Article ID Journal Published Year Pages File Type
10437730 Journal of Economic Behavior & Organization 2005 10 Pages PDF
Abstract
The rank-dependent expected utility model is used to analyze a game involving a dinner date proposal. Alternative sharing rules are investigated: Dutch treat (both parties pay for their own dinner), and Oriental treat (the one making the invitation pays for both dinners). The solution depends on the sharing rule as well as optimism or pessimism regarding the chances of an invitation from the other party. Solutions that increase the chances of dinner indicate conditions under which optimism or pessimism is advantageous and might survive. Solutions that favor Dutch or Oriental treat suggest mechanisms by which alternative sharing rules might evolve.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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