Modeling human distributed decision-making with individual objectives

Abstract

A mathematical model for studying human distributed decision-making with individual objectives is presented. The model is developed based on game theory and formulated as a nonzero-sum dynamic Nash game. Incorporating cognitive psychology findings, the model considers human decision-makers' perceived game trees with a small number of stages supplemented by the attractive measures of future decisions. By combining the Nash solution concept with relevant descriptive factors, this study provides a simple and realistic way to model humans' decision-making process. >