Hyper-Rational Choice and Economic Behaviour

Subject Areas : Financial Mathematics

Majid Eshaghi Gordji ¹ ( Department of Mathematics, Semnan University P.O. Box 35195-363, Semnan, Iran )
Gholamreza Askari ² ( Department of Mathematics, Semnan University P.O. Box 35195-363, Semnan, Iran )

Received: 2018-12-08 Accepted : 2018-12-08 Published : 2018-09-01

Keywords: Nash Equilibrium, Game Theory, Rationality, Economic behavior,

Abstract :

In this paper, with help of the concept of hyper-rationality, we model the interaction between two investment companies by an important game as trickery game that has special equilibrium which called hyper-equilibrium. In trickery game, one company can choose cooperation with another company until the last moment and finally changes his action to non-cooperation which incur more loss to an opponent. Indeed, the hyper-equilibrium is the point in which only one player can displace equilibrium to another point by changing his action which causes profit or loss to other players so they cannot change their action. Our findings indicate that the kind of behaviour interactive, environmental conditions, and valuation system are based on hostility causes an equilibrium point to incur the maximum loss to an opponent.

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