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Maximal Elements Under Reference-Dependent Preferences with Applications to Behavioral Traps and Games

Journal of Optimization Theory and Applications, ISSN: 1573-2878, Vol: 155, Issue: 3, Page: 883-901
2012
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Article Description

We study reference-dependent preference relations defined by a real-valued bivariate function and prove an existence criterion for maximal elements. Then we formulate a generalized version of the well-known Brondsted maximum principle and apply it to behavioral traps and Nash equilibrium in games with preference relations that are not necessarily partial orders. © 2012 Springer Science+Business Media, LLC.

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