Many weaknesses of game theory are cured by new models that embody simple cognitive principles, while maintaining the formalism and generality that makes game theory useful. Social preference models can generate team reasoning by combining reciprocation and correlated equilibrium. Models of limited iterated thinking explain data better than equilibrium models do; and they self-repair problems of implausibility and multiplicity of equilibria.

Binmore argues that game theory provides a systematic tool for investigating ethical matters.

In this article, I critically respond to Herbert Gintis's criticisms of the behavioral-economic foundations of Ken Binmore 's game-theoretic theory of justice. Gintis, I argue, fails to take full account of the normative requirements Binmore sets for his account, and also ignores what I call the ‘scale-relativity’ considerations built into Binmore 's approach to modeling human evolution. Paul Seabright's criticism of Binmore, I note, repeats these oversights. In the course of answering Gintis's and Seabright's objections, I clarify and (...) extend Binmore 's theory in a number of respects, integrating it with Kim Sterelny's and Don Ross's recent work on the evolution of people as cultural entities. The account also yields a novel basis for choosing between socialism and what Binmore calls ‘whiggery’ as normative political programs. Key Words: theory of justice • bargaining theory • evolutionary game theory • human evolution • Ken Binmore • Herbert Gintis • Kim Sterelny. (shrink)

In the last few decades game theory has emerged as a powerful tool for examining a broad range of philosophical issues. It is unsurprising, then, that game theory has been taken up as a tool to examine issues in the philosophy of religion. Economist Steven Brams (1982), (1983) and (2007), for example, has given a game theoretic analysis of belief in God, his main argument first published in this journal and then again in both editions (...) of his book, Superior Beings. I have two main aims in this paper, one specific and one general. My specific aim is to show that Brams’ application of game theory to examine belief in God is, in particular, deeply flawed in two respects. My general aim is to show that any game-theoretic model in which a human being and God are players can only succeed at the cost of abandoning the assumption that God is omnibenevolent. (shrink)

Game theory based on rational choice is compared with game theory based on evolutionary, or other adaptive, dynamics. The Nash equilibrium concept has a central role to play in both theories, even though one makes extremely strong assumptions about cognitive capacities and common knowledge of the players, and the other does not. Nevertheless, there are also important differences between the two theories. These differences are illustrated in a number of games that model types of interaction that (...) are key ingredients for any theory of the social contract. (shrink)

Over the past two decades, academic economics has undergone a mild revolution in methodology. The language, concepts and techniques of noncooperative game theory have become central to the discipline. This book provides the reader with some basic concepts from noncooperative theory, and then goes on to explore the strengths, weaknesses, and future of the theory as a tool of economic modelling and analysis. The central theses are that noncooperative game theory has been a remarkably (...) popular tool in economics over the past decade because it allows analysts to capture essential features of dynamic competition and competition where some parties have proprietary information. The theory is weakest in providing a sense of when it - and equilibrium analysis in particular - can be applied and what to do when equilibrium analysis is inappropriate. Many of these weaknesses can be addressed by the consideration of individuals who are boundedly rational and learn imperfectly from the past. Written in a non-technical style and working by analogy, the book, first given as part of the Clarendon Lectures in Economics, is readily accessible to a broad audience and will be of interest to economists and students alike. Knowledge of game theory is not required as the concepts are developed as the book progresses. (shrink)

Game theory is a branch of mathematics that studies strategic interactions, i.e., interactions which involve more than one agent and in which each agent makes her/his decision while striving to predict the decisions of other agents. Game theory has been successfully applied in many areas of both the natural and social sciences, and it is the belief of this book's author that it can also be gainfully invoked in the area of legal philosophy. In this book, (...) Wojciech Zaluski analyzes legal-philosophical concepts - such as legal interpretation, justice, legal rights, contract law, tort law, and property law - through the lens of game theory. The book appeals mainly to game theory's conceptual rather than the technical side, and intertwines game-theoretical analysis with the philosophical. It will be accessible to a wider circle of readers interested in legal and moral philosophy. (shrink)

Peter Vanderschraaf. Game Theory, Evolution and Justice.

We develop an analysis of discourse anaphora—the relationship between a pronoun and an antecedent earlier in the discourse —using games of partial information. The analysis is extended to include information from a variety of different sources, including lexical semantics, contrastive stress, grammatical relations, and decision theoretic aspects of the context.

I discuss how simulating another agent can be useful in some game-theoretical situations, particularly iterated games such as the centipede game.

When von Neumann's and Morgenstern's Theory of Games and Economic Behavior appeared in 1944, one thought that a complete theory of strategic social behavior had appeared out of nowhere. However, game theory has, to this very day, remained a fast-growing assemblage of models which have gradually been united in a new social theory - a theory that is far from being completed even after recent advances in game theory, as evidenced by the (...) work of the three Nobel Prize winners, John F. Nash, John C. Harsanyi, and Reinhard Selten. Two of them, Harsanyi and Selten, have contributed important articles to the present volume. This book leaves no doubt that the game-theoretical models are on the right track to becoming a respectable new theory, just like the great theories of the twentieth century originated from formerly separate models which merged in the course of decades. For social scientists, the age of great discover ies is not over. The recent advances of today's game theory surpass by far the results of traditional game theory. For example, modem game theory has a new empirical and social foundation, namely, societal experiences; this has changed its methods, its "rationality. " Morgenstern (I worked together with him for four years) dreamed of an encompassing theory of social behavior. With the inclusion of the concept of evolution in mathematical form, this dream will become true. Perhaps the new foundation will even lead to a new name, "conflict theory" instead of "game theory. (shrink)

The prelims comprise: Strategic Interaction Nash Equilibrium Normal‐form Refinements Games in Extensive Form Extensive‐form Refinements Selection by Evolution Notes.

I resolve a previously unnoticed anomaly in the analysis of collective action problems. Some political theorists apply game theory to analyze the paradox of anarchy: War is apparently inevitable in anarchy even though all warring parties prefer peace over war. Others apply tipping threshold analysis to resolve the paradox of revolution: Joining a revolution is apparently always irrational even when an overwhelming majority of the population wish to replace their regime. The usual game theoretic analysis of anarchy (...) yields the conclusion that the suboptimal equilibrium of war is inevitable. The usual tipping threshold analysis of revolution yields the conclusion that the optimal equilibrium of successful revolution is possible. Yet structurally the collective action problems of anarchy and potential revolution are much the same. This suggests that tipping threshold analysis and game theory are incompatible methodologies, despite their widespread use in the social sciences. I argue that there is no real tension between game theory and tipping threshold analysis, even though these methodologies have developed largely independently of each other. I propose a Variable Belief Threshold model of collective action that combines elements of game theory and tipping threshold analysis. I show by example that one can use this kind of hybrid model to give compatible explanations of conflict in anarchy and successful revolution.1. Introduction2. Two Classic Problems, and Two Popular Analyses2.1. The paradox of anarchy2.2. The paradox of revolution3. Restating the Puzzle4. Evaluating the Prisoners’ Dilemma and S-Curve Models5. The Variable Belief Threshold ModelExample 5.1. A population of moderates with independent deviationsExample 5.2 A heterogeneous population with independent deviationsExample 5.3 A heterogeneous population with coordinated deviations6. ConclusionAppendix: Computer Simulations. (shrink)

In the literature there are at least two main formal structures to deal with situations of interactive epistemology: Kripke models and type spaces. As shown in many papers :149–225, 1999; Battigalli and Siniscalchi in J Econ Theory 106:356–391, 2002; Klein and Pacuit in Stud Log 102:297–319, 2014; Lorini in J Philos Log 42:863–904, 2013), both these frameworks can be used to express epistemic conditions for solution concepts in game theory. The main result of this paper is a (...) formal comparison between the two and a statement of semantic equivalence with respect to two different logical systems: a doxastic logic for belief and an epistemic–doxastic logic for belief and knowledge. Moreover, a sound and complete axiomatization of these logics with respect to the two equivalent Kripke semantics and type spaces semantics is provided. Finally, a probabilistic extension of the result is also presented. A further result of the paper is a study of the relationship between the epistemic–doxastic logic for belief and knowledge and the logic STIT by Belnap and colleagues. (shrink)

Originally used to decipher the 1950s nuclear stalemate, the “Prisoner’s Dilemma” might reveal how resources are unfairly distributed today.

In its classical conception, game theory aspires to be a determinate decision theory for games, understood as elements of a structurally specified domain. Its aim is to determine for each game in the domain a complete solution to each player's decision problem, a solution valid for all real-world instantiations, regardless of context. "Permissiveness" would constrain the theory to designate as admissible for a player any conjecture consistent with the function's designation of admissible strategies for the (...) other players. Given permissiveness and other appropriate constraints, solution sets must contain only Nash equilibria and at least one pure-strategy equilibrium, and there is no solution to games in which no symmetry invariant set of pure-strategy equilibria forms a Cartesian product. These results imply that the classical program is unrealizable. Moreover, the program is implicitly committed to permissiveness, through its common-knowledge assumptions and its commitment to equilibrium. The resulting incoherence deeply undermines the classical conception in a way that consolidates a long series of contextualist criticisms. (shrink)

I offer two potential diagnoses of the behavioral norms governing post‐truth politics by comparing the view of language, communication, and truth‐telling put forward by David Lewis (extended by game theorists), and John Searle. My first goal is to specify the different ways in which Lewis, and game theorists more generally, in contrast to Searle (in the company of Paul Grice and Jurgen Habermas), go about explaining the normativity of truthfulness within a linguistic community. The main difference is that (...) for Lewis and game theorists, “truthful” signaling follows from an align- ment of interests, and deception follows from mixed motives leading to the calculation that sending false information is better for oneself. Following in the Enlightenment tradition, Searle argues that practical reasoning, which involves mastery of at least one language, requires that actors intend to communicate. This intention includes constraining the content of statements to uphold veracity conditions. After distinguishing between these two accounts, I will artic- ulate the implications for explaining, and even informing actions, constitutive of post‐truth politics. I argue that the strategic view of communication is suffi- cient neither to model everyday conversation nor to reflect a public sphere useful for democratic govern- ment. Both the pedagogy of strategic communication as cheap talk, and its concordance with new digital information technologies, challenge norms of truthful- ness that underlie modern institutions essential to an effective public sphere. (shrink)

In this paper I want to deal with game theory, experience and rationality, and I will try to put these into historical perspective.

In numerous studies, experimental economists have documented the fact that people tend to propose that divisible goods be divided equally. It has often been proposed, most notably by the sociobiologists, that this tendency may have a biological basis, and might be the product of evolution and natural selection. ;My dissertation addresses methodological and philosophical problems that arise in the course of establishing this naturalistic claim. Specifically, the focus of this dissertation is on the project of using evolutionary game (...) class='Hi'>theory to model the emergence of behavioral norms in a population. ;Chapter 1 briefly surveys the experimental economics literature that supports the existence of such behavioral propensities, and gives an overview of the dissertation. Chapter 2 introduces the fundamental concepts of game theory and evolutionary game theory. Chapter 3 argues that certain robustness failures may be overcome if group selection mechanisms are incorporated into the evolutionary models. Chapter 5 defends Peter Railton's causal theory of explanation, and argues that it best accommodates the dynamical models of evolutionary game theory. Chapter 6 addresses the question of whether a descriptive account of the origins of our moral intuitions is relevant to the normative project of identifying our moral obligations, and critiques arguments by Peter Singer and Peter Unger that our moral intuitions lack justification. (shrink)

Should evolution replace rational choice as the guiding paradigm for game theory? Evolutionary game theory provides an intriguing perspective from which to critique the hyper-rational assumptions of classical economic game theory. In contrast to economic game theory, evolutionary game theory is better suited to descriptive rather than normative domains. It is argued that a pluralism of paradigms holds the best promise for theoretical innovation in game theory.

David Hume’s Treatise on Human Nature famously fell `deadborn from the press’ because it was too far ahead of its time. Basu’s book is one of a number published in recent years that suggest we are at last ready to put its precepts into action.1 Modern game theory provides a framework that makes Hume’s insights genuinely applicable, and I totally agree with Basu that this is not only the right way forward, but that it now looks increasingly likely (...) that this is the road that wil actualy be folowed ± not only in political economy, but across the board in the social sciences. (shrink)

Since Neumann and Morgenstern’s theory of games, the debate among social scientists, economists, mathematicians, and social philosophers about what kind of theory it is has not ended. Some think that it is a new interdiscipline, some that it is a mere accumulation of gametheoretical models, such as utility theory, competitive, cooperative, collective choice models, and so on. Most of them agree that the models of game theory deal with isolated, single, and independent specific societal interactions (...) between individuals who wish to maximize their gains and minimize their losses within prescribed constraining rules. (shrink)

Economists interpret global environmental quality to be a pure public good. Each country should contribute to its provision. However, this is hard to achieve because each government is tempted to take a free ride on the other governments' efforts. Not only has this dilemma been analysed with game theoretical methods but game theory has also been used to think about how to make amends. This paper reviews the game theoretical discussion on how international policy frameworks may (...) be designed to improve the chances for international cooperation. It is also shown that the evaluation of alternative environmental policy instruments deviates from the standard environmental economics model if applied to the international arena. For the benefit of an interdisciplinary readership, the evolution of the debate on global environmental policy is related to the recent history of economic thought. This history is taken to be materialised in the writings of economics' Nobel Prize laureates. (shrink)

This informal position paper brings together some recent developments in formal semantics and pragmatics to argue that the discipline of Game Theory is well placed to become the theoretical backbone of Natural Language Generation. To demonstrate some of the strengths and weaknesses of the Game-Theoretical approach, we focus on the utility of vague expressions. More specifically, we ask what light Game Theory can shed on the question when an NLG system should generate vague language.

Game theorists tend to model climate negotiations as a so-called ‘tragedy of the commons’. This is rather worrisome, since the conditions under which such commons problems have historically been solved are almost entirely absent in the case of international greenhouse gas emissions. In this paper, I will argue that the predictive accuracy of the tragedy model might not stem from the model’s inherent match with reality but rather from the model’s ability to make self-fulfilling predictions. I then sketch some (...) possible ways to dispel the tragedy, including (1) recognizing some ways the assumptions of the model fail, (2) taking seriously recent work suggesting that increasing greenhouse gas emissions is not in most nations’ own self-interest, and (3) preferring alternative models like collective risk dilemmas, bargaining games, or cooperative models. (shrink)

Game theory is a mathematical theory of strategic interactions between rational agents. With much success, it has been widely applied in various areas of the social sciences, especially economics and sociology. However, it has been relatively and rarely used in the analyses pursued in legal theory and legal dogmatics. The present collection fills this gap and discusses game theory as a useful tool for legal scholars in solving the various problems of legal philosophy or (...) legal dogmatics. It also includes two skeptical voices regarding the applicability of game theory in legal analysis. The book will be useful for scholars in the field of legal theory, as well as for philosophers and economists. (shrink)

The bi-polar confrontation between the Soviet Union and the USA involved many leading game theorists from both sides of the Iron Curtain: Oskar Morgenstern, John von Neumann, Michael Intriligator, John Nash, Thomas Schelling and Steven Brams from the United States and Nikolay Vorob’ev, Leon A. Petrosyan, Elena B. Yanovskaya and Olga N. Bondareva from the Soviet Union. The formalization of game theory (GT) took place prior to the Cold War but the geopolitical confrontation hastened and shaped its (...) evolution. In our article we outline four similarities and differences between Western GT and Soviet GT: 1) the Iron Curtain resulted in a lagged evolution of GT in the Soviet Union; 2) Soviet GT focused more on operations research and issues of centralized planning; 3) the contemporary Western view on Soviet GT was biased and Soviet contributions, including works on dynamic stability, non-emptiness of the core and many refinements, suggest that Soviet GT was able to catch up to the Western level relatively fast; 4) international conferences, including Vilnius, 1971, fostered interaction between Soviet game theorists and their Western colleagues. In general, we consider the Cold War to be a positive environment for GT in the West and in the Soviet Union. (shrink)

This paper does not deal with the applications of game theory for which this theory was first developed, that is, for modelling economic systems and rational decision making. But I do not want to consider games as abstract mathematical structures, either. I want to concentrate on what it is that makes a game actually playable. This playability means both the possibility of finding and formulating the strategy that a player uses and the feasibility of actually applying (...) the strategy in question in making one’s moves. (shrink)

Fundamental aspects of human use of the environment can be explained by game theory. Game theory explains aggregate behaviour of the human species driven by perceived costs and benefits. In the ‘game’ of global environmental protection and conservation, the stakes are the living conditions of all species including the human race, and the playing field is our planet. The question is can we control humanity's hitherto endless appetite for resources before we irreparably harm the global (...) ecosystem and cause extinction of even more species? The central problem is that some proportion of the individuals or groups will behave selfishly. The inducement for using more than a fair share, or ‘cheating’, increases as that resource becomes rarer, thus the benefits of cheating increase. In addition, the total number of people is increasing, so the proportion of cheaters must decrease to even keep total resource use constant. Cost benefit analysis of the effect of regulation and incentives on potential cheaters may provide a rational approach to controlling environmental problems. While it is debatable that environmental values are constant across cultures, communal use of resources seems to follow global rules. Cooperative use and punishment of those who use more than their share appear to be ubiquitous in human societies. Schemes for controlling human impact on the global environment must take into consideration basic behaviours including development of social norms and the positive feedback created because resources become more valuable with increasing rarity leading to more incentive for consumption. (shrink)

The paper begins by providing a game-theoretic reconstruction of Gilbert’s (1989) philosophical critique of Lewis (1969) on the role of salience in selecting conventions. Gilbert’s insight is reformulated thus: Nash equilibrium is insufficiently powerful as a solution concept to rationalize conventions for unboundedly rational agents if conventions are solutions to the kinds of games Lewis supposes. Both refinements to NE and appeals to bounded rationality can plug this gap, but lack generality. As Binmore (this issue) argues, evolutive game (...) theory readily explains the origin of conventional behavior, but that is not Lewis’s project. Gilbert’s critique is generalized by reference to Bacharach’s (2006) work on team reasoning in games. The paper then argues that although Lewis’s account of the rationalization of conventions is shown by the reconstruction of Gilbert’s critique to be incomplete, Gilbert is wrong to conclude that classical (‘eductive’) game theory lacks the resources to explain conformity to conventions among people. A game-theoretic account of the dynamics of socialization, based on Ross’s (2005, 2006) idea of ‘game determination’, rationalizes choices of conventional strategies in overlapping generations contexts, provided agents are products of evolutionary selection and know that other players are also such products. (shrink)

Our power of guessing corresponds to a bird's musical and aeronautical powers.There still remains one more economic consideration in reference to a hypothesis; namely, that it may give a good "leave," as the billiard players say.There is a game called "Twenty Questions," in which one party thinks of something well known to the other, who may then ask at most twenty questions answerable by yes or no, after which he has a right to make three guesses. … The principle (...) of pragmatism is applicable here.One of the more intriguing lines of thought in the writings of Peirce stems from a number of brief statements that seem to be game-theoretic in nature. Often they appear to be constructed to support or illustrate a broader... (shrink)

The sense of agency – the subjective feeling of being in control of our own actions – is one central aspect of the phenomenology of action. Computational models provided important contributions toward unveiling the mechanisms underlying the sense of agency in individual action. In particular, the sense of agency is believed to be related to the match between the actual and predicted consequences of our own actions (comparator model). In the study of joint action, models are even more necessary to (...) understand the mechanisms underlying the development of coordination strategies and how the subjective experiences of control emerge during the interaction. In a joint action, we not only need to predict the consequences of our own actions; we also need to predict the actions and intentions of our partner, and to integrate these predictions to infer their joint consequences. Understanding our partner and developing mutually satisfactory coordination strategies are key components of joint action and in the development of the sense of joint agency. Here we discuss a computational architecture which addresses the sense of agency during intentional, real-time joint action. We first reformulate previous accounts of the sense of agency in probabilistic terms, as the combination of prior beliefs about the action goals and constraints, and the likelihood of the predicted movement outcomes. To look at the sense of joint agency, we extend classical computational motor control concepts - optimal estimation and optimal control. Regarding estimation, we argue that in joint action the players not only need to predict the consequences of their own actions, but also need to predict partner’s actions and intentions (a ‘partner model’) and to integrate these predictions to infer their joint consequences. As regards action selection, we use differential game theory – in which actions develop in continuous space and time - to formulate the problem of establishing a stable form of coordination and as a natural extension of optimal control to joint action. The resulting model posits two concurrent observer-controller loops, accounting for ‘joint’ and ‘self’ action control. The two observers quantify the likelihoods of being in control alone or jointly. Combined with prior beliefs, they provide weighing signals which are used to modulate the ‘joint’ and ‘self’ motor commands. We argue that these signals can be interpreted as the subjective sense of joint and self agency. We demonstrate the model predictions by simulating a sensorimotor interactive task where two players are mechanically coupled and are instructed to perform planar movements to reach a shared final target by crossing two differently located intermediate targets. In particular, we explore the relation between self and joint agency and the information available to each player about their partner. The proposed model provides a coherent picture of the inter-relation of prediction, control, and the sense of agency in a broader range of joint actions. (shrink)

Game theory is the systematic study of interdependent rational choice. It should be distinguished from decision theory, the systematic study of individual (practical and epistemic) choice in parametric contexts (i.e., where the agent is choosing or deliberating independently of other agents). Decision theory has several applications to ethics (see Dreier 2004; Mele and Rawlings 2004). Game theory may be used to explain, to predict, and to evaluate human behavior in contexts where the outcome of (...) action depends on what several agents choose to do and where their choices depend on what others choose to do. (See the entry on game theory) Game theory consequently is relevant to ethics, and it is used in moral and political philosophy in a variety of ways. We shall concentrate on the influence and use of game theory in ethics and those parts of political theory involving norms or principles of justice, ignoring questions about political and legal institutions on the one hand and questions about issues dealing with moral virtues on the other. (shrink)

This is a brief historical note on game theory. We cover its historical roots (prior to its formal definition in 1944), and look at its development until the late 1960's.

Is capitalism inherently predatory? Must there be winners and losers? Is public interest outdated and free-riding rational? Is consumer choice the same as self-determination? Must bargainers abandon the no-harm principle? Prisoners of Reason recalls that classical liberal capitalism exalted the no-harm principle. Although imperfect and exclusionary, modern liberalism recognized individual human dignity alongside individuals' responsibility to respect others. Neoliberalism, by contrast, views life as ceaseless struggle. Agents vie for scarce resources in antagonistic competition in which every individual seeks dominance. This (...) political theory is codified in non-cooperative game theory; the neoliberal citizen and consumer is the strategic rational actor. Rational choice justifies ends irrespective of means. Money becomes the medium of all value. Solidarity and good will are invalidated. Relationships are conducted on a quid pro quo basis. However, agents can freely opt out of this cynical race to the bottom by embracing a more expansive range of coherent action. (shrink)

A feature of David Lewis's account of conventions in his book "Convention" which has received admiring notices from philosophers is his use of the mathematical theory of games. In this paper I point out a number of serious flaws in Lewis's use of game theory. Lewis's basic claim is that conventions cover 'coordination problems'. I show that game-Theoretical analysis tends to establish that coordination problems in Lewis's sense need not underlie conventions.

Interdisciplinary research is becoming more and more popular. Many funding bodies encourage interdisciplinarity, as a criterion that promises scientific progress. Traditionally this has been linked to the idea of integrating or unifying disciplines. Using evolutionary game theory as a case study, Till Grüne-Yanoff (2016) argued that there is no such necessary link between interdisciplinary success and integration. Contrary to this, this paper argues that evolutionary game theory is a genuine case of successful integration between economics and (...) biology, shedding lights on the many dimensions along which integration can take place. (shrink)

This informal position paper brings together some recent developments in formal semantics and pragmatics to argue that the discipline of Game Theory is well placed to become the theoretical backbone of Natural Language Generation. To demonstrate some of the strengths and weaknesses of the Game-Theoretical approach, we focus on the utility of vague expressions. More specifically, we ask what light Game Theory can shed on the question when an NLG system should generate vague language.

Game theory is the mathematical study of strategy and conflict. It has wide applications in economics, political science, sociology, and, to some extent, in philosophy. Where rational choice theory or decision theory is concerned with individual agents facing games against nature, game theory deals with games in which all players have preference orderings over the possible outcomes of the game. This paper gives an informal introduction to the theory and a survey of (...) applications in diverse branches of philosophy. No criticism is reviewed. Game theory is shown at work in discussions about epistemological dependence, liberalism and efficiency, Hume’s concept of convention, morality and rationality, and distributive justice and egalitarianism. A guide to the literature provides hints at applications in collective intentionality, epistemology, ethics, history of philosophy, logic, philosophy of language, and political philosophy. (shrink)

Applications of game theory to moral philosophy are impededby foundational issues and troublesome examples. In the first part of this paper,questions are raised about the appropriate game-theoretical frameworks for applications to moralphilosophy and about the proper interpretations of the theoretical devices employed inthese frameworks. In the second part, five examples that should be of particular interest to thoseinterested in the connections between ethics and game theory are delineated and discussed. Thefirst example comprises games in which (...) there is an outcome unanimously preferred to the``solution'' of the game, appropriately defined. The second comprises games whose solution callsfor different players to employ different strategies. The third comprises games whosesolution calls for players to adopt mixed strategies. The fourth comprises games whose solutionrequires players to cycle among a variety of strategies. The fifth comprises games whose solutionrequires players to discriminate in morally inappropriate ways. (shrink)

Libertarians claim that human behaviour is undetermined and cannot be predicted from knowledge of past history even in principle since it is based on the random movements of quantum mechanics. Determinists on the other hand deny thatmacroscopic phenomena can be activated bysub-microscopic events, and assert that if human action is unpredictable in the way claimed by libertarians, it must be aimless and irrational. This is not true of some types of random behaviour described in this paper. Random behaviour may make (...) one unpredictable to opponents and may therefore be rational. Similarly, playing a game with a mixed strategy may have an unpredictable outcome in every single play, but the strategy is rational, in that it is meant to maximize the expected value of an objective, be it private or social. As to whether the outcome of such behaviour is genuinely unpredictable as in quantum mechanics, or predictable by a hypothetical outside observer knowing all natural laws, it is argued that it makes no difference in practice, as long as it is not humanly predictable. Thus we have a new version of libertarianism which is compatible with determinism. (shrink)

It is widely believed that experimental results of behavioral game theory undermine standard economic and game theory. This paper suggests that experimental results present serious theoretical modeling challenges, but do not undermine two pillars of contemporary economic theory: the rational actor model, which holds that individual choice can be modeled as maximization of an objective function subject to informational and material constraints, and the incentive compatibility requirement, which holds that macroeconomic quantities must be derived from (...) the interaction and aggregation of individual choices. However, we must abandon the notion that rationality implies self-regarding behavior and the assumption that contracts are costlessly enforced by third parties. (shrink)

The answer in a nutshell is: Yes, five years ago, but nobody has noticed. Nobody noticed because the majority of social scientists subscribe to one of the following views: (1) the ‘anomalous’ behaviour observed in standard prisoner’s dilemma or ultimatum game experiments has refuted standard game theory a long time ago; (2) game theory is flexible enough to accommodate any observed choices by ‘refining’ players’ preferences; or (3) it is just a piece of pure mathematics (...) (a tautology). None of these views is correct. This paper defends the view that GT as commonly understood is not a tautology, that it suffers from important (albeit very recently discovered) empirical anomalies, and that it is not flexible enough to accommodate all the anomalies in its theoretical framework. It also discusses the experiments that finally refuted game theory, and concludes trying to explain why it took so long for experimental game theorists to design experiments that could adequately test the theory. (shrink)

For more than twenty years, Peter Vanderschraaf’s work has combined rigorous game-theoretic analysis, innovative use of (social) scientific method, and normative analysis in the context of the social contract. Vanderschraaf’s work has influenced a significant interdisciplinary field of study and culminated in the publication of his book, Strategic Justice: Convention and Problems of Balancing Divergent Interests (OUP, 2019). Building upon his previous work, Vanderschraaf developed a new theory of justice (justice-as-convention) that, despite a mutual advantage approach, considers the (...) most vulnerable members of society and defends the egalitarian bargaining solution. To advance his theory, Vanderschraaf proposes an account of conventions that updates and systematizes David Lewis’s account of conventions, drawing on contemporary developments in game theory and economics. This topical collection brings together game theorists, philosophers, economists, and political scientists to discuss themes from Vanderschraaf’s work. The collection bridges a gap among disjoint but closely related literatures in game theory, bargaining theory, formal philosophy, rationality, equality, justice, and the social contract in order to advance dialogue among scholars in this rich and growing field of study. (shrink)

Games are played everywhere: from economics and online auctions to social interactions, and game theory is about how to play such games in a rational way, and how to maximize their outcomes. This VSI reveals, without mathematical equations, the insights the theory can bring to everything from how to play poker optimally to the sex ratio among bees.

Is game theory good for us? This may seem an odd question. In the strict sense, game theory—the axiomatic account of interaction between rational agents—is as morally neutral as arithmetic. But the popularization of game theory as a way of thinking about social interaction is far from neutral. Consider the contrast between characterizing bargaining over distribution as a “zero-sum society” and focussing on “win-win” cooperative solutions. These reflections bring us to the book under review, (...) Prisoner's Dilemma, a popular introduction to game theory and its relation to ethics by the respected science writer William Poundstone. The book begins with a moral dilemma and ends by discussing the evolution of co-operation. Poundstone emphasizes—correctly, to my mind—the ethical potential of game theory. He concludes his first chapter with this striking claim: “Today's practitioners of game theory are attempting to forge a kind of ethical progress. Is there any way to promote the common good in a prisoner's dilemma? The attempt to answer this question is one of the great intellectual adventures of our time”. (shrink)