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)

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)

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)

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)

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.

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

This short paper begins with a summary of the views of a sympathetic game theorist on the current state of play in what is still called the New Institutional Economics. It continues with a much abbreviated summary of my own attempts to treat justice as a kind of institution in the hope that this will serve as a case study in how game theory can serve as a useful intellectual framework for the study of human institutions.

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.

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

Ideology critics believe that many bad social practices persist because of ideology, and that critiquing ideology is an effective way to promote social reform. Skeptics draw on game theory to argue that the persistence of such practices is better explained by collective action problems, and that ideology critique is causally inefficacious. In this paper, I reconcile these camps. I show that while game theory can help us identify contexts where ideology critique makes no difference, it also (...) reveals causal mechanisms by which ideology critique can have a significant effect. I then consider some objections and directions for further research. (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.

This paper provides an overview of developments in the application of game theory to moral philosophy. Game theory has been used in moral theory in three ways. First, as a tool to analyze the function of moral norms. Secondly, to characterize bargaining about moral norms. Thirdly, the paper demonstrates how game theory can make sense of the authority of moral norms in a way that renders the concept suitable for further analysis.

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)

Fifty years ago, two Princeton professors established game theory as an important new branch of applied mathematics. Game theory has become a celebrated discipline in its own right, and it npw plays a prestigues role in many disciplines, including ethics, due in particular to the neo-Hobbesian thinking of David Gauthier and others. Now it is perched at the edge of business ethics. I believe that it is dangerous and demeaning. It makes us look the wrong way (...) at business, reinforcing a destructive obsession with measurable outcomes and a false sense of competition. It falsely characterizes or insidiously advocates a style of human behavior that is utterly unacceptable. To put the matter quite crudely, a person who actually practiced the form of "rationality" advocated by game theory would be something of a monster. (shrink)

This is the first book to collect research on game-theoretic tools in the analysis of language with particular reference to semantics and pragmatics. Games are significant, because they pertain equally to pragmatics and semantics of natural language. The book provides an overview of the variety of ways in which game theory is used in the analysis of linguistic meaning and shows how games arise in pragmatic as well as semantic investigations.

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)

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)

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)

Although it may seem from its formalism that game theory must have sprung from the mind of John von Neumann as a corollary of his work on computers or theoretical physics, it should come as no real surprise to philosophers that game theory is the articulation of a historically developing philosophical conception of rationality in thought and action. The history of ideas about rationality is deeply contradictory at many turns. While there are theories of rationality that (...) claim it is fundamentally social and aims at understanding and molding all facets of human psychological life, game theory takes rationality to be essentially located in individuals and to concern only the means to achieve predetermined ends. Thus, there are some thinkers who have made important contributions to this history who do not appear in the story of game theory at all, among them, Plato, Kant, and Hegel. There is, however, a clear trail to follow linking theories of instrumental rationality from Aristotle to the nineteenth-century marginalist economists and ultimately to von Neumann and Morgenstern and contemporary game theorists, that historically grounds game theory as a model of rational interaction. (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)

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)

The notion of ‘revealed preference’ is unclear and should be abandoned. Defenders of the theory of revealed preference have misinterpreted legitimate concerns about the testability of economics as the demand that economists eschew reference to (unobservable) subjective states. As attempts to apply revealed-preference theory to game theory illustrate with particular vividness, this demand is mistaken.

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)

This book represents a major contribution to game theory. It offers this conception of equilibrium in games: strategic equilibrium. This conception arises from a study of expected utility decision principles, which must be revised to take account of the evidence a choice provides concerning its outcome. The argument for these principles distinguishes reasons for action from incentives, and draws on contemporary analyses of counterfactual conditionals. The book also includes a procedure for identifying strategic equilibria in ideal normal-form games. (...) In synthesizing decision theory and game theory in a powerful way this book will be of particular interest to all philosophers concerned with decision theory and game theory as well as economists and other social scientists. (shrink)

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)

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)

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)

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)

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)

Marcoux argues that job candidates ought to embellish non-verifiable information on their résumés because it is the best way to coordinate collective action in the résumé ‚game’. I do not dispute his analysis of collective action; I look at the larger picture, which throws light on the role game theory might play in ethics. I conclude that game theory’s conclusions have nothing directly to do with ethics. Game theory suggests the means to certain (...) ends, but the ethics of both the means and ends must be assessed separately before any ethical recommendation can␣be made. Marcoux makes several highly disputable assumptions in order to fit résumés into game theory; his analysis does not take into account the consequences that embellishing has beyond the submission and assessment of␣résumés; his argument depends on his claim that a résumé system in which everyone embellishes is attainable; and finally, his argument relies on an idealization of human␣motivation, rather than abstraction. I conclude that candidates should never embellish their résumés. (shrink)

Game theory has a prominent role in evolutionary biology, in particular in the ecological study of various phenomena ranging from conflict behaviour to altruism to signalling and beyond. The two central methodological tools in biological game theory are the concepts of Nash equilibrium and evolutionarily stable strategy. While both were inspired by a dynamic conception of evolution, these concepts are essentially static—they only show that a population is uninvadable, but not that a population is likely to (...) evolve. In this article, we argue that a static methodology can lead to misleading views about dynamic evolutionary processes. We advocate, instead, a more pluralistic methodology, which includes both static and dynamic game theoretic tools. Such an approach provides a more complete picture of the evolution of strategic behaviour. 1 Introduction2 The Equilibrium Methodology3 Common Interest Signalling3.1 Lewis’s signalling game3.2 Static analysis3.3 Dynamic analysis4 The Sir Philip Sidney Game4.1 Static analysis4.2 Other equilibria4.3 Dynamic analysis5 Related Literature6 Static and Dynamic Approaches. (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)

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

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)

Whereas many environmentalists have traditionally argued in favour of small‐scale, decentralised communities as a solution to the environmental crises which we appear to face, some environmental political theorists have recently argued against decentralisation. In this article I first show that game theory seems, at first glance, to support the insistence by statists that decentralisation is highly impracticable. But, second, I then attempt to demonstrate that, on closer inspection, game theory actually provides considerable support for the decentralist (...) case. (shrink)

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)

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.

Gintis assumes the behavioral (=social) sciences are in disarray, and so proposes a theory for their unification. Examination of the unity of the physical sciences reveals he misunderstands the unity of science in general, and so fails to see that the social sciences are already unified with the physical sciences. Another explanation of the differences between them is outlined. (Published Online April 27 2007).