Game Theory, Misc

I argue in this paper that there are two considerations which govern the dynamics of a two-person bargaining game, viz. relative proportionate utility loss from conceding to one's opponent's proposal and relative non-proportionate utility loss from not conceding to one's opponent's proposal, if she were not to concede as well. The first consideration can adequately be captured by the information contained in vNM utilities. The second requires measures of utility which allow for an interpersonal comparison of utility differences. These considerations (...) respectively provide for a justification of the Nash solution and the Kalai egalitarian solution. However, none of these solutions taken by themselves can provide for a full story of bargaining, since, if within a context of bargaining one such consideration is overriding, the solution which does not match this consideration will yield unreasonable results. I systematically present arguments to the effect that each justification from self-interest for respectively the Nash and the Kalai egalitarian solution is vulnerable to this kind of objection. I suggest that the search for an integrative model may be a promising line of research. (shrink)

An introduction to the special issue on epistemic logic and the foundations of game theory edited by Michael Bacharach and Philippe Mongin. Contributors are Michael Bacharach, Robert Stalnaker, Salvatore Modica and Aldo Rustichini, Luc Lismont and Philippe Mongin, and Hyun-Song Shin and Timothy Williamson.

In this article I interpret resilience and evolution in view of the philosophy of Leibniz. First, I discuss resilience as a substance’s or a monad’s “quantity of essence” — its “degree of perfection” — which I express as the quality of the Whole with respect to the sum of the qualities of the Parts. Then I discuss evolution, which I interpret here as the autopoietic Principle that sets Itself in motion and creates all reality, including Itself. This Principle may be (...) considered as a sort of ante-litteram metaphysical Darwinian Selection. My interpretations provide a different formulation for questions such as “why natural evolution evolves?” and “why is this the best of all possible worlds?” In this article I also provide a geometrical interpretation of a key aspect behind the “divine mathematics” of the autopoietic Principle. (shrink)

Recent work on the resource curse argues that the effect of resource wealth on development outcomes is a conditional one: resource dependent countries with low quality institutions are vulnerable to a resource curse, while resource dependent countries with high quality institutions are not. But extant models neglect the ways in which the inflow of resource revenue impacts the institutional environment itself. In this paper, I present a formal model to show that where domestic institutions do not limit state leaders' discretion (...) over policy prior to becoming fiscally reliant on resources, those leaders have little incentive in the wake of resource windfalls to establish institutional mechanisms that limit their discretion. Importantly, this shows that simple calls for domestic institutional reform are unlikely to be effective. Among other things, future prescriptions to mitigate the resource curse must focus on decreasing rulers' fiscal reliance on resources. (shrink)

We trace the difference between the ways in which apes and humans co–operate to differences in communicative abilities, claiming that the pressure for future–directed co–operation was a major force behind the evolution of language. Competitive co–operation concerns goals that are present in the environment and have stable values. It relies on either signalling or joint attention. Future–directed co–operation concerns new goals that lack fixed values. It requires symbolic communication and context–independent representations of means and goals. We analyse these ways of (...) co–operating in game–theoretic terms and submit that the co–operative strategy of games that involve shared representations of future goals may provide new equilibrium solutions. (shrink)

We evaluate the asymptotic performance of boundedly-rational strategies in multi-armed bandit problems, where performance is measured in terms of the tendency (in the limit) to play optimal actions in either (i) isolation or (ii) networks of other learners. We show that, for many strategies commonly employed in economics, psychology, and machine learning, performance in isolation and performance in networks are essentially unrelated. Our results suggest that the appropriateness of various, common boundedly-rational strategies depends crucially upon the social context (if any) (...) in which such strategies are to be employed. (shrink)

A survey of some game-theoretic accounts of the emergence and evolution of spontaneuous cooperation in social and public-good dilemmas.

The paper focuses on Anthony de Jasay's "anarcho-liberalism" as based oon his game-theoretic approach to the problem of public goods provision.

This is the introductory essay to the Italian translation of Anthony de Jasay's "Choice, contract, and consent. A restatement of liberalism".

Pascal’s Wager holds that one has pragmatic reason to believe in God, since that course of action has infinite expected utility. The mixed strategy objection holds that one could just as well follow a course of action that has infinite expected utility but is unlikely to end with one believing in God. Monton (2011. Mixed strategies can’t evade Pascal’s Wager. Analysis 71: 642–45.) has argued that mixed strategies can’t evade Pascal’s Wager, while Robertson (2012. Some mixed strategies can evade Pascal’s (...) Wager: a reply to Monton. Analysis 72: 295–98.) has argued that Monton is mistaken. We show that Monton is correct, highlight the crucial assumptions that he relies on, and shed some light on the role of mixed strategies in decision theory. (shrink)

Decision theory is concerned with how agents should act when the consequences of their actions are uncertain. The central principle of contemporary decision theory is that the rational choice is the choice that maximizes subjective expected utility. This entry explains what this means, and discusses the philosophical motivations and consequences of the theory. The entry will consider some of the main problems and paradoxes that decision theory faces, and some of responses that can be given. Finally the entry will briefly (...) consider how decision theory applies to choices involving more than one agent. (shrink)