3 papers
econ.TH2024
Bargaining via Weber's law
V. G. Bardakhchyan, A. E. Allahverdyan
We solve the two-player bargaining problem employing Weber's law in psychophysics, which is applied to the perception of utility changes. Using this law, the players define the joi…
econ.TH2023
Ultimatum game: regret or fairness?
Lida H. Aleksanyan, Armen E. Allahverdyan, Vardan G. Bardakhchyan
In the ultimatum game, the challenge is to explain why responders reject non-zero offers thereby defying classical rationality. Fairness and related notions have been the main expl…
econ.TH2023
Regret theory, Allais' Paradox, and Savage's omelet
Vardan G. Bardakhchyan, Armen E. Allahverdyan
We study a sufficiently general regret criterion for choosing between two probabilistic lotteries. For independent lotteries, the criterion is consistent with stochastic dominance…