Abstract
In this paper, we provide an interpretation of the rationality in game theory in which player consider the profit or loss of the opponent in addition to personal profit at the game. The goal of a game analysis with two hyper-rationality players is to provide insight into real-world situations that are often more complex than a game with two rational players where the choices of strategy are only based on individual preferences. The hyper-rationality does not mean perfect rationality but an insight toward how human decision-makers behave in interactive decisions. The findings of this research can help to enlarge our understanding of the psychological aspects of strategy choices in games and also provide an analysis of the decision-making process with cognitive economics approach at the same time.
Highlights
To date, the game theory has shown that it can model many interactive situations in which humans are selfinterested rational maximizer [4, 19]
We compared the concept of rationality and hyper-rationality
In the hyper-rationality concept, the player thinks about profit or loss of other players in addition to his personal profit or loss and will choose an action which is desirable to him, but in the the concept of rationality, each player only seeks his personal profit maximizer
Summary
The game theory has shown that it can model many interactive situations in which humans are selfinterested rational maximizer [4, 19]. The first class, set of individual preferences, includes three main behavioral options, individual profit, individual loss, indifferent between profit or loss, relates to the process of decision making when player faced with a problematic and significant choice situation, and choose an action based on self-interested. In this game, according to the concept of rationality, players haven’t the dominant action, but based on this concept of hyper-rationality, United States has the dominant action of profit for the Soviet Union and dominant action of loss for the Soviet Union, and the Soviet Union hasn’t the dominant action.
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