Information and Intertemporal Choices in Multi-Agent Decision Problems

Abstract

Psychological evidences of impulsivity and false consensus effect lead results far from rationality. It is shown that impulsivitymodifies the discount function of each individual, and false consensus effect increases the degree of consensus in a multi-agent decision problem. Analyzing them together we note that in strategic interactions these two human factors involve choices which change equilibriums expected by rational individuals.

Keywords

• Consensus, Intertemporal choice, Decisions