In the application of game theory into the scenario of selling and buying a product in real life, sellers and buyers concern not only the acquisition utility of the good but also the transaction utility. To this end, in this paper we develop a game model with payoff matrix of aggregating transaction utility and acquisition utility, where we set the perceived transaction utility of a customer according to prospect theory. Moreover, we also study how the equilibrium of a game of this kind is influenced by some irrational factors that can be reflected by transaction utility. Finally, we use our model explain why online promotion selling in Tmall.com on Singles’ Day is so successful in China.
Zhou, Xiaoyan and Luo, Xudong, "An Irrationally Rational Game Model" (2016). ICEB 2016 Proceedings. 76.