Psychological Games in the Theory of Choice: Temptation, Perfectionism, Self-deception

In this paper we give a survey of recent work on game theory devoted to modeling decision making 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 criteria not reducible to a single one. In the first part of the survey we consider the behavior of agents subject to temptation, perfectionists, and persons susceptible to self-deceit.