Human beings are highly irrational, at least if we hold to an economic standard of ‘rationality’. Experimental economics studies the irrational behavior of human beings, with the aim of understanding exactly how our behavior deviates from the Homo economicus, as ‘rational man’ has been called. Insofar as philosophical theories depend upon rationality assumptions, experimental economics is the source of both problems and (at least potential) solutions to several philosophical issues. This article offers a programmatic and highly biased survey of some (...) of these issues, with the hope of convincing the reader that experimental economics is well-deserving of careful study by philosophers. (shrink)

The mathematical tools of game theory are frequently used in the social sciences and economic consultancy. But how do they explain social phenomena and support prescriptive judgments? And is the use of game theory really necessary? I analyze the logical form of explanatory and prescriptive game theoretical statements, and argue for two claims: (1) explanatory game theory can and should be reduced to rational choice theory in all cases; and (2) prescriptive game theory gives bad advice in some cases, is (...) reducible to rational choice theory in other cases, while it makes no sense in yet other cases. (shrink)

The paper argues that the Nash Equilibrium Refinement Programme was less successful than its competitor, the Epistemic Programme. The prime criterion of success is the extent to which the programmes were able to reach the key objective guiding non-cooperative game theory for much of the twentieth century, namely, to develop a complete characterisation of the strategic rationality of economic agents in the form of the ultimate solution concept for any normal form and extensive game. The paper explains this in terms (...) of unjustified degrees of mathematisation in Nash Equilibrium Refinement Programme. While this programme’s mathematical models were often inspired by purely mathematical concerns rather than the economic phenomena they were intended to model, the Epistemic Programme’s models were developed with a keen eye to the role beliefs and desires play in strategic interaction between rational economic agents playing games; that is, their interactive epistemology. The Epistemic Programme succeeded in developing mathematical models formalising aspects of strategic interaction that remained implicit in the Nash Equilibrium Refinement Programme owing to an unjustified degree of mathematisation. As a result, the Epistemic Programme is the more successful theory.Keywords: Epistemic Programme; Game theory; Interactive epistemology; Mathematisation; Nash equilibrium. (shrink)

We identify a novel ‘cultural red king effect’ that, in many cases, results in stable arrangements which are to the detriment of minority groups. In particular, we show inequalities disadvantaging minority groups can naturally arise under an adaptive process when minority and majority members must routinely determine how to divide resources amongst themselves. We contend that these results show how inequalities disadvantaging minorities can likely arise by dint of their relative size and need not be a result of either explicit (...) nor implicit prejudices, nor due to intrinsic differences between minority and majority members. (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)

Peter Vanderschraaf’s Strategic Justice provides a defense of the egalitarian bargaining solution. Vanderschraaf’s discussion of the egalitarian solution invokes three arguments typically given to support the Nash bargaining solution. Overall, we reinforce Vanderschraaf’s criticism of arguments in favor of the Nash solution and point to potential weaknesses in Vanderschraaf’s positive case for the egalitarian solution.

Contents. Introduction. 1. Preliminaries. 2. Normal Form Games. 3. Extensive Games. 4. Applications of Game Theory. 5. The Methodology of Game Theory. Conclusion. Appendix. Bibliography. Index. Does game theory—the mathematical theory of strategic interaction—provide genuine explanations of human behaviour? Can game theory be used in economic consultancy or other normative contexts? Explaining Games: The Epistemic Programme in Game Theory—the first monograph on the philosophy of game theory—is an attempt to combine insights from epistemic logic and the philosophy of science to (...) investigate the applicability of game theory in such fields as economics, philosophy and strategic consultancy. I prove new mathematical theorems about the beliefs, desires and rationality principles of individual human beings, and explore in detail the logical form of game theory as it is used in explanatory and normative contexts. I argue that game theory reduces to rational choice theory if used as an explanatory device, and that game theory is nonsensical if used as a normative device. A provocative account of the history of game theory reveals that this is not bad news for all of game theory, though. Two central research programmes in game theory tried to find the ultimate characterisation of strategic interaction between rational agents. Yet, while the Nash Equilibrium Refinement Programme has done badly thanks to such research habits as overmathematisation, model-tinkering and introversion, the Epistemic Programme, I argue, has been rather successful in achieving this aim. "The 'epistemic' approach to game theory has emerged over the past twenty-five years. What is this approach? How does it differ from the conventional equilibrium-based approach to game theory? What have been its strengths and weaknesses to date? To find out, read this comprehensive and excellently written account". Adam Brandenburger, J. P. Valles Professor of Business Economics and Strategy, Stern School of Business, New York University "Reading Boudewijn de Bruin's book should be rewarding both for game theorists interested in the conceptual foundations of their discipline and for philosophers who want to learn more about formal analysis of strategic interaction. It provides an in-depth logical study of the currently dominant epistemic approaches to non-cooperative games, with an eye both to the attractions and to the serious challenges facing the Epistemic Programme". Wlodek Rabinowicz, Professor of Practical Philosophy, Department of Philosophy, Lund University . (shrink)

Preface to a special section on "Cooperation in nature, science, and society".

This paper discusses critically what simulation models of the evolution ofcooperation can possibly prove by examining Axelrod’s “Evolution of Cooperation” and the modeling tradition it has inspired. Hardly any of the many simulation models of the evolution of cooperation in this tradition have been applicable empirically. Axelrod’s role model suggested a research design that seemingly allowed to draw general conclusions from simulation models even if the mechanisms that drive the simulation could not be identified empirically. But this research design was (...) fundamentally flawed, because it is not possible to draw general empirical conclusions from theoretical simulations. At best such simulations can claim to prove logical possibilities, i.e. they prove that certain phenomena are possible as the consequence of the modeling assumptions built into the simulation, but not that they are possible or can be expected to occur in reality I suggest several requirements under which proofs of logical possibilities can nevertheless be considered useful. Sadly, most Axelrod-style simulations do not meet these requirements. I contrast this with Schelling’s neighborhood segregation model, thecore mechanism of which can be retraced empirically. (shrink)

This paper discusses critically what simulation models of the evolution of cooperation can possibly prove by examining Axelrod’s “Evolution of Cooperation” (1984) and the modeling tradition it has inspired. Hardly any of the many simulation models in this tradition have been applicable empirically. Axelrod’s role model suggested a research design that seemingly allowed to draw general conclusions from simulation models even if the mechanisms that drive the simulation could not be identified empirically. But this research design was fundamentally flawed. At (...) best such simulations can claim to prove logical possibilities, i.e. they prove that certain phenomena are possible as the consequence of the modeling assumptions built into the simulation, but not that they are possible or can be expected to occur in reality. I suggest several requirements under which proofs of logical possibilities can nevertheless be considered useful. Sadly, most Axelrod-style simulations do not meet these requirements. It would be better not to use this kind of simulations at all. (shrink)