Abstract:
ABSTRACT Human decision making often seems to be determined by the resolution of intrapersonal conflict. This paper conceptualizes the analysis of decisions governed by such dual‐self processes in individual decision contexts and strategic interactions. For this purpose, we define the solution concept Dual‐Selves Equilibrium and derive sufficient conditions for the existence of such equilibria. We show that our framework also helps to study the strategic interaction between boundedly rational players that have only one‐self. In particular, our results extend several equilibrium existence results in Behavioral Game Theory and provide a simple sufficient condition for equilibrium existence.
