Page 1. Economics and Philosophy, 26 291--320 Copyright C Cambridge University Press doi: 10.1017 / S0266267110000386 TWO KINDS OF WE-REASONING RAUL HAKLI, KAARLO MILLER AND RAIMO TUOMELA University of Helsinki.

Many philosophers have offered accounts of shared actions aimed at capturing what makes joint actions intentionally joint. I first discuss two leading accounts of shared intentions, proposed by Michael Bratman and Margaret Gilbert. I argue that Gilbert’s account imposes more normativity on shared intentions than is strictly needed and that Bratman’s account requires too much cognitive sophistication on the part of agents. I then turn to the team-agency theory developed by economists that I see as offering an alternative route to (...) shared intention. I concentrate on Michael Bacharach’s version of team-agency theory, according to which shared agency is a matter of team-reasoning, team-reasoning depends on group identification and group identification is the result of processes of self-framing. I argue that it can yield an account of shared intention that is less normatively loaded and less cognitively demanding. (shrink)

John Rawls's transition from A Theory of Justice to Political Liberalism was driven by his rejection of Theory's account of stability. The key to his later account of stability is the idea of public reason. We see Rawls's account of stability as an attempt to solve a mutual assurance problem. We maintain that Rawls's solution fails because his primary assurance mechanism, in the form of public reason, is fragile. His conception of public reason relies on a condition of consensus that (...) we argue is unrealistic in modern, pluralistic democracies. After rejecting Rawls's conception of public reason, we offer an ‘indirect alternative’ that we believe is much more robust. We cite experimental evidence to back up this claim. (shrink)

Some behavioral economists argue that the honoring of social norms can be adequately modeled as the optimization of social utility functions in which the welfare of others appears as an explicit argument. This paper suggests that the large experimental claims made for social utility functions are premature at best, and that social norms are better studied as equilibrium selection devices that evolved for use in games that are seldom studied in economics laboratories.

We-thinking theories allow groups to deliberate as agents. They have been introduced into the economic domain for both theoretical and empirical reasons. Among the few scholars who have proposed formal approaches to illustrate how we-thinking arises, Bacharach offers one of the most developed theories from the game theoretic point of view. He presents a number of intuitions, not always mutually consistent and not fully developed. In this article, I propose a way to complete Bacharach’s theory, generalizing the interdependence hypothesis and (...) building on his intuition about vacillation. It is a simple model of vacillation between the I and we-modes of reasoning, as a way in which we-thinking can come to mind in the face of a decision problem. The vacillation model makes we-reasoning more easily usable in game theory. (shrink)

Cooperation is the foundation of human social life, but it sometimes requires individuals to choose against their individual self-interest. How then is cooperation sustained? How do we decide when instead to follow our own goals? I develop a model that builds on Bacharach (in: Gold, Sugden (eds) Beyond individual choice: teams and frames in game theory, 2006) ‘circumspect we-reasoning’ to address these questions. The model produces a threshold cost/benefit ratio to describe when we-reasoning players should choose cooperatively. After assumptions regarding (...) player types and beliefs, we predict how the extent of cooperation varies across games. Results from two experiments offer strong support to the models and predictions herein. (shrink)

We use a sequential voluntary contribution game to compare the relative impact of a first-mover’s non-binding announcement versus binding commitment on cooperation. We find that a non-binding announcement and a binding commitment increase individual contributions to a similar extent. Since announced contributions systematically exceed commitments, in sessions with a non-binding announcement, second-movers tend to contribute more to the group activity than in sessions with a binding commitment. Yet, second-movers appear to be more motivated towards achieving a social optimum when the (...) first-mover uses commitment. We also find that a non-binding announcement has a higher impact on individual propensity to cooperate than the ex post contribution of the first-mover. However, the failure to make announced contributions decreases cooperation even though the first-mover is reassigned in every period. (shrink)

Subjects communicated prior to playing trust games; the richness of the communication media and the topics of conversation were manipulated. Communication richness failed to produce significant differences in first-mover investments. However, the topics of conversation made a significant difference: the amounts sent were considerably higher in the unrestricted communication conditions than in the restricted communication and no-communication conditions. Most importantly, we find that first-movers' expectations of second-movers' reciprocation are influenced by communication and strongly predict their levels of investment.

Pro-social behaviors are voluntary behaviors that benefit other people or society as a whole, such as charitable donations, cooperation, trust, altruistic punishment, and fairness. These behaviors have been widely described through non self-interest decision-making in behavioral experimental studies and are thought to be increased by social preference motives. Importantly, recent studies using a combination of neuroimaging and brain stimulation, designed to reveal the neural mechanisms of pro-social behaviors, have found that a wide range of brain areas, specifically the prefrontal cortex, (...) anterior insula, anterior cingulate cortex, and amygdala, are correlated or causally related with pro-social behaviors. In this review, we summarize the research on the neural basis of various kinds of pro-social behaviors and describe a common shared neural circuitry of these pro-social behaviors. We introduce several general ways in which experimental economics and neuroscience can be combined to develop important contributions to understanding social decision-making and pro-social behaviors. Future research should attempt to explore the neural circuitry between the frontal lobes and deeper brain areas. (shrink)

We consider the notions of static and dynamic reasonableness of requests by an authority in a trust game experiment. The authority, modeled as the experimenter, systematically varies the experimental norm of what is expected from trustees to return to trustors, both in terms of the level of each request and in terms of the sequence of the requests. Static reasonableness matters in a self-biased way, in the sense that low requests justify returning less, but high requests tend to be ignored. (...) Dynamic reasonableness also matters, in the sense that, if requests keep increasing, trustees return less compared to the same requests presented in random or decreasing order. Requests never systematically increase trustworthiness but may decrease it. (shrink)

Certain messages, even when not directly payoff relevant, can be a credible form of communication in light of natural social preferences. Social image concerns and other-regarding preferences interact to create incentives to communicate about how one feels about other people. Recognizing the prevalence of the incentive to communicate about one’s social preferences suggests that many social and economic phenomena—from norms of etiquette to cooperation to gift exchange—should be seen, in part, as forms of signaling. These behaviors may be surprisingly robust (...) to material costs, yet sensitive to context. (shrink)

This paper offers a novel ‘changing places’ account of identification in games, where the consequences of role swapping are crucial. First, it illustrates how such an account is consistent with the view, in classical game theory, that only outcomes (and not pathways) are significant. Second, it argues that this account is superior to the ‘pooled resources’ alternative when it comes to dealing with some situations in which many players identify. Third, it shows how such a ‘changing places’ account can be (...) used in games where some of the players identify with one another, but others do not. Finally, it illustrates how the model can handle the notion that identification comes in degrees. (shrink)

This article introduces and discusses from a philosophical point of view the nascent field of neuroeconomics, which is the study of neural mechanisms involved in decision-making and their economic significance. Following a survey of the ways in which decision-making is usually construed in philosophy, economics and psychology, I review many important findings in neuroeconomics to show that they suggest a revised picture of decision-making and ourselves as choosing agents. Finally, I outline a neuroeconomic account of irrationality.

Accountability is present in many types of social relations; for example, the accountability of elected representatives to voters is the key characteristic of representative democracy. We distinguish between two institutional mechanisms of accountability, i.e., opportunity to punish and requirement of a justification, and examine the separate and combined effects of these mechanisms on individual behavior. For this purpose, we designed a decision-making experiment where subjects engage in a three-player trust game with two senders and one responder. We ask whether holding (...) the responder accountable increases senders’ and responders’ contributions in a trust game. When restricting the analysis to the first round, the requirement of justification seems to have a positive impact on senders’ contributions. When the game is played repeatedly, the experience of previous rounds dominates the results and significant treatment effects are no longer seen. We also find that responders tend to justify their choices in terms of reciprocity, which is in line with observed behavior. Moreover, the treatment combining punishment and justification hinders justifications that appeal to pure self-interest. (shrink)

We offer a new and robust model of the emergence and persistence of cooperation when interactions are anonymous, the population is well mixed, and evolution selects strategies according to material payoffs. The model has a Prisoner’s Dilemma structure, but with an outside option of non-participation. The payoff to mutual cooperation is stochastic; with positive probability, it exceeds that from cheating against a cooperator. Under mild conditions, mutually beneficial cooperation occurs in equilibrium. This is possible because the non-participation option holds down (...) the equilibrium frequency of cheating. Dynamic properties of the model are investigated theoretically and through simulations based on replicator dynamics. (shrink)

The paper presents results of recent laboratory experiments that study if and how computer-mediated communication affects cooperation and trust. It is argued that communication medium does not matter much for trust-building and maintenance, whereas relevant pre-play communication and group size can have a major influence. The implications of the findings for the design of sites that depend on trusting communities are discussed.

This paper uses a game-theoretic framework to formalize the Hayekian notion of equilibrium as the compatibility of plans. To do so, it imposes more structure on the conventional model of strategic games. For each player, it introduces goals, goal-oriented strategies, and the goals’ probabilities of success, from which players’ payoffs are derived. The differences between the compatibility of plans and Nash equilibrium are identified and discussed. Furthermore, it is shown that the notion of compatibility of plans, in general, differs from (...) the notion of Pareto efficiency. Since the compatibility of plans across all players can rarely be achieved in reality, a measurement is introduced to determine various degrees of plan compatibility. Several possible extensions and applications of the model are discussed. (shrink)

This paper investigates experimentally the effects of communication in distinct games with complete information. We design four games resulting from the interaction between two incentive elements: strategic complementarity and coordination. These incentive elements allow to analyse the use of cheap talk as an efficiency-enhancing and coordinating device. We implement a restricted communication protocol in repeated settings with fixed partners. Our findings provide robust evidence about how cheap talk interacts with incentives to explain strategic behaviour in a dynamic way. As expected, (...) cheap talk increases efficiency under complementarity incentives, and the coordination level under coordination incentives. As novelty, the use of limited communication in repeated interactions has led to identify specific time-varying message profiles as the most effective messages in the coordination games. While the content of messages is explained by the complementarity incentives, faithfulness to credible messages is determined by the coordination incentives. (shrink)

Cet article se propose d’examiner les hypothèses de la théorie des jeux à cadre variable et leurs implications sur la représentation de l’agent économique en soulignant que i.) le raisonnement en équipe repose sur une internalisation des problèmes décisionnels et que ii.) la prise en considération des représentations subjectives de ces problèmes implique une redéfinition de l’identité de l’agent économique c’est-à-dire de son agentivité.

ChickenHawk is a social-dilemma game that distinguishes uncoordinated from coordinated cooperation. In tests with players belonging to a culturally homogeneous population, natural-language “cheap talk” led to efficient coordination, while nonlinguistic signaling yielded uncoordinated altruism. In a subsequent test with players from a moderately more heterogeneous population nearby, the “cheap talk” condition still produced better coordination than other signaling conditions, but at a lower level and with fewer acts of altruism overall. Implications are: (1) without language, even willing cooperators coordinate poorly; (...) (2) given a sufficiently homogeneous social group, language can coordinate cooperation in the face of opportunities for anonymous defection; (3) coordination therefore depends not on merely a general propensity to cooperate but on the overlap of social identities, which are always costly to acquire and maintain. So far as linguistic variation establishes how much social identities overlap, natural-language “cheap talk” is self-insuring, suggesting that linguistic variation is itself adaptive. (shrink)