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n-Person Second-Order Games: A Paradigm Shift in Game Theory

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  • M. Larbani

    (IIUM University)

  • P. L. Yu

    (National Chiao Tung University
    University of Kansas)

Abstract

In this paper, we present a new approach to n-person games based on the Habitual domain theory. Unlike the traditional game theory models, the constructed model captures the fact that the underlying changes in the psychological aspects and mind states of the players over the arriving events are the key factors, which determine the dynamic process of coalition formation. We introduce two new concepts of solution for games: strategically stable mind profile and structurally stable mind profile. The theory introduced in this paper overcomes the dichotomy of non-cooperative/cooperative games, prevailing in the existing game theory, which makes game theory more applicable to real-world game situations.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joptap:v:149:y:2011:i:3:d:10.1007_s10957-011-9799-1
    DOI: 10.1007/s10957-011-9799-1
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    References listed on IDEAS

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    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. M. Larbani & P. L. Yu, 2009. "Two-Person Second-Order Games, Part 2: Restructuring Operations to Reach a Win-Win Profile," Journal of Optimization Theory and Applications, Springer, vol. 141(3), pages 641-659, June.
    3. 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.
    4. 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.
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    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. 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.

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