The paper argues that the standard decision theoretic account of strategies and their rationality or optimality is much too narrow, that strategies should rather condition future action to future decision situations (a point of view already developed in my Grundlagen der Entscheidungstheorie, sect. 4.4), that practical deliberation must therefore essentially rely on a relation of superiority and inferiority between possible future decision situations, that all this allows to substantially broaden the theory of practical rationality, that a long list of points (...) attended to in the literature can be subsumed under the broadened perspective (including a novel view on the iterated prisoner's dilemma and on iterated Newcomb's problem, which, however, is revised in Spohn (2003) "Dependency Equilibria and the Causal Structure of Decision and Game Situation"), and that the task to complete and systematize this list indeed forms a fruitful research programme. (shrink)

In addition to being uncertain about what the world is like, one can also be uncertain about one’s own spatial or temporal location in the world. My aim is to pose a problem arising from the interaction between these two sorts of uncertainty, solve the problem, and draw two lessons from the solution.

When does it make sense to act randomly? A persuasive argument from Bayesian decision theory legitimizes randomization essentially only in tie-breaking situations. Rational behaviour in humans, non-human animals, and artificial agents, however, often seems indeterminate, even random. Moreover, rationales for randomized acts have been offered in a number of disciplines, including game theory, experimental design, and machine learning. A common way of accommodating some of these observations is by appeal to a decision-maker’s bounded computational resources. Making this suggestion both precise (...) and compelling is surprisingly difficult. Toward this end, I propose two fundamental rationales for randomization, drawing upon diverse ideas and results from the wider theory of computation. The first unifies common intuitions in favour of randomization from the aforementioned disciplines. The second introduces a deep connection between randomization and memory: access to a randomizing device is provably helpful for an agent burdened with a finite memory. Aside from fit with ordinary intuitions about rational action, the two rationales also make sense of empirical observations in the biological world. Indeed, random behaviour emerges more or less where it should, according to the proposal. (shrink)

One interpretation of the conditional If P then Q is as saying that the probability of Q given P is high. This is an interpretation suggested by Adams (1966) and pursued more recently by Edgington (1995). Of course, this probabilistic conditional is nonmonotonic, that is, if the probability of Q given P is high, and R implies P, it need not follow that the probability of Q given R is high. If we were confident of concluding Q from the fact (...) that we knew P, and we have stronger information R, we can no longer be confident of Q. We show nonetheless that usually we would still be justified in concluding Q from R. In other words, probabilistic conditionals are mostly monotonic. (shrink)

An information completion of an extensive game is obtained by extending the information partition of every player from the set of her decision nodes to the set of all nodes. The extended partition satisfies Memory of Past Knowledge (MPK) if at any node a player remembers what she knew at earlier nodes. It is shown that MPK can be satisfied in a game if and only if the game is von Neumann (vN) and satisfies memory at decision nodes (the restriction (...) of MPK to a player's own decision nodes). A game is vN if any two decision nodes that belong to the same information set of a player have the same number of predecessors. By providing an axiom for MPK we also obtain a syntactic characterization of the said class of vN games. (shrink)

I defend a general rule for updating beliefs that takes into account both the impact of new evidence and changes in the subject’s location. The rule combines standard conditioning with a shifting operation that moves the center of each doxastic possibility forward to the next point where information arrives. I show that well-known arguments for conditioning lead to this combination when centered information is taken into account. I also discuss how my proposal relates to other recent proposals, what results it (...) delivers for puzzles like the Sleeping Beauty problem, and whether there are diachronic constraints on rational belief at all. (shrink)

p. cm. — (Zeuthen lecture book series) Includes bibliographical references (p. ) and index. ISBN 0-262-18187-8 (hardcover : alk. paper). — ISBN 0-262-68100-5 (pbk. : alk. paper) 1. Decision-making. 2. Economic man. 3. Game theory. 4. Rational expectations (Economic theory) I. Title. II. Series.

Analyses of the Sleeping Beauty Problem are polarised between those advocating the “1/2 view” (“halfers”) and those endorsing the “1/3 view” (“thirders”). The disagreement concerns the evidential relevance of self-locating information. Unlike halfers, thirders regard self-locating information as evidentially relevant in the Sleeping Beauty Problem. In the present study, we systematically manipulate the kind of information available in different formulations of the Sleeping Beauty Problem. Our findings indicate that patterns of judgment on different formulations of the Sleeping Beauty Problem do (...) not fit either the “1/2 view” or the “1/3 view.” Human reasoners tend to acknowledge self-locating evidence as relevant, but discount its weight significantly. Accordingly, self-locating information may trigger more cautious judgments of confirmation than familiar kinds of statistical evidence. We also discuss how these results can advance the debate by providing a more nuanced and empirically grounded account or explication of the evidential impact of self-locating information. (shrink)

We analyze the sequential structure of dynamic games with perfect information. A three-stage account is proposed, that species setup, reasoning and play stages. Accordingly, we define a player as a set of agents corresponding to these three stages. The notion of agent connectedness is introduced into a type-based epistemic model. Agent connectedness measures the extent to which agents' choices are sequentially stable. Thus describing dynamic games allows to more fully understand strategic interaction over time. In particular, we provide suffcient conditions (...) for backward induction in terms of agent connectedness. Also, our framework makes explicit that the epistemic independence assumption involved in backward induction reasoning is stronger than usually presumed, and makes accessible multiple-self interpretations for dynamic games. (shrink)

from now on , was to point out that the model commonly used to describe . a decision problem with imperfect recall suffers from major ambiguities in its interpretation. We claimed that several issues which were immaterial in decision problems with perfect recall may be of importance in the analysis of decision problems with imperfect recall. The issues that we raised can be summarized by the following questions.

The notion of perfect recall in extensive games was introduced by Kuhn (1953), who interpreted it as "equivalent to the assertion that each player is allowed by the rules of the game to remember everything he knew at previous moves and all of his choices at those moves''. We provide a characterization and axiomatization of perfect recall based on two notions of memory: (1) memory of past knowledge and (2) memory of past actions.

Charles Sanders Peirce was one of the United States’ most original and profound thinkers, and a prolific writer. Peirce’s game theory-based approaches to the semantics and pragmatics of signs and language, to the theory of communication, and to the evolutionary emergence of signs, provide a toolkit for contemporary scholars and philosophers. Drawing on unpublished manuscripts, the book offers a rich, fresh picture of the achievements of a remarkable man.