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Maximal Elements Under Reference-Dependent Preferences with Applications to Behavioral Traps and Games

Author

Listed:
  • Fabián Flores-Bazán

    (University of Concepcion)

  • Dinh The Luc

    (University of Avignon)

  • Antoine Soubeyran

    (University of Aix-Marseille)

Abstract

We study reference-dependent preference relations defined by a real-valued bivariate function and prove an existence criterion for maximal elements. Then we formulate a generalized version of the well-known Brondsted maximum principle and apply it to behavioral traps and Nash equilibrium in games with preference relations that are not necessarily partial orders.

Suggested Citation

  • Fabián Flores-Bazán & Dinh The Luc & Antoine Soubeyran, 2012. "Maximal Elements Under Reference-Dependent Preferences with Applications to Behavioral Traps and Games," Journal of Optimization Theory and Applications, Springer, vol. 155(3), pages 883-901, December.
    • Handle: RePEc:spr:joptap:v:155:y:2012:i:3:d:10.1007_s10957-012-0100-z
    DOI: 10.1007/s10957-012-0100-z
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    References listed on IDEAS

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    2. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    3. Botond Kőszegi, 2010. "Utility from anticipation and personal equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(3), pages 415-444, September.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Majid Fakhar & Mohammadreza Khodakhah & Ali Mazyaki & Antoine Soubeyran & Jafar Zafarani, 2022. "Variational rationality, variational principles and the existence of traps in a changing environment," Journal of Global Optimization, Springer, vol. 82(1), pages 161-177, January.
    2. 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.
    3. Luc, Dinh The & Soubeyran, Antoine, 2013. "Variable preference relations: Existence of maximal elements," Journal of Mathematical Economics, Elsevier, vol. 49(4), pages 251-262.
    4. Antoine Soubeyran, 2023. "Variational rationality: Finding the inequations of motion of a person seeking to meet his needs," AMSE Working Papers 2309, Aix-Marseille School of Economics, France.
    5. Antoine Soubeyran, 2022. "Variational rationality: Finding the inequations of motion of a person seeking to meet his needs," Working Papers hal-04065103, HAL.
    6. G. C. Bento & A. Soubeyran, 2015. "Generalized Inexact Proximal Algorithms: Routine’s Formation with Resistance to Change, Following Worthwhile Changes," Journal of Optimization Theory and Applications, Springer, vol. 166(1), pages 172-187, July.
    7. Kely D. V. Villacorta & Paulo R. Oliveira & Antoine Soubeyran, 2014. "A Trust-Region Method for Unconstrained Multiobjective Problems with Applications in Satisficing Processes," Journal of Optimization Theory and Applications, Springer, vol. 160(3), pages 865-889, March.

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