Exploring the Behavior of Economic Agents: the role of relative preferences

Standard economic theory assumes individuals choose actions that optimize their expected utility. In this paper we investigate how the existence of players with non-standard preferences may influence economic agents' behavior in some of the most frequently studied non-cooperative games. We find that allowing for the existence of agents with relative preferences can help explain observed economic actions which, at times, appear counter-intuitive.

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Year of publication:	2006-02-21
Authors:	Cavanaugh, Joseph ; Alexopoulos, Michelle
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 12.2006, 2, p. 1-7
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Classification:	L2 - Firm Objectives, Organization, and Behavior ; D2 - Production and Organizations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010630275