Mostafa Goudarzi (LUT Business School, Finland) 10.4.2025

It is our pleasure that Mostafa Goudarzi (LUT Business School, Finland) will present on Thursday, April 10, 2025, at 12:45 in room RB437 about the topic “Strategic Decision-Making under Uncertainty and Fairness Concerns: Experimental Evidence”.

Registration is not required and anyone who would like to attend is warmly invited.

It is also possible to participate online via MS Teams at this link. In case of any connection issues, please contact lubomir.cingl@vse.cz.

ABSTRACT: We investigate how fairness concerns affect competitors’ strategic decisions under uncertainty in sequential games. Two firms compete for an alliance offer from a third party. Acceptance yields a higher payoff through a fixed upfront payment and increased market share due to alliance synergies, leaving the other firm with smaller benefits. If one firm rejects, the offer is made to the other. If both decline, they share a smaller, uncertain market equally. Incorporating inequity aversion, we predict that higher uncertainty will amplify players’ payoff disparities, prompting players to favor fairer strategies over self-interested ones. A laboratory experiment supports our prediction: one-third of participants opted for fairer sharing as uncertainty increased. We further explore how uncertainty, beliefs, and inequity aversion interact in strategic competition.

BIO: He is a Postdoctoral Researcher in the Finance & Business Analytics Group and Ramp-Up Manager at Viipuri Lab, LUT Business School, Finland. His current focus is on the intricate dynamics of financial markets, exploring the interplay between algorithmic and human behavior. From uncovering high-frequency trading patterns using machine learning to investigating the psychological and network-based underpinnings of phenomena like meme stocks and rug-pulling events, he aims to understand how collective behaviors amplify volatility and shape market outcomes.