Psychological Game Theory: A Review of Current Literature

D. Neicu

Review of Business and Economic Literature, 2012, vol. 57, issue 1, 37-60

Abstract: Experimental evidence appears to contradict traditional game theory predictions in numerous settings. Although a solid basis for characterizing equilibria, game theory needed to – and to some extent did – go through some major developments and transgress the barriers between different social sciences to more accurately depict human behaviour in economic circumstances. Psychological game theory, first developed in the 80s, is one such advancement. By integrating beliefs directly within utility, it seeks to tie affective psychology to economic choice and thus better predict decision making. This paper reviews existing literature on psychological game theory and a strand of prospect theory relevant to emotional decision-making, and proposes further refinements and possible extensions.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sen:rebelj:v:57:i:1:y:2012:p:37-60

Access Statistics for this article

Review of Business and Economic Literature is currently edited by Hans Kluwer

More articles in Review of Business and Economic Literature from Intersentia
Bibliographic data for series maintained by Petra Van den Bempt ( this e-mail address is bad, please contact ).