Decision Making & Consumers’ Behaviour: A Cognitive Game Approach

Abstract:     
This paper utilizes a theoretical analysis of a cognitive game approach to address the relationship between decision makers in the government of USA & consumers’ behaviour as an assessment of the payoff during the financial global crisis started in USA in the last quarter of 2007. The research starts with a strong assumption that the American consumer was the first node of a chain contains many other related economic variables and the reaction of consumers’ behaviour toward a specific government policy can affect all other sectors in a spiral manner. A cognitive game is utilized in this paper to explain consumers’ behaviours toward the expansionary government policies the government decided to adopt at times of the crisis. The paper also assumes a neural risk taker agent.

Keywords: government decision making, consumers’ spending, game theory analysis, the global financial crisis, USA

JEL Classification: G01, G02, H31, H53

working papers series