Are the recent findings of Behavioural Game Theory (BGT) on unselfish behaviours relevant for the progress of game theory? Is the methodology of BGT, centred around the attempt to study theoretically players’ utility functions in the light of the feedback that experimental evidence can produce on the theory, a satisfactory one? Or is the creation of various types of ‘social preferences’ just wasteful tinkering? This article compares BGT with the methodology of Rational Game Theory (RGT). BGT is viewed as a (...) more promising and constructive approach, with regard to the relationship between experimental data and theoretical modelling. However, I also argue that today RGT and BGT are closer to one another than often thought. (shrink)

Résumé L’article évoque les bases de la méthode expérimentale en général et son adaptation à l’étude des phénomènes économiques tout en rendant compte des réflexions philosophiques récentes sur la nature des expériences en laboratoire. Il recense par ailleurs les principales procédures expérimentales qui caractérisent la bonne pratique des économistes – dont certaines témoignent d’une grande ingéniosité – en pointant en parallèle ce qui la sépare de celle plus ancienne des psychologues. La question des incitations financières y fait l’objet d’une attention (...) toute particulière. L’article souligne les immenses progrès réalisés en quelques décennies comme le caractère très professionnel de la démarche expérimentale, sans pour autant occulter les désaccords qui persistent entre certains expérimentalistes et l’existence de quelques questions « ouvertes » d’importance. A cet égard, l’article tente de faire le point sur l’un des questionnements méthodologiques qui, bien que central dans un argumentaire de défense contre la critique courante du caractère « artificiel » des expériences, n’est vraiment abordé de manière sérieuse que depuis peu : le problème de la « validité externe » des résultats expérimentaux, i.e. leur capacité à être généralisés en dehors du laboratoire. (shrink)

In this paper I examine Don Ross’s application of unificationism as a methodological criterion of theory appraisal in economics and cognitive science. Against Ross’s critique that explanations of the preference reversal phenomenon by the ‘heuristics and biases’ programme is ad hoc or ‘Ptolemaic’, I argue that the compatibility hypothesis, one of the explanations offerd by this programme, is theoretically and empirically well-motivated. A careful examination of this hypothesis suggests several strengths of a procedural approach to modelling cognitive processes underlying individual (...) decision making, compared to a multiple-agent approach which Ross promotes. I argue that the debate between economists and psychologists are both theoretical and empirical, but cannot be resolved by appealing to the ideal of unification. (shrink)

Page 1. Economics and Philosophy, 26 291--320 Copyright C Cambridge University Press doi: 10.1017 / S0266267110000386 TWO KINDS OF WE-REASONING RAUL HAKLI, KAARLO MILLER AND RAIMO TUOMELA University of Helsinki.

opinionated survey paper to be published in the Blackwell’s Philosophy Compass.

David Lewis famously proposed to model conventions as solutions to coordination games, where equilibrium selection is driven by precedence, or the history of play. A characteristic feature of Lewis Conventions is that they are intrinsically non-normative. Some philosophers have argued that for this reason they miss a crucial aspect of our folk notion of convention. It is doubtful however that Lewis was merely analysing a folk concept. I illustrate how his theory can (and must) be assessed using empirical data, and (...) argue that it does indeed miss an important aspect of real-world conventions. (shrink)

The Ultimatum Game is one of the most successful experimental designs in the history of the social sciences. In this article I try to explain this success—what makes it a “paradigmatic experiment”—stressing in particular its versatility. Despite the intentions of its inventors, the Ultimatum Game was never a good design to test economic theory, and it is now mostly used as a heuristic tool for the observation of nonstandard preferences or as a “social thermometer” for the observation of culture‐specific norms. (...) †To contact the author, please write to: Department of Sociology and Philosophy, University of Exeter, Amory Building, Exeter EX4 4DT, UK; e‐mail: [email protected]. (shrink)

Collective dilemmas have attracted widespread interest in several social sciences and the humanities including economics, sociology and philosophy. Since Hardin’s intuitive example of the Tragedy of the Commons, many real-world public goods dilemmas have been analysed with a wide ranging set of possible and actual solutions. The plethora of solutions to these dilemmas suggests that people make different kinds of decision in different situations. Rather than trying to find a unifying kind of reasoning to capture all situations, as the paradigm (...) of rationality has done, this article develops a framework of agent decision-making for social simulation, that takes seriously both different kinds of decision making as well as different interpretations of situations. The Contextual Action Framework for Computational Agents allows for the modelling of complex social phenomena, like dilemma situations, with relatively simple agents by shifting complexity from an agent’s cognition to an agent’s context. (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)

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)

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)

David Lewis famously proposed to model conventions as solutions to coordination games, where equilibrium selection is driven by precedence, or the history of play. A characteristic feature of Lewis Conventions is that they are intrinsically nonnormative. Some philosophers have argued that for this reason they miss a crucial aspect of our folk notion of convention. It is doubtful however that Lewis was merely analysing a folk concept. I illustrate how his theory can (and must) be assessed using empirical data, and (...) argue that it does indeed miss some important aspects of real-world conventions. I conclude that whether Lewis Conventions exist or not depends on how closely they approximate real-world behaviour, and whether we have any alternative theory that does a better job at explaining the phenomena. (shrink)