Reciprocal Preference Model for Two Player Dilemma Games

Asrar Ahmed, Kamalakar Karlapalem

Abstract: Results from behavioral economics show that individuals do not always maximize monetary payoffs. Within behavioral economics different models of social preference have been put forth to account for this deviation from standard assumptions of game theory and economics. Incorporating such models into agent decision making is increasingly relevant to design systems which interact with or on behalf of humans. Existing models, which correctly predict outcomes across a large set of games, are fairly complex. To this end, we present aspiration based social preference model and evaluate it by considering two player dilemma games. We show that the qualitative predictions of our model are consistent with results from behavioral economics.