Practical reasoning is an agent's capacity to determine her course of behavior on the base of some evaluation of available alternatives. Reasoning is instrumental insofar as an agent decides over available alternatives by aiming to choose the best means to realize her own goals. Reasoning is strategic if the agent assumes that what the best means to realize her own goals is depends on what other agents will do. Strategic reasoning still plays a central role in influential accounts of social (...) action. This paper first argues for the view that purely strategic reasoners are unable to achieve even the most basic and unproblematic forms of mutually beneficent coordination, and then gathers some elements of a richer account of relevant forms of practical reasoning. (shrink)

Naturalism, as Binmore understands the term, is characterized by a scientific stance on moral behavior. Binmore claims that a naturalistic account of morality necessarily goes with the conviction “that only hypothetical imperatives make any sense”. In this paper it is argued that this claim is mistaken. First, as Hume’s theory of promising shows, naturalism in the sense of Binmore is very well compatible with acknowledging the importance of categorical imperatives in moral practice. Moreover, second, if Binmore’s own theory of moral (...) practice and its evolution is correct, then the actual moral practice does-and in fact must-incorporate norms, which have the form of a categorical imperative. Categorical imperatives are part of social reality and, therefore, any (normative) moral theory that adequately reflects moral practice must also include categorical imperatives. (shrink)

Some arguments against the assumption that ordinary people may share common knowledge are sound. The apparent cost of such arguments is the rejection of scientific theories that appeal to common knowledge. My proposal is to accept the arguments without rejecting the theories. On my proposal, common knowledge is shared by ideally rational people, who are not just mathematically simple versions of ordinary people. They are qualitatively different from us, and theorizing about them does not lead to predictions about our behavior. (...) Nevertheless, models of action that assume common knowledge have a role to play in our understanding of collective rationality. (shrink)

The paper focuses on the issue of compatibility of social institution and convention. At first, it introduces the modest account of conventionality building on five distinctive features – interdependence, arbitrariness, mind-independence, spontaneity, and normative-neutrality – which constitute conventional behaviour, then it presents the two major theories of social institutions that explain them in terms of rules, or equilibria. The argument is that conventions cover a wide-ranging area and cannot be identified with the category of institutions because it would be too (...) restrictive and contradictory to the initial modest account. (shrink)

The Prisoner's Dilemma (PD) exhibits a tragedy in this sense: if the players are fully informed and rational, they are condemned to a jointly dispreferred outcome. In this essay I address the following question: What feature of the PD's payoff structure is necessary and sufficient to produce the tragedy? In answering it I use the notion of a trembling-hand equilibrium. In the final section I discuss an implication of my argument, an implication which bears on the persistence of the problem (...) posed by the PD. (shrink)

For most of the problems that economists consider, the assumption that agents are self-interested works well enough, generating predictions that are broadly consistent with observation. In some significant cases, however, we find economic behavior that seems to be inconsistent with self-interest. In particular, we find that some public goods and some charitable ventures are financed by the independent voluntary contributions of many thousands of individuals. In Britain, for example, the lifeboat service is entirely financed by voluntary contributions. In all rich (...) countries, charitable appeals raise large amounts of money for famine relief in the Third World. The willingness of individuals to contribute to such projects is an economic fact that requires an explanation. (shrink)

Famously, Kripke has argued that the central portion of the Philosophical Investigations describes both a skeptical paradox and its skeptical solution. Solving the paradox involves the element of the community, which determines correctness conditions for rule-following behavior. What do such conditions precisely consist of? Is it accurate to say that there is no fact to the matter of rule following? How are the correctness conditions sustained in the community? My answers to these questions revolve around the idea that a rule (...) is followed insofar as a convention is in place. In particular, I consider the game-theoretic definition of convention offered by David Lewis and I show that it illuminates essential aspects of the communitarian understanding of rule-following. Make the following experiment: say “It’s cold here” and mean “It’s warm here”. Can you do it?Ludwig Wittgenstein, Philosophical Investigations, 1953, §510.I can’t say “it’s cold here” and mean “it’s warm here”—at least, not without a little help from my friends.David Lewis, Convention. (shrink)

Salience reasoning, many have argued, can help solve coordination problems, but only if such reasoning is supplemented by higher-order predictions, e.g. beliefs about what others believe yet others will choose. In this paper, I will argue that this line of reasoning is self-undermining. Higher-order behavioral predictions defeat salience-based behavioral predictions. To anchor my argument in the philosophical literature, I will develop it in response and opposition to the popular Lewisian model of salience reasoning in coordination games. This model imports the (...) problematic higher-order beliefs by way of a ‘symmetric reasoning’ constraint. In the second part of this paper, I will argue that a player may employ salience reasoning only if she suspends judgment about what others believe yet others will do. (shrink)

The thesis of this essay is that social conventions of the kind Lewis modeled are generated and maintained by a form of practical reasoning which is essentially common. This thesis is defended indirectly by arguing for an interpretation of the role of salience in Lewis’s account of conventions. The remarkable ability of people to identify salient options and appreciate their practical significance in contexts of social interaction, it is argued, is best explained in terms of their exercise of what I (...) call “salience reasoning,” a form of common practical reasoning. The more widely accepted understanding of salience competence, the “natural salience” understanding, fails as an interpretation of the notion at work in Lewis and Schelling (on whom Lewis relied) and is inadequate as an explanation of salience competence. (shrink)

This paper argues that group attitudes can be assessed in terms of standards of rationality and that group-level rationality need not be due to individual-level rationality. But it also argues that groups cannot be collective epistemic agents and are not collectively responsible for collective irrationality. I show that we do not need the concept of collective epistemic agency to explain how group-level irrationality can arise. Group-level irrationality arises because even rational individuals can fail to reason about how their attitudes will (...) combine with those of others. In some cases they are morally responsible for this failure, in others they are not. Moreover, the argument for collective epistemic agency is incoherent because reasons-for-groups are ipso facto reasons-for-individual. Instead of talking about reasons-for-groups, we should therefore distinguish between self-regarding reasons and group-regarding reasons. Both kinds of reasons are reasons-for-individuals. These conceptual considerations in favour of moderate individualism are strengthened by an analysis of our moral practice of responding to collective shortfalls of rationality and by the unpalatable moral implications of collectivism about epistemic agency. There is no need to change the subject. Groups can be rational or irrational, but they do not reason. (shrink)

On many occasions, individuals are able to coordinate their actions. The first empirical evidence to this effect has been described by Schelling (1960) in an informal experiment. His results were corroborated many years later by Mehta et al. (1994a,b) and Bacharach and Bernasconi (1997). From the point of view of mainstream game theory, the success of individuals in coordinating their actions is something of a mystery. If there are two or more strict Nash equilibria, mainstream game theory has no means (...) of explaining why people tend to choose their part of one and the same equilibrium. Textbooks (see, e.g., Rasmusen, 1989 and Kreps, 1990) refer to the fact that players may use focal points (see Schelling (1960)) or social conventions (see Lewis (1969)). Both notions cannot easily be incorporated into mainstream game theory, however. The notion of social conventions has recently been extensively studied in the context of evolutionary game theory where a population of agents interacts with each other. The central focus of this paper, however, is on situations where a few players play a game only once and I study how they may coordinate their actions. (shrink)

This article presents a community-based account of salience as an alternative and a complement to the ‘natural salience’ approach which is endorsed by almost all game theorists who use this concept. While in the naturalistic approach, salience is understood as an objective and natural property of some entities, the community-based account claims that salience is a function of community membership. Building on David Lewis’s theory of common knowledge and on some of its recent refined accounts, I suggest that salience acts (...) as a correlating device in a correlated equilibrium. What is constitutive of salience is common understanding, the fact that agents have common knowledge that they share the same modes of reasoning with respect to a well-identified set of events. I argue that the basis for common understanding is community membership. The relevance of this account stems from the fact that it answers the objection that salience is either unnecessary or unable to account for coordination between rational agents. (shrink)

Standard game theory cannot explain the selection of payoff-dominant outcomes that are best for all players in common-interest games. Theories of team reasoning can explain why such mutualistic cooperation is rational. They propose that teams can be agents and that individuals in teams can adopt a distinctive mode of reasoning that enables them to do their part in achieving Pareto-dominant outcomes. We show that it can be rational to play payoff-dominant outcomes, given that an agent group identifies. We compare team (...) reasoning to other theories that have been proposed to explain how people can achieve payoff-dominant outcomes, especially with respect to rationality. Some authors have hoped that it would be possible to develop an argument that it is rational to group identify. We identify some large—probably insuperable—problems with this project and sketch some more promising approaches, whereby the normativity of group identification rests on morality. (shrink)

This article will compare and contrast two very different accounts of convention: the game-theoretical account of Lewis in Convention, and the account initially proposed by Margaret Gilbert (the present author) in chapter six of On Social Facts, and further elaborated here. Gilbert’s account is not a variant of Lewis’s. It was arrived at in part as the result of a detailed critique of Lewis’s account in relation to a central everyday concept of a social convention. An account of convention need (...) not be judged by that standard. Perhaps it reveals the nature of an important phenomenon. Looked at in that light, these very different accounts are not incompatible. Indeed, neither should be ignored if one is seeking to understand the way in which human beings arrive at some degree of social order. (shrink)

Philosophers using game-theoretical models of human interactions have, I argue, often overestimated what sheer rationality can achieve. (References are made to David Gauthier, David Lewis, and others.) In particular I argue that in coordination problems rational agents will not necessarily reach a unique outcome that is most preferred by all, nor a unique 'coordination equilibrium' (Lewis), nor a unique Nash equilibrium. Nor are things helped by the addition of a successful precedent, or by common knowledge of generally accepted personal principles. (...) Commitments like those generated by agreements may be necessary for rational expectations to arise. Social conventions, construed as group principles (following the analysis in my book On Social Facts), would suffice for this task. (shrink)

Narrative is rarely mentioned in philosophical discussions of collective intentionality and group identity despite the fact that narratives are often thought important for the formation of action intentions and self-identity in individuals. We argue that the concept of the ‘we-narrative’ can solve several problems in regard to defining the status of the we. It provides the typical format for the attribution of joint agency; it contributes to the formation of group identity; and it generates group stability.

This paper examines two strands of literature regarding economic models of cooperation. First, payoff transformation theories assume that people may not be exclusively motivated by self-interest, but also care about equality and fairness. Second, team reasoning theorists assume that people might reason from the perspective of the team, rather than an individualistic perspective. Can these two theories be unified? In contrast to the consensus among team reasoning theorists, I argue that team reasoning can be viewed as a particular type of (...) payoff transformation. However, I also demonstrate that many payoff transformations yield actions that team reasoning rules out. (shrink)

The problem of cooperation for rational actors comprises two sub problems: the problem of the intentional object (under what description does each actor perceive the situation?) and the problem of common knowledge for finite minds (how much belief iteration is required?). I will argue that subdoxastic signalling can solve the problem of the intentional object as long as this is confined to a simple coordination problem. In a more complex environment like an assurance game signals may become unreliable. Mutual beliefs (...) can then bolster the earlier attained equilibrium. I will first address these two problems by means of an example, in order to draw some more general lessons about combining evolutionary theory and rationality later on. (shrink)

We propose a new account of collective moral obligation. We argue that several agents have a moral obligation together only if they each have (i) a context-specific capacity to view their situation from the group’s perspective, and (ii) at least a general capacity to deliberate about what they ought to do together. Such an obligation is irreducibly collective, in that it does not imply that the individuals have any obligations to contribute to what is required of the group. We highlight (...) various distinctive features of our account. One such feature is that moral obligations are always relative to an agential perspective. (shrink)

According to decision theory, the rational initial action in a sequential decision-problem may be found by backward induction or folding back. But the reasoning which underwrites this claim appeals to the agent's beliefs about what she will later believe, about what she will later believe she will still later believe, and so forth. There are limits to the depth of people's beliefs. Do these limits pose a threat to the standard theory of rational sequential choice? It is argued, first, that (...) the traditional solutions of certain games depend on knowledge which exceeds depth limits, and that these solutions therefore cannot be shown rational in the usual sense. Then, for that related reason even folding back solutions of one-person problems cannot be! A revision of our notion of rational choice is proposed, analogous to the reliabilist account of knowledge of Goldman and others, by which this paradox is resolved. (shrink)

One of the conceptual limitations of the orthodox game theory is its inability to offer definitive theoretical predictions concerning the outcomes of noncooperative games with multiple rationalizable outcomes. This prompted the emergence of goal-directed theories of reasoning – the team reasoning theory and the theory of hypothetical bargaining. Both theories suggest that people resolve non-cooperative games by using a reasoning algorithm which allows them to identify mutually advantageous solutions of non-cooperative games. The primary aim of this thesis is to enrich (...) the current debate on goaldirected reasoning theories by studying the extent to which the principles of the bargaining theory can be used to formally characterize the concept of mutual advantage in a way which is compatible with some of the conceptually compelling principles of orthodox game theory, such as individual rationality, incentive compatibility, and non-comparability of decision-makers’ personal payoffs. I discuss two formal characterizations of the concept of mutual advantage derived from the aforementioned goal-directed reasoning theories: A measure of mutual advantage developed in collaboration with Jurgis Karpus, which is broadly in line with the notion of mutual advantage suggested by Sugden, and the benefit-equilibrating bargaining solution function, which is broadly in line with the principles underlying Conley and Wilkie’s solution for Pareto optimal point selection problems with finite choice sets. I discuss the formal properties of each solution, as well as its theoretical predictions in a number of games. I also explore each solution concept’s compatibility with orthodox game theory. I also discuss the limitations of the aforementioned goal-directed reasoning theories. I argue that each theory offers a compelling explanation of how a certain type of decision-maker identifies the mutually advantageous solutions of non-cooperative games, but neither of them offers a definitive answer to the question of how people coordinate their actions in non-cooperative social interactions. (shrink)

This paper aims to assess current theoretical findings on the origin of coordination by salience and suggests a way to clarify the existing framework. The main concern is to reveal how different coordination mechanisms rely on specific epistemic aspects of reasoning. The paper highlights the fact that basic epistemic assumptions of theories diverge in a way that makes them essentially distinctive. Consequently, recommendations and predictions of the traditional views of coordination by salience are, in principle, based on the processes related (...) to the agent’s presumptions regarding the cognitive abilities of a co-player. This finding implies that we should consider these theories as complementary, and not competitive, explanations of the same phenomenon. -/- . (shrink)