Bridging Utility Maximization and Regret Minimization

TL;DR

This paper explores the relationship between strategies derived from utility maximization and regret minimization, two fundamental models of rational decision-making in game theory.

Contribution

It establishes a connection between the strategy sets resulting from utility maximization and regret minimization, providing insights into their interplay.

Findings

Strategy sets from utility maximization can be related to those from regret minimization.

Refinement processes under both models lead to comparable strategic outcomes.

The work offers a unified perspective on two key rationality models in game theory.

Abstract

We relate the strategy sets that a player ends up with after refining his own strategies according to two very different models of rationality: namely, utility maximization and regret minimization.