Rational choice theory enjoys unprecedented popularity and influence in the behavioral and social sciences, but it generates intractable problems when applied to socially interactive decisions. In individual decisions, instrumental rationality is defined in terms of expected utility maximization. This becomes problematic in interactive decisions, when individuals have only partial control over the outcomes, because expected utility maximization is undefined in the absence of assumptions about how the other participants will behave. Game theory therefore incorporates not only rationality but also common (...) knowledge assumptions, enabling players to anticipate their co-players' strategies. Under these assumptions, disparate anomalies emerge. Instrumental rationality, conventionally interpreted, fails to explain intuitively obvious features of human interaction, yields predictions starkly at variance with experimental findings, and breaks down completely in certain cases. In particular, focal point selection in pure coordination games is inexplicable, though it is easily achieved in practice; the intuitively compelling payoff-dominance principle lacks rational justification; rationality in social dilemmas is self-defeating; a key solution concept for cooperative coalition games is frequently inapplicable; and rational choice in certain sequential games generates contradictions. In experiments, human players behave more cooperatively and receive higher payoffs than strict rationality would permit. Orthodox conceptions of rationality are evidently internally deficient and inadequate for explaining human interaction. Psychological game theory, based on nonstandard assumptions, is required to solve these problems, and some suggestions along these lines have already been put forward. Key Words: backward induction; Centipede game; common knowledge; cooperation; epistemic reasoning; game theory; payoff dominance; pure coordination game; rational choice theory; social dilemma. (shrink)

In Newcomb’s paradox you can choose to receive either the contents of a particular closed box, or the contents of both that closed box and another one. Before you choose though, an antagonist uses a prediction algorithm to accurately deduce your choice, and uses that deduction to fill the two boxes. The way they do this guarantees that you made the wrong choice. Newcomb’s paradox is that game theory’s expected utility and dominance principles appear to provide conflicting recommendations for what (...) you should choose. Here we show that the conflicting recommendations assume different probabilistic structures relating your choice and the algorithm’s prediction. This resolves the paradox: the reason there appears to be two conflicting recommendations is that the probabilistic structure relating the problem’s random variables is open to two, conflicting interpretations. We then show that the accuracy of the prediction algorithm in Newcomb’s paradox, the focus of much previous work, is irrelevant. We end by showing that Newcomb’s paradox is time-reversal invariant; both the paradox and its resolution are unchanged if the algorithm makes its ‘prediction’ after you make your choice rather than before. (shrink)

In a recent issue of this journal, C. L. Sheng claims to havesolved andexplained the Prisoner's Dilemma (PD) by studying it ‘from a moral point of view’ - i.e., by assuming that each player feels sympathy for the other. Sheng does not fully clarify this claim, but there is textual evidence that his point is this: PD's arise only for agents who feel little or no sympathy for each other; they cannot arise in the presence of a high degree of (...) reciprocal sympathy. A high degree of such sympathysolves the PD in that it prevents PD's from arising, and a low degree of itexplains the PD in that it provides an essential condition for the occurrence of that game. This thesis is false, as some examples show. These examples are important; they prevent us from underestimating the problem posed by the PD. (shrink)

Examples involving common causes — most prominently, examples involving genetically influenced choices — are analytically equivalent not to standard Newcomb Problems — in which the Predictor genuinely predicts the agent's decision — but to non-standard Newcomb Problems — in which the Predictor guarantees the truth of her predictions by interfering with the agent's decision to make the agent choose as it was predicted she would. When properly qualified, causal and epistemic decision theories diverge only on standard — not on non-standard (...) — Newcomb Problems, and thus not on examples involving common causes. (shrink)

I have maintained that some but not all prisoners' dilemmas are side-by-side Necomb problems. The present paper argues that, similarly, some but not all versions of Newcomb's Problem are prisoners' dilemmas in which Taking Two and Predicting Two make an equilibrium that is dispreferred by both the box-chooser and predictor to the outcome in which only one box is taken and this is predicted. I comment on what kinds of prisoner's dilemmas Newcomb's Problem can be, and on opportunities that results (...) reached may open for kinds of cooperative reasoning in versions of Newcomb's Problem. (shrink)

Among various cases that equally admit of evidentialist reasoning, the supposedly evidentialist solution has varying degrees of intuitive attractiveness. I suggest that cooperative reasoning may account for the appeal of apparently evidentialist behavior in the cases in which it is intuitively attractive, while the inapplicability of cooperative reasoning may account for the unattractiveness of evidentialist behaviour in other cases. A collective causal power with respect to agreed outcomes, not evidentialist reasoning, makes cooperation attractive in the Prisoners' Dilemma. And a natural (...) though unwarranted assumption of such a power may account for the intuitive appeal of the one-box response in Newcomb's Problem. (shrink)

A fully adequate solution to Newcomb’s Problem (Nozick 1969) should reveal the source of its extraordinary elusiveness and persistent intractability. Recently, a few accounts have independently sought to meet this criterion of adequacy by exposing the underlying source of the problem’s profound puzzlement. Thus, Sorensen (1987), Slezak (1998), Priest (2002) and Maitzen and Wilson (2003) share the ‘no box’ view according to which the very idea that there is a right choice is misconceived since the problem is ill-formed or incoherent (...) in some way. Among proponents of this view, Richard Jeffrey (2004) recently declared that he renounces his earlier position that accepted Newcomb problems as genuine decision problems. Significantly, Jeffrey suggests that “Newcomb problems are like Escher’s famous staircase on which an unbroken ascent takes you back where you started” (Jeffrey (2004; 113)). Jeffrey’s analogy is apt for a puzzle whose specific logical features can be precisely articulated. Along the lines of these related approaches, I propose to improve and clarify them by providing such a deeper analysis that elucidates their essential, related insights. (shrink)

David Gauthier claims that it can be rational to co-operate in a prisoner's dilemma if one has adopted a disposition constraining one's self from maximizing one's individual expected utility, i.e., a constrained maximizer disposition. But I claim cooperation cannot be both voluntary and constrained. In resolving this tension I ask what constrained maximizer dispositions might be. One possibility is that they are rationally acquired, irrevocable psychological mechanisms which determine but do not rationalize cooperation. Another possibility is that they are rationally (...) acquired preference-functions rationalizing cooperation as maximizing. I argue that if they are the first thing, then their adoption fails to make co-operation rational even if, as Gauthier also claims, actions are rational if they express rational dispositions. I then suggest that taking constrained maximizer dispositions to be things of the second sort would result in them being able to make co-operation rational, and that so-taking them therefore serves the bulk and spirit of Gauthier's larger claims, which I reconstruct accordingly. (shrink)

Since Phillipa Foot’s paper ‘Morality as a System of Hypothetical Imperatives’ was published some twenty-five years ago, questions about categorical imperatives and the alleged rationality of acting morally have been of central concern to ethicists. For critics and friends of Kantian ethical theories, these questions have special importance. One of the distinctive features of Kantian ethical theories is that they claim that there are categorical imperatives: imperatives which dictate which actions one should follow insofar as one is rational.This way of (...) parsing morally right action as a kind of rational action seems to side-step at least some of the anti-realist objections that other kinds of moral theories must face.1 Instead, the Kantian must defend the claim that failure to act morally is a failure of rationality. Rationality as a normative concept is sometimes thought to be more clear and perhaps more objective than other basic normative concepts. (shrink)

This commentary focuses on the parts of psychological game theory dealing with preference, as illustrated by team reasoning, and supports the conclusion that these theoretical notions do not contribute above and beyond existing theory in understanding social interaction. In particular, psychology and games are already bridged by a comprehensive, formal, and inherently psychological theory, interdependence theory (Kelley & Thibaut 1978; Kelley et al. 2003), which has been demonstrated to account for a wide variety of social interaction phenomena.

L'histoire de la philosophie est marquée par de nombreuses tentatives pour soustraire la morale aux préceptes dictés par une croyance religieuse aveugle, l'arracher aux limbes des émotions, des intérêts égoïstes, des «nobles» sentiments ou des passions troubles de la volonté de puissance, la sortir du terrain où se disputent âprement les évidences intuitives, l'inscrire dans le règne de la raison. Il s'agit de tentatives en vue de fonder les obligations morales, l'éthique tout court, de manière rationnelle. Or, ces démarches peuvent (...) emprunter des chemins variables selon que la rationalité de l'action se trouve conceptualisée dans la perspective des intérêts et préférences raisonnés, ou qu'elle se comprend à partir de la raison pratique dans sa pureté. (shrink)

Un grand nombre de problèmes dont traite aujourd'hui la théorie de la décision reposent sur des problématiques qui appartiennent à des approches philosophiques, méthodologiques et théoriques fort différentes et dont l'auteur deChoix rationnel et vie publiquedéplore à juste titre l'absence d'unité intrinsèque. En effet, les racines de la théorie contemporaine du choix rationnel ont des ramifications dans trois traditions philosophiques qui ont été maintenues sans entretenir de contacts: théories philosophiques de l'action d'Aristote à Hume, à Kant et à la philosophie (...) analytique de l'action de Davidson; la théorie du conflit de Hobbes à David Gauthier; la théorie de la justice (d'inspiration utilitariste qui a profondément marqué la pensée économique du XXesiècle). Ces branches ont entretenu des interactions sporadiques, mais ces relations n'ont jamais été exploitées systématiquement. Le travail que présente l'auteur est une première tentative dans cette direction, du moins en langue française. (shrink)

The rational choice paradigm has proved to be a fruitful means of analysis and explanation in various disciplines concerned with questions of practical rationality, but in various attempts to extend its fields of application the deficiencies of the original account of rational choice have become evident. This paper tries to give a systematic overview of ways in which the rational choice paradigm can be extended and modified.

Professions are granted autonomy by society, to regulate their own affairs. In return for the economic benefits autonomy grants to professions, society expects professions to act in a socially responsible manner. This paper presents a game-theoretic analysis of the relationship between society and professions, which shows that the relationship is unstable in the face of opportunities for professions to renege on the social contract. It also shows how periodic controversies regarding the degree to which professionals act in the public interest (...) are expected to occur periodically, and how they are resolved. (shrink)

RÉSUMÉ: Une «situation de choix paradoxal» est une situation dans laquelle un agent connaîtrait davantage de succès en regard des préférences qu’il a effectivement, si ces préférences étaient différentes de ce qu’elles sont. Supposons que les agents rationnels ne choisissent pas à l’encontre de leurs préférences, que leur choix n’est déterminé que par ces préférences, et que leurs préférences intrinsèques ne changent pas de façon spontanée, automatique et directe sous l’influence de la critique rationnelle. Même dans de telles hypothèses, les (...) agents rationnels peuvent résoudre optimalement un éventail de situations de choix paradoxal au moyen de mécanismes qui les amènent à réviser leurs préférences. Dans cet article, je présente et défends un tel modèle de révision rationnelle des préférences. (shrink)