We argue that a Bayesian explanation of strategic choices in games requires introducing a psychological theory of belief formation. We highlight that beliefs in epistemic game theory are derived from the actual choice of the players, and cannot therefore explain why Bayesian rational players should play the strategy they actually chose. We introduce the players’ capacity of mindreading in a game theoretical framework with the simulation theory, and characterise the beliefs that Bayes rational players could endogenously form in games. We (...) show in particular that those beliefs need not be ratifiable, and therefore that rational players can form action-dependent beliefs. (shrink)

Standard game theory cannot explain the selection of payoff-dominant outcomes that are best for all players in common-interest games. Theories of team reasoning can explain why such mutualistic cooperation is rational. They propose that teams can be agents and that individuals in teams can adopt a distinctive mode of reasoning that enables them to do their part in achieving Pareto-dominant outcomes. We show that it can be rational to play payoff-dominant outcomes, given that an agent group identifies. We compare team (...) reasoning to other theories that have been proposed to explain how people can achieve payoff-dominant outcomes, especially with respect to rationality. Some authors have hoped that it would be possible to develop an argument that it is rational to group identify. We identify some large—probably insuperable—problems with this project and sketch some more promising approaches, whereby the normativity of group identification rests on morality. (shrink)

The paper’s target is the historically influential betting interpretation of subjective probabilities due to Ramsey and de Finetti. While there are several classical and well-known objections to this interpretation, the paper focuses on just one fundamental problem: There is a sense in which degrees of belief cannot be interpreted as betting rates. The reasons differ in different cases, but there’s one crucial feature that all these cases have in common: The agent’s degree of belief in a proposition A does not (...) coincide with her degree of belief in a conditional that A would be the case if she were to bet on A, where the belief in this conditional itself is conditioned on the supposition that the agent will have an opportunity to make such a bet. Even though the two degrees of belief sometimes can coincide (they will coincide in those cases when the bet has no expected causal bearings on the proposition A and the opportunity to bet have no evidential bearings on that proposition), it is the latter belief rather than the former that guides the agent’s rational betting behaviour. The reason is that this latter belief takes into consideration potential interferences that bet opportunities and betting itself might create with regard to the proposition to be betted on. It is because of this interference problem that the agent’s degree of belief in A cannot be interpreted as her betting rate for A. (shrink)