A central question in game theory and artificial intelligence is how a rational agent should behave in a complex …

Consider a game where Alice generates an integer and Bob wins if he can factor that integer. Traditional game theory …

described by the economic theory. We determine a significant influence of the labeling and the earmarking of taxes. We can show …

"This paper proposes a model in which the decision maker builds an optimally simplified representation of the world … maximization problems. The agent's choice of a representation of the world features a quadratic proxy for the benefits of thinking … the world. This model yields a tractable procedure, which embeds the traditional rational agent as a particular case, and …

world that fails to distinguish between some states. In the limit as the period length vanishes, these distortions take a … using a simplified model of the world, some agents overestimate the likelihood of small probability events, as in prospect … theory. …