AI Plays? {\delta}-Rationality Games with Nash Equilibrium as Special Case
Theoretical Economics
2025-06-23 v1
Abstract
A distortion function, which captures the payoff gap between a player's actual payoff and her true payoff, is introduced and used to analyze games. In our proposed framework, we argue that players' actual payoff functions should be used to explain and predict their behaviors, while their true payoff functions should be used to conduct welfare analysis of the outcomes.
Cite
@article{arxiv.2506.16467,
title = {AI Plays? {\delta}-Rationality Games with Nash Equilibrium as Special Case},
author = {Fang-Fang Tang and Yongsheng Xu},
journal= {arXiv preprint arXiv:2506.16467},
year = {2025}
}