In their famous work on prospect theory Kahneman and Tversky have presented a couple of examples where human decision making deviates from rational decision making as defined by decision theory. This paper describes the use of extended behavior networks to model human decision making in the sense of prospect theory. We show that the experimental findings of non-rational decision making describe...

Humans are without any doubts the prototypical example of agents that can hold rational beliefs and can show rational behavior. If an AGI system is intended to model the full breadth of human-level intelligence, it is reasonable to take the remarkable abilities of humans into account with respect to rational behavior, but also the apparent deficiencies of humans in certain rationality tasks. Ba...

££ Many experiments have shown that human subjects do not necessarily behave in line with game theoretic solution concepts. The reasons for this non–conformity are multiple. In this paper we study the argument whether a deviation from game theory is because subjects are rational, but doubt that others are rational as well, compared to the argument that subjects, in general, are boundedly ration...

We move from a boundedly rational consumer model Naimzada and Tramontana, 2008, 2010 characterized by a gradient-like decisional process in which, under particular parameters conditions, the asymptotical convergence to the optimal choice does not happen but it does under a least squared learning mechanism. In the present paper, we prove that even a less sophisticated learning mechanism leads to...

The aim of this paper is to analyse the effect introduced in the dynamics of a financial market when agents anticipate the occurrence of a correlation breakdown.What emerges is that correlation breakdowns can act both as a consequence and as a triggering factor in the emergence of financial crises rational bubbles. We propose a market with two kinds of agents: speculators and rational investors...