We investigate a phenomenon which we have experienced as common when dealing with an assortment of Italian public and private institutions: people promise to exchange high-quality goods and services, but then something goes wrong and the quality delivered is lower than had been promised. While this is perceived as ‘cheating’ by outsiders, insiders seem not only to adapt to, but to rely on this outcome. They do not resent low-quality exchanges; in fact, they seem to resent high-quality ones, and are (...) inclined to put pressure on or avoid dealing with agents who deliver high quality. The equilibrium among low-quality producers relies on an unusual preference ranking which differs from that associated with the Prisoners’ Dilemma and similar games, whereby self-interested rational agents prefer to dish out low quality in exchange for high quality. While equally ‘lazy’, agents in our low-quality worlds are oddly ‘pro-social’: for the advantage of maximizing their raw self-interest, they prefer to receive low-quality goods and services, provided that they too can in exchange deliver low quality without embarrassment. They develop a set of oblique social norms to sustain their preferred equilibrium when threatened by the intrusion of high quality. We argue that high-quality collective outcomes are endangered not only by self-interested individual defectors, but by ‘cartels’ of mutually satisfied mediocrities. (shrink)

In this article, I argue that if one closely follows Hobbes' line of reasoning in Leviathan, in particular his distinction between the second and the third law of nature, and the logic of his contractarian theory, then Hobbes' state of nature is best translated into the language of game theory by an assurance game, and not by a one-shot or iterated prisoner's dilemma game, nor by an assurance dilemma game. Further, I support Hobbes' conclusion that the sovereign must always punish (...) the Foole, and even exclude her from the cooperative framework or take her life, if she defects once society is established, which is best expressed in the language of game theory by a grim strategy. That is, compared to existing game-theoretic interpretations of Hobbes, I argue that the sovereign plays a grim strategy with the citizens once society is established, and not the individuals with one another in the state of nature. (shrink)

I review the classic skeptical challenges of Foole in Leviathan and the Lydian Shepherd in Republic against the prudential rationality of justice. Attempts to meet these challenges contribute to the reconciliation project (Kavka in Hobbesian moral and political theory , 1986 ) that tries to establish that morality is compatible with rational prudence. I present a new Invisible Foole challenge against the prudential rationality of justice. Like the Lydian Shepherd, the Invisible Foole can violate justice offensively (Kavka, Hobbesian moral and (...) political theory , 1986 ; Law and Philosophy , 14:5–34, 1995 ) without harming his reputation for justice. And like the Foole, the Invisible Foole dismisses the possibility that being just preserves goods intrinsic to justice, and will be just only if he fears that others will punish his injustice by withholding the external goods like labor and material goods that he would otherwise receive for their performance in covenants. I argue that given a plausible folk-theorem interpretation , Hobbes’ response to the Foole’s challenge is inconclusive, and depends crucially upon common knowledge assumptions that may or may not obtain in actual societies. I present two analogous folk-theorem arguments in response to the Invisible Foole’s challenge, one using the idea that the Invisible Foole’s power of concealment might be transitory, and the other using the idea that members of society might stop performing in covenants with anyone, thus punishing the Invisible Foole indirectly, if the Invisible Foole commits sufficiently many injustices. (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)

In this paper we use an experimental approach to investigate how linguistic conventions can emerge in a society without explicit agreement. As a starting point we consider the signaling game introduced by Lewis. We find that in experimental settings, small groups can quickly develop conventions of signal meaning in these games. We also investigate versions of the game where the theoretical literature indicates that meaning will be less likely to arise---when there are more than two states for actors to transfer (...) meaning about and when some states are more likely than others. In these cases, we find that actors are less likely to arrive at strategies where signals have clear conventional meaning. We conclude with a proposal for extending the use of the methodology of experimental economics in experimental philosophy. (shrink)

Axelrod (The evolution of cooperation, 1984) and others explain how cooperation can emerge in repeated 2-person prisoner’s dilemmas. But in public good games with anonymous contributions, we expect a breakdown of cooperation because direct reciprocity fails. However, if agents are situated in a social network determining which agents interact, and if they can influence the network, then cooperation can be a viable strategy. Social networks are modelled as graphs. Agents play public good games with their neighbours. After each game, they (...) can terminate connections to others, and new connections are created. Cooperative agents do well because they manage to cluster with cooperators and avoid defectors. Computer simulations demonstrate that group formation and exclusion are powerful mechanisms to promote cooperation in dilemma situations. This explains why social dilemmas can often be solved if agents can choose with whom they interact. (shrink)

Game theory is the systematic study of interdependent rational choice. It should be distinguished from decision theory, the systematic study of individual (practical and epistemic) choice in parametric contexts (i.e., where the agent is choosing or deliberating independently of other agents). Decision theory has several applications to ethics (see Dreier 2004; Mele and Rawlings 2004). Game theory may be used to explain, to predict, and to evaluate human behavior in contexts where the outcome of action depends on what several agents (...) choose to do and where their choices depend on what others choose to do. (See the entry on game theory) Game theory consequently is relevant to ethics, and it is used in moral and political philosophy in a variety of ways. We shall concentrate on the influence and use of game theory in ethics and those parts of political theory involving norms or principles of justice, ignoring questions about political and legal institutions on the one hand and questions about issues dealing with moral virtues on the other. (shrink)

Locke rejected anarchism. Locke defended the universal necessity of political governments on the grounds that the state of nature will occasionally generate the inconveniences of war. The standard interpretation of Locke identifies three main causes of war in the state of nature: the lack of a common judge, moral disagreement over the law of nature, and self-love. In this paper, I argue that the combination of these three factors does not guarantee that war will occur in every plausible scenarios of (...) Locke’s state of nature. Instead, in order for war to occur at least sometimes in every plausible scenario of Locke’s state of nature, there has to be some sort of epistemic deficit. In this paper, I show via the tools of modern game theory, how Locke’s state of nature may occasionally generate war by two kinds of epistemic problems implied by Locke’s own epistemology: disagreements in subjective probabilities, and uncertainty in other people’s moral motivation to use force to enforce the law of nature. The fact that war occurs primarily because of such epistemic problems suggests a role for a very limited form of government; namely, the ultra-ultra-minimal state, whose role is confined to solving such epistemic problems. (shrink)

The “welcome return” to “substantive political philosophy” that Rawls'sA Theory of Justicewas said to herald has resulted in forty years of proposals seeking to show that philosophical reflection leads to the demonstrable truth of almost every and any conceivable view of the justice of property rights. Select any view—from the justice of unregulated capitalist markets to the most extreme forms of egalitarianism—and one will find that some philosophers have proclaimed that rational reflection uniquely leads to its justice. This is, I (...) believe, a sort of ideological thinking masquerading as philosophizing. In this paper, using some tools from game theory as well as experimental findings, I seek to sketch a non-ideological approach to the question of the justification of property rights. On this approach the aim of political philosophy is, first and foremost, to reflect on whether our social rules of property are within the “optimal eligible set” of rules acceptable to all. (shrink)