Behavioral game theory assumes
A)people act rationally.
B)people have limited calculation capability or psychological biases that cause them to act irrationally.
C)that people behave differently when playing games than when "playing for real."
D)people overcome their psychological biases.

Question

Quizplus · Accepted Answer

Behavioral game theory is based on the assumption that people's actions in a strategic interaction are influenced by their psychological biases or limited cognitive abilities, leading to potentially irrational behavior.

Behavioral Game Theory Assumes