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| Joseph Cavanaugh and Michelle Alexopoulos |
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| ''Exploring the Behavior of Economic Agents: the role of relative preferences'' |
| ( 2006, Vol. 12 No.2 ) |
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| 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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| Keywords: |
JEL: L2 - Firm Objectives, Organization, and Behavior: General
D2 - Production and Organizations: General |
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| Manuscript Received : Feb 12 2006 | | Manuscript Accepted : Feb 21 2006 |
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