Traditional models of decision-making assume the existence of an external frame of reference for measuring the value of possible outcomes. We show that this fundamental assumption prevents classical decision models from predicting realistic decision-making behavior. Making an alternative relativistic assumption about the nature of reward leads us to formalize a rational agent as one which minim...

In this paper we are interested in developing goal-based normative agent architectures. We ask ourselves the question what a normative goal is. To answer this question we introduce a qualitative normative decision theory based on belief (B) and obligation (O) rules. We show that every agent which makes optimal decisions – which we call a BO rational agent – acts as if it is maximizing the set o...

Computer-based agents, in various forms, are becoming actively involved in our personal and professional decisions and deliberations. We interact with them; they interact with each other. In this paper we describe a broad Model Social Agent study where we explore how boundedly-rational agents with emotion behave across increasingly social contexts, and the impact of cooperation, trust, rumor, a...

We introduce a class of resource games where resources and preferences are described with the language of a resource-sensitive logic. We present two decision problems, the first of which is deciding whether an action profile is a Nash equilibrium. When dealing with resources, interesting questions arise as to whether some undesirable equilibria can be eliminated by a central authority by redist...

Invariably across a cross-section of countries and time periods, wealth distributions are skewed to the right displaying thick upper tails, that is, large and slowly declining top wealth shares. In this survey we categorize the theoretical studies on the distribution of wealth in terms of the underlying economic mechanisms generating skewness and thick tails. Further, we show how these mechanis...

This paper develops a sequential random matching model of asset trading to analyze how the extent of information about an asset that is available in the market can affect its tradeability. Liquidity traders are rational agents with higher impatience, which make optimal intertemporal consumption decisions given the trading constraints. Information asymmetries result in unexecuted trades. Agents ...

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...