueline Morgan, 2007. "Slightly Altruistic Equilibria in Normal Form Games," CSEF Working Papers 185, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    8. Jens Gudmundsson & Jens Leth Hougaard, 2020. "Enabling reciprocity through blockchain design," IFRO Working Paper 2020/14, University of Copenhagen, Department of Food and Resource Economics, revised 09 Feb 2021.
    9. G. De Marco & J. Morgan, 2008. "Slightly Altruistic Equilibria," Journal of Optimization Theory and Applications, Springer, vol. 137(2), pages 347-362, May.
    10. Ohnishi, Kazuhiro, 2018. "Non-Altruistic Equilibria," MPRA Paper 88347, University Library of Munich, Germany.
    11. André Casajus, 2009. "Networks and outside options," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(1), pages 1-13, January.
    12. Fu, Haifeng & Yu, Haomiao, 2015. "Pareto-undominated and socially-maximal equilibria in non-atomic games," Journal of Mathematical Economics, Elsevier, vol. 58(C), pages 7-15.
    13. Ederer, Florian & Stremitzer, Alexander, 2017. "Promises and expectations," Games and Economic Behavior, Elsevier, vol. 106(C), pages 161-178.
    14. Xue, Licun, 2002. "Stable agreements in infinitely repeated games," Mathematical Social Sciences, Elsevier, vol. 43(2), pages 165-176, March.
    15. Pravin Krishna & Devashish Mitra, 2016. "Reciprocated unilateralism in trade policy," World Scientific Book Chapters, in: The Political Economy of Trade Policy Theory, Evidence and Applications, chapter 3, pages 37-63, World Scientific Publishing Co. Pte. Ltd..
    16. Grossman, Gene M & Helpman, Elhanan, 1995. "The Politics of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 85(4), pages 667-690, September.
    17. Marco Faravelli & Randall Walsh, 2011. "Smooth Politicians And Paternalistic Voters: A Theory Of Large Elections," Levine's Working Paper Archive 786969000000000250, David K. Levine.
    18. Ding, Zhanwen & Shi, Guiping, 2009. "Cooperation in a dynamical adjustment of duopoly game with incomplete information," Chaos, Solitons & Fractals, Elsevier, vol. 42(2), pages 989-993.
    19. Hans‐Peter Weikard, 2009. "Cartel Stability Under An Optimal Sharing Rule," Manchester School, University of Manchester, vol. 77(5), pages 575-593, September.
    20. Matthias Kräkel, 2002. "U-Type versus J-Type Tournaments," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 614-637, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joptap:v:141:y:2009:i:3:d:10.1007_s10957-008-9487-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.