Two-Person Second-Order Games, Part 1: Formulation and Transition Anatomy

P. L. Yu () and M. Larbani ()
Additional contact information
P. L. Yu: National Chiao Tung University
M. Larbani: Kainan University

Journal of Optimization Theory and Applications, 2009, vol. 141, issue 3, No 8, 619-639

Abstract: Abstract It is well known that human psychology determines his/her action and behavior. This fact has not been fully incorporated in game theory. This paper intends to incorporate human psychology in formulating games as people play them. In Part 1 of the paper, we formulate a two-person game by the habitual domain theory and the Markov chain theory. Using the habitual domains theory, we present a new model describing the evolution of the states of mind of players over time, the two-person second-order game. We introduce the concept of the focal mind profile as well as the solution concept of the win-win mind profile. In addition, we provide also a method to predict the average number of steps needed for a game to reach a focal or win-win mind profile. Then, in Part 2 of the paper, under some reasonable assumptions, we derive the possibility theorem stating that it is always possible to reach a win-win mind profile when suitable conditions are satisfied.

Keywords: Habitual domains; Normal form games; Second-order games; Win-win mind profiles; Markov chains (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10957-008-9487-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:joptap:v:141:y:2009:i:3:d:10.1007_s10957-008-9487-y

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10957/PS2

DOI: 10.1007/s10957-008-9487-y

Access Statistics for this article

Journal of Optimization Theory and Applications is currently edited by Franco Giannessi and David G. Hull

More articles in Journal of Optimization Theory and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().