Incorporating fairness motives and quantal response equilibrium concepts: an application to 2x2 games.
In: 14th Coalition Theory Network workshop, 23-24 Jan 2009, Maastricht, the Netherlands.
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Substantial evidence has accumulated in recent empirical works on the limited ability of the Nash equilibrium to rationalize observed behavior in many classes of games
played by experimental subjects. This realization has led to several attempts aimed at finding tractable equilibrium concepts which perform better empirically; one such example is the impulse balance equilibrium [Selten, Chmura, 2008], which introduces a psychological reference point to which players compare the available payoff allocations. This paper is concerned with advancing a new, empirically sound, concept that introduces a distributive reference point to established stationary equilibrium concepts such as impulse balance and quantal response.
Conference or Workshop Item
||© 2009 The Author
||Fairness, inequity aversion, aspiration level, impulse balance, quantal response,behavioral economics, experimental economics, jacknife estimator
|Library of Congress subject classification:
||H Social Sciences > HB Economic Theory
|Journal of Economic Literature Classification System:
||C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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