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)

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)

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.

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)

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

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)

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.

We develop an analysis of discourse anaphora—the relationship between a pronoun and an antecedent earlier in the discourse —using games of partial information. The analysis is extended to include information from a variety of different sources, including lexical semantics, contrastive stress, grammatical relations, and decision theoretic aspects of the context.

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)

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)

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)

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.

I discuss how simulating another agent can be useful in some game-theoretical situations, particularly iterated games such as the centipede game.

Peter Vanderschraaf. Game Theory, Evolution and Justice.

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)

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

Solomon’s article and Binmore’s response exemplify a standard exchange between the game theorist and those critical of applying game theory to ethics. The critic of game theory lists a number of problems with game theory and the game theorist responds by arguing that the critic’s objections are based on a misrepresentation of the theory. Binmore claims that the game theorist is in the position of the innocent man who, when asked (...) why he beats his wife, must explain that he doesn’t beat his wife at all (Binmore, 2). However, even if we agree that the denial is true, we might still like to know why, if you are not beating your wife, do others consistently accuse you of doing so? Or, to get away from this rather sexist metaphor, why are critics of game theory like Solomon (according to game theorists) consistently getting game theory wrong?While, as I argue in the first section, critics of game theory such as Solomon may misrepresent game theory, this misrepresentation is not entirely their own fault. The way in which game theory is traditionally presented is misleading. For example, students are usually first introduced to game theory through the prisoner’s dilemma. It is compelling drama, but lousy PR for the use of ethics in game theory. (You want to know what to do? Let’s see how two thieves reason.) However, while Binmore is right to argue that game theory neither assumes nor entails the theory of human nature that Solomon finds objectionable, Solomon is also right to argue that game theory is promulgated and applied with what appear to be a robust set of assumptions about human motivation. I argue in the second section, however, that in fact neither these applications of game theory, nor game theory itself, is committed to a particular theory of human motivation. Thus, while game theory is not able to provide a complete ethical theory (assuming that a theory of human motivation is essential to such a theory), it is not contrary to ethics. In the final section I note that Aristotle, rather than being the alternative to using game theory in business ethics, as Solomon suggests, actually points the way to an ethical theory that can combine a discussion of both game theory and “those nagging and controversial questions about what it is that people do and ought to care about” (Solomon, 7). (shrink)

When social scientists began employing evolutionary game theory (EGT) in their disciplines, the question arose what the appropriate interpretation of the formal EGT framework would be. Social scientists have given different answer, of which I distinguish three basic kinds. I then proceed to uncover the conceptual tension between the formal framework of EGT, its application in the social sciences, and these three interpretations. First, I argue that EGT under the biological interpretation has a limited application in the social (...) sciences, chiefly because strategy replication often cannot be sensibly interpreted as strategy bearer reproduction in this domain. Second, I show that alternative replication mechanisms imply interpersonal comparability of strategy payoffs. Giving a meaningful interpretation to such comparisons is not an easy task for many social situations, and thus limits the applicability of EGT in this domain. Third, I argue that giving a new interpretation both to strategy replication and selection solves the issue of interpersonal comparability, but at the costs of making the new interpretation incompatible with natural selection interpretations of EGT. To the extent that social scientists seek such a natural selection interpretation, they face a dilemma: either face the challenge that interpersonal comparisons pose, or give up on the natural selection interpretation. By identifying these tensions, my analysis pleas for greater awareness of the specific purposes of EGT modelling in the social sciences, and for greater sensitivity to the underlying microstructure on which the evolutionary dynamics and other EGT solution concepts supervene. (shrink)

I resolve a previously unnoticed anomaly in the analysis of collective action problems. Some political theorists apply game theory to analyze the paradox of anarchy: War is apparently inevitable in anarchy even though all warring parties prefer peace over war. Others apply tipping threshold analysis to resolve the paradox of revolution: Joining a revolution is apparently always irrational even when an overwhelming majority of the population wish to replace their regime. The usual game theoretic analysis of anarchy (...) yields the conclusion that the suboptimal equilibrium of war is inevitable. The usual tipping threshold analysis of revolution yields the conclusion that the optimal equilibrium of successful revolution is possible. Yet structurally the collective action problems of anarchy and potential revolution are much the same. This suggests that tipping threshold analysis and game theory are incompatible methodologies, despite their widespread use in the social sciences. I argue that there is no real tension between game theory and tipping threshold analysis, even though these methodologies have developed largely independently of each other. I propose a Variable Belief Threshold model of collective action that combines elements of game theory and tipping threshold analysis. I show by example that one can use this kind of hybrid model to give compatible explanations of conflict in anarchy and successful revolution.1. Introduction2. Two Classic Problems, and Two Popular Analyses2.1. The paradox of anarchy2.2. The paradox of revolution3. Restating the Puzzle4. Evaluating the Prisoners’ Dilemma and S-Curve Models5. The Variable Belief Threshold ModelExample 5.1. A population of moderates with independent deviationsExample 5.2 A heterogeneous population with independent deviationsExample 5.3 A heterogeneous population with coordinated deviations6. ConclusionAppendix: Computer Simulations. (shrink)

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.

This informal position paper brings together some recent developments in formal semantics and pragmatics to argue that the discipline of Game Theory is well placed to become the theoretical backbone of Natural Language Generation. To demonstrate some of the strengths and weaknesses of the Game-Theoretical approach, we focus on the utility of vague expressions. More specifically, we ask what light Game Theory can shed on the question when an NLG system should generate vague language.

This paper does not deal with the applications of game theory for which this theory was first developed, that is, for modelling economic systems and rational decision making. But I do not want to consider games as abstract mathematical structures, either. I want to concentrate on what it is that makes a game actually playable. This playability means both the possibility of finding and formulating the strategy that a player uses and the feasibility of actually applying (...) the strategy in question in making one’s moves. (shrink)

Since Neumann and Morgenstern’s theory of games, the debate among social scientists, economists, mathematicians, and social philosophers about what kind of theory it is has not ended. Some think that it is a new interdiscipline, some that it is a mere accumulation of gametheoretical models, such as utility theory, competitive, cooperative, collective choice models, and so on. Most of them agree that the models of game theory deal with isolated, single, and independent specific societal interactions (...) between individuals who wish to maximize their gains and minimize their losses within prescribed constraining rules. (shrink)

This informal position paper brings together some recent developments in formal semantics and pragmatics to argue that the discipline of Game Theory is well placed to become the theoretical backbone of Natural Language Generation. To demonstrate some of the strengths and weaknesses of the Game-Theoretical approach, we focus on the utility of vague expressions. More specifically, we ask what light Game Theory can shed on the question when an NLG system should generate vague language.

Fundamental aspects of human use of the environment can be explained by game theory. Game theory explains aggregate behaviour of the human species driven by perceived costs and benefits. In the ‘game’ of global environmental protection and conservation, the stakes are the living conditions of all species including the human race, and the playing field is our planet. The question is can we control humanity's hitherto endless appetite for resources before we irreparably harm the global (...) ecosystem and cause extinction of even more species? The central problem is that some proportion of the individuals or groups will behave selfishly. The inducement for using more than a fair share, or ‘cheating’, increases as that resource becomes rarer, thus the benefits of cheating increase. In addition, the total number of people is increasing, so the proportion of cheaters must decrease to even keep total resource use constant. Cost benefit analysis of the effect of regulation and incentives on potential cheaters may provide a rational approach to controlling environmental problems. While it is debatable that environmental values are constant across cultures, communal use of resources seems to follow global rules. Cooperative use and punishment of those who use more than their share appear to be ubiquitous in human societies. Schemes for controlling human impact on the global environment must take into consideration basic behaviours including development of social norms and the positive feedback created because resources become more valuable with increasing rarity leading to more incentive for consumption. (shrink)

This is a brief historical note on game theory. We cover its historical roots (prior to its formal definition in 1944), and look at its development until the late 1960's.

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)

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)

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

This paper argues, based on Lewis’ claim that communication is a coordination game (Lewis in Minnesota studies in the philosophy of science, University of Minnesota Press, Minneapolis, pp 3–35, 1975), that we can account for the communicative function of demonstratives without assuming that they semantically refer. The appeal of such a game theoretical version of the case for non-referentialism is that the communicative role of demonstratives can be accounted for without entering the cul de sac of trying to (...) construct conventions of ever-increasing complexity. Instead communication via demonstratives is explained with reference to the general, non-domain specific ability of human beings to solve games of coordination. Furthermore, there is empirical support for such a view. Judgments concerning demonstrative reference have been shown to be sensitive to judgments concerning common ground (Clark et al. in J Verb Learn Verb Behav 22:245–258, 1983), which is exactly what the non-referentialist account would predict. The game theoretical account also allows for an intuitively plausible, non-referentialist treatment of Speaks’ ‘trumping argument’ (Speaks in Philos Stud 174:709–734, 2017), as well as the Carnap/Agnew puzzle (Kaplan in Syntax Semant 9:221–43, 1970). (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)

The sense of agency – the subjective feeling of being in control of our own actions – is one central aspect of the phenomenology of action. Computational models provided important contributions toward unveiling the mechanisms underlying the sense of agency in individual action. In particular, the sense of agency is believed to be related to the match between the actual and predicted consequences of our own actions (comparator model). In the study of joint action, models are even more necessary to (...) understand the mechanisms underlying the development of coordination strategies and how the subjective experiences of control emerge during the interaction. In a joint action, we not only need to predict the consequences of our own actions; we also need to predict the actions and intentions of our partner, and to integrate these predictions to infer their joint consequences. Understanding our partner and developing mutually satisfactory coordination strategies are key components of joint action and in the development of the sense of joint agency. Here we discuss a computational architecture which addresses the sense of agency during intentional, real-time joint action. We first reformulate previous accounts of the sense of agency in probabilistic terms, as the combination of prior beliefs about the action goals and constraints, and the likelihood of the predicted movement outcomes. To look at the sense of joint agency, we extend classical computational motor control concepts - optimal estimation and optimal control. Regarding estimation, we argue that in joint action the players not only need to predict the consequences of their own actions, but also need to predict partner’s actions and intentions (a ‘partner model’) and to integrate these predictions to infer their joint consequences. As regards action selection, we use differential game theory – in which actions develop in continuous space and time - to formulate the problem of establishing a stable form of coordination and as a natural extension of optimal control to joint action. The resulting model posits two concurrent observer-controller loops, accounting for ‘joint’ and ‘self’ action control. The two observers quantify the likelihoods of being in control alone or jointly. Combined with prior beliefs, they provide weighing signals which are used to modulate the ‘joint’ and ‘self’ motor commands. We argue that these signals can be interpreted as the subjective sense of joint and self agency. We demonstrate the model predictions by simulating a sensorimotor interactive task where two players are mechanically coupled and are instructed to perform planar movements to reach a shared final target by crossing two differently located intermediate targets. In particular, we explore the relation between self and joint agency and the information available to each player about their partner. The proposed model provides a coherent picture of the inter-relation of prediction, control, and the sense of agency in a broader range of joint actions. (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 studies the choices of two or more agents strategically interacting under various conditions. This paper examines two applications of omniscience in game theory. The first has to do with the paradox of altruism. The paradox of altruism results when players, by seeking to maximize the outcomes of other players, bring about inferior outcomes for all the players. Not surprisingly, an omniscient player could not find herself ensnarled in an altruistic paradox. The second application is (...) what Steven Brams has called the “paradox of omniscience”. The paradox of omniscience is the surprising proposition that omniscience disadvantages a player in certain games if her opponent knows that she is omniscient. Contrary to Brams, I argue that there is no resolution of the paradox of omniscience with regard to normal games. Indeed, I show that omniscience is not the only divine property that is a strategic liability in normal games. Omniscience then has a mixed standing in game theory—in some cases a strategic asset; in others, a strategic liability. (shrink)

Two views of game theory are discussed: (1) game theory as a description of the behavior of rational individuals who recognize each other’s rationality and reasoning abilities, and (2) game theory as an internally consistent recommendation to individuals on how to act in interactive situations. It is shown that the same mathematical tool, namely modal logic, can be used to explicitly model both views.

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)

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)

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.

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)

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)