Previous edition, 1st, published in 1971.

This is the classic work upon which modern-day game theory is based. What began as a modest proposal that a mathematician and an economist write a short paper together blossomed, when Princeton University Press published Theory of Games and Economic Behavior. In it, John von Neumann and Oskar Morgenstern conceived a groundbreaking mathematical theory of economic and social organization, based on a theory of games of strategy. Not only would this revolutionize economics, but the entirely new field of scientific inquiry (...) it yielded--game theory--has since been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations. And it is today established throughout both the social sciences and a wide range of other sciences. (shrink)

This book is in three sections, with two chapters in each. It begins with questions of psychology: questions to do with what it means to be an intentional agent and, in particular, what it means to be an agent with the capacity for thought. Having sketched an overall view of the intentional, thinking agent, it then goes on to explore the difference that social life makes to the mentality of such agents; in effect, it outlines a social ontology. And, having (...) developed a picture of the mind in society – of the common or social mind – it turns, finally, to the lessons of this picture for the pursuit of social and political theory: for the explanation of what happens on the social scene and for the evaluation of the different ways in which that scene may be structured. (shrink)

It is argued that the Nash bargaining solution cannot serve as a principle of distributive justice because (i) it cannot secure stable cooperation in repeated interactions and (ii) it cannot capture our moral intuitions concerning distributive questions. In this article, I propose a solution to the first problem by amending the Nash bargaining solution so that it can maintain stable cooperation among rational bargainers. I call the resulting principle the stabilized Nash bargaining solution. The principle defends justice in the form (...) 'each according to her basic needs and above this level according to her relative bargaining power'. In response to the second problem, I argue that the stabilized Nash bargaining solution can serve as a principle of distributive justice in certain situations where moral reasoning is reduced to instrumental reasoning. In particular, I argue that rational individuals would choose the stabilized Nash bargaining solution in Rawls' original position. (shrink)

This article shows that social norms are better explained as correlating devices for a correlated equilibrium of the underlying stage game, rather than Nash equilibria. Whereas the epistemological requirements for rational agents playing Nash equilibria are very stringent and usually implausible, the requirements for a correlated equilibrium amount to the existence of common priors, which we interpret as induced by the cultural system of the society in question. When the correlating device has perfect information, we need in addition only to (...) posit that individuals obey the social norm when it is costless to do so. When the correlating device has incomplete information, the operation of the social norm requires that individuals have a predisposition to follow the norm even when this is costly. The latter case explains why social norms are associated with other-regarding preferences and provides a basis for analyzing honesty and corruption. (shrink)

Is morality rational? In this book Gauthier argues that moral principles are principles of rational choice. He proposes a principle whereby choice is made on an agreed basis of cooperation, rather than according to what would give an individual the greatest expectation of value. He shows that such a principle not only ensures mutual benefit and fairness, thus satisfying the standards of morality, but also that each person may actually expect greater utility by adhering to morality, even though the choice (...) did not have that end primarily in view. In resolving what may appear to be a paradox, the author establishes morals on the firm foundation of reason. Gauthier's argument includes an account of value, linking it to preference and utility; a discussion of the curcumstances in which morality is unnecessary; and an application of morals by agreement to relations between peoples at different levels of development and different generations. Finally, he reflects on the assumptions about individuality and community made by his account of rationality and morality. (shrink)

In The Grammar of Society, first published in 2006, Cristina Bicchieri examines social norms, such as fairness, cooperation, and reciprocity, in an effort to understand their nature and dynamics, the expectations that they generate, and how they evolve and change. Drawing on several intellectual traditions and methods, including those of social psychology, experimental economics and evolutionary game theory, Bicchieri provides an integrated account of how social norms emerge, why and when we follow them, and the situations where we are most (...) likely to focus on relevant norms. Examining the existence and survival of inefficient norms, she demonstrates how norms evolve in ways that depend upon the psychological dispositions of the individual and how such dispositions may impair social efficiency. By contrast, she also shows how certain psychological propensities may naturally lead individuals to evolve fairness norms that closely resemble those we follow in most modern societies. (shrink)

Here a group of philosophers, economists and political theorists discuss the work of David Gauthier, which seeks to show that rational individuals would accept certain moral constraints on their choices. The possibilities and limitations of a contractarian approach to issues of justice is analyzed.

Natural Justice is a bold attempt to lay the foundations for a genuine science of morals using the theory of games. Since human morality is no less a product of evolution than any other human characteristic, the book takes the view that we need to explore its origins in the food-sharing social contracts of our prehuman ancestors. It is argued that the deep structure of our current fairness norms continues to reflect the logic of these primeval social contracts, but the (...) particular fairness norm a society operates is largely a product of cultural evolution. In pursuing this point, the book proposes a naturalistic reinterpretation of John Rawls' original position that reconciles his egalitarian theory of justice with John Harsanyi's utilitarian theory by identifying the environment appropriate to each. (shrink)

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

What makes human beings intentional and thinking subjects? How does their intentionality and thought connect with their social nature and their communal experience? How do the answers to these questions shape the assumptions which it is legitimate to make in social explanation and political evaluation? These are the broad-ranging issues which Pettit addresses in this novel study. The Common Mind argues for an original way of marking off thinking subjects, in particular human beings, from other intentional systems, natural and artificial. (...) It holds by the holistic view that human thought requires communal resources while denying that this social connection compromises the autonomy of individuals. And, in developing the significance of this view of social subjects--this holistic individualism--it outlines a novel framework for social and political theory. Within this framework, social theory is allowed to follow any of a number of paths: space is found for intentional interpretation and decision-theoretic reconstruction, for structural explanation and rational choice derivation. But political theory is treated less ecumenically. The framework raises serious questions about contractarian and atomistic modes of thought and it points the way to a republican rethinking of liberal commitments. (shrink)

Analyzes the nature of international disagreements and conflict resolution in terms of game theory and non-zero-sum games.