Traditionally, epistemologists have distinguished between epistemic and pragmatic goals. In so doing, they presume that much of game theory is irrelevant to epistemic enterprises. I will show that this is a mistake. Even if we restrict attention to purely epistemic motivations, members of epistemic groups will face a multitude of strategic choices. I illustrate several contexts where individuals who are concerned solely with the discovery of truth will nonetheless face difficult game theoretic problems. Examples of purely epistemic coordination problems and (...) social dilemmas will be presented. These show that there is a far deeper connection between economics and epistemology than previous appreciated. (shrink)

It seems natural to think that compromises ought to be fair. But it is false. In this paper, I argue that it is never a moral desideratum to reach fair compromises and that we are sometimes even morally obligated to try to establish unfair compromises. The most plausible conception of the fairness of compromises is David Gauthier’s principle of minimax relative concession. According to that principle, a compromise is fair when all parties make equal concessions relative to how much they (...) can gain from an agreement and relative to how much they would lose without an agreement. To find out whether reaching a fair compromise sometimes is a moral desideratum, I discuss several paradigmatic cases in friendships, economics and politics, and I try to show that even when the parties have moral reasons to refrain from trying to maximize utility in the negotiations, they do not have moral reasons to aim at a fair compromise. My second claim is that we are sometimes morally obligated to try to establish unfair compromises, in particular when we are dealing with parties that try to establish morally very bad political arrangements. In such cases, we should try to concede as little as possible to achieve an outcome that is morally acceptable. Fair compromises, in other words, are morally much more dubious than is usually appreciated. (shrink)

The paradoxes and dilemmas of social choice theory can be taken as an argument against a certain view of democracy: For the identity theory democracy represents a collective actor standing for aggregated individual interests. According to a second model of society, democracy has its normative basis in structural traits of interaction and cooperation. Within the formal theory of politics both the Arrow-Theorem and the Liberal Paradox undermine the identity theory and give us reasons for the second, the normative theory which (...) takes democracy as being constituted by structural rules. (shrink)

The question of what a group of rational agents would agree on were they to deliberate on how to organise society is central to all hypothetical social contract theories. If morality is to be based on a social contract, we need to know the terms of this contract. One type of social contract theory, contractarianism, aims to derive morality from rationality alone. Contractarians need to show, amongst other things, that rational and self-interested individuals would agree on an impartial division of (...) a cooperative surplus. But it is often claimed that contractarians cannot show this without introducing moral assumptions. This paper argues that on the right understanding of the question contractarians are asking, these worries can be answered. Without relying on moral assumptions, the paper offers a novel derivation of symmetry, which is the axiom responsible for the impartiality of the most famous economic bargaining solutions appealed to by contractarians. (shrink)

Conventions and leaders are believed to be the two pillars of justice and order in society. This paper evaluates this proposition and draws attention to two intriguing ways in which these pillars can malfunction. The argument is constructed by creating two new games, Greta’s Dilemma and the Incarceration Game. An awareness of these problems can help us use our ‘moral intention’ to reexamine our own collective behavior and to design prior conventions, which limit the power of the leader.

This paper gives prescriptions for introducing ethical concerns into the economic theory of the firm. Topics include social responsibility, corporate governance, profit maximization, competition barriers, collusion, the market system, and welfare economics. The need for such prescriptions is based on a content analysis of 21 managerial economics texts for their coverage of ethics. My analysis finds that substantive discussions of ethics are conspicuous by their absence. As ethical breaches can involve significant monetary damages to a firm – particularly through adverse (...) market reactions – moral-reasoning abilities can complement analytical skills. Consequently, my analysis demonstrates how ethics figure into the opportunity costs of managerial decision making, which is central to the economic definition of profit. (shrink)

Recently, philosophers have investigated the emergence and evolution of the social contract. Yet extant work is limited as it focuses on the use of simple behavioral norms in rather rigid strategic settings. Drawing on axiomatic bargaining theory, we explore the dynamics of more sophisticated norms capable of guiding behavior in a wide range of scenarios. Overall, our investigation suggests the utilitarian bargaining solution has a privileged status as it has certain stability properties other social arrangements lack.

In a recent article, McClennen (2012) defends an alternative bargaining theory in response to his criticisms of the standard Nash bargaining solution as a principle of distributive justice in the context of the social contract. McClennen rejects the orthodox concept of expected individual utility maximizing behavior that underlies the Nash bargaining model in favor of what he calls full rationality, and McClennen’s full cooperation bargaining theory demands that agents select the most egalitarian strictly Pareto-optimal distributional outcome that is strictly Pareto-superior (...) to the state of nature. I argue that McClennen’s full cooperators are best described as reasonable agents whose rationality is constrained by moral considerations and that McClennen’s bargaining theory is moralized in this regard. If, by contrast, the orthodox concept of rationality is assumed and plausible assumptions are made about human nature and social cooperation, then a modified version of the standard Nash bargaining solution, which I call the stabilized Nash bargaining solution (Moehler 2010), is justified. From the perspective of rational agents, the stabilized Nash bargaining solution can accommodate McClennen’s criticisms of the standard Nash bargaining solution in the context of the social contract and, for such agents, it can serve as a principle of distributive justice in deeply morally pluralistic societies. (shrink)

The article investigates what happens when philosophy meets and begins to establish connections with two formal research methods such as game theory and network science. We use citation analysis to identify, among the articles published in Synthese and Philosophy of Science between 1985 and 2021, those that cite the specialistic literature in game theory and network science. Then, we investigate the structure of the two corpora thus identified by bibliographic coupling and divide them into clusters of related papers by automatic (...) community detection. Lastly, we construct by the same bibliometric techniques a reference map of philosophy, on which we overlay our corpora to map the diffusion of game theory and network science in the various sub-areas of recent philosophy. Three main results derive from this study. Philosophers are interested not only in using and investigating game theory as a formal method belonging to applied mathematics and sharing many relevant features with social choice theory, but also in considering its applications in more empirically oriented disciplines such as social psychology, cognitive science, or biology. Philosophers focus on networks in two research contexts and in two different ways: in the debate on causality and scientific explanation, they consider the results of network science; in social epistemology, they employ network science as a formal tool. In the reference map, logic—whose use in philosophy dates back to a much earlier period—is distributed in a more uniform way than recently encountered disciplines such as game theory and network science. We conclude by discussing some methodological limitations of our bibliometric approach, especially with reference to the problem of field delineation. (shrink)