Analysis of human behavior by experimental game-theoretic approach-Cooperative behavior, risk averse and seeking tendencies, and risk diversification

Atsuo Murata, Yasunari Matsushita, Saki Kubo, Makoto Moriwaka

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

(1)First, repeated ultimate game was carried out using a computer simulation. As a result, we confirmed that we never behave rationally as standard economics assumes. (2)Second, on the basis of prospect theory, the risk aversion and seeking tendencies were analyzed in gambling situations. It tended that the participant behaved risk-aversively in a gain condition, and showed a risk-seeking behavior in a loss condition. (3)Third, on the basis of the loss aversion property derived from prospect theory, we discussed the endowment effect. Stronger endowment effect was observed when the affection was attached to the object than when the affection was not attached to the object at all. (4)Fourth, as a result of exploring the relationship between the diversification of risk (accepting (taking) the total risk gradually by dividing it into a few steps) and the risk assessment, we tended to underestimate the total risk when the total risk was divided into a few risk-taking behaviors than when the total risk was taken at a time.

Original languageEnglish
Title of host publicationProceedings of the SICE Annual Conference
PublisherSociety of Instrument and Control Engineers (SICE)
Pages947-954
Number of pages8
ISBN (Electronic)9784907764463
DOIs
Publication statusPublished - Oct 23 2014
Event2014 53rd Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2014 - Sapporo, Japan
Duration: Sept 9 2014Sept 12 2014

Publication series

NameProceedings of the SICE Annual Conference

Other

Other2014 53rd Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2014
Country/TerritoryJapan
CitySapporo
Period9/9/149/12/14

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Computer Science Applications
  • Electrical and Electronic Engineering

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