Authors: Ramzi Suleiman
We propose a novel model of aspiration levels for interactive games, termed economic harmony. The model posits that the individuals' levels of outcome satisfaction are proportional to their actual outcomes relative to their aspired outcomes. We define a state of harmony as a state at which the interacting players' levels of outcome satisfaction are equal, and underscore the necessary condition for the manifestation and sustenance of harmony situations on the behavioral level. We utilize the proposed model to predict the transfer decisions in a class of two-person ultimatum games, including the standard ultimatum game, an ultimatum game with asymmetric information about the size of the "pie", an ultimatum game with varying veto power. We also apply the model to predicting behavior in a three person ultimatum game with uncertainty regarding the identity of the recipient and in a sequential common pool resource game. For all the aforementioned games, we show that the model accounts well for large sets of experimental data, and with the predictions of game theory and other relevant models of interactive situations. Strikingly, for the standard ultimatum game, the model predicts that the allocator should transfer a proportion of the entire sum that equals 1- Φ, where Φ is the famous Golden Ratio, most known for its aesthetically pleasing properties.
Comments: 35 Pages.
[v1] 2014-12-08 16:29:25
Unique-IP document downloads: 157 times
Vixra.org is a pre-print repository rather than a journal. Articles hosted may not yet have been verified by peer-review and should be treated as preliminary. In particular, anything that appears to include financial or legal advice or proposed medical treatments should be treated with due caution. Vixra.org will not be responsible for any consequences of actions that result from any form of use of any documents on this website.
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.