David Lewis is widely credited with the first formulation of common knowledge and the first rigorous analysis of convention. However, common knowledge and convention entered mainstream game theory only when they were formulated, later and independently, by other theorists. As a result, some of the most distinctive and valuable features of Lewis' game theory have been overlooked. We re-examine this theory by reconstructing key parts in a more formal way, extending it, and showing how it differs from more recent game (...) theory. In contrast to current theories of common knowledge, Lewis' theory is based on an explicit analysis of the modes of reasoning that are accessible to rational individuals and so can be used to analyse the genesis of common knowledge. Lewis' analysis of convention emphasises the role of inductive reasoning and of salience in the maintenance of conventions over time. Footnotes Earlier versions of this paper were presented at the 13th Amsterdam Colloquium at the University of Amsterdam, at a workshop on social norms at Wissenschaftskolleg zu Berlin, and at seminars at Tilburg University and the University of Bristol. We are grateful for comments from participants at those meetings, from two anonymous referees, and from Michael Bacharach, Nick Bardsley, Cristina Bicchieri, Luc Bovens, Simon Grant, David McCarthy, Shepley Orr, Brian Skyrms, Peter Vanderschraaf, Peter Wakker and Jörgen Weibull. Robert Sugden's work was supported by the Leverhulme Trust. (shrink)

Invoking its social function can explain why we find a certain functional trait or institution only if we can identify a mechanism whereby the playing of the function connects with the explanandum. That is the main claim in the missing-mechanism critique of functionalism. Is it correct? Yes, if functional explanation is meant to make sense of the actual presence of the trait or institution. No, if it is meant to make sense of why the trait or institution is resilient: why (...) we can rely on it to survive various contingencies. The lesson? Social functionalism should be taken, and may have been taken by its founders, as a programme for explaining resilience. (shrink)

This paper investigates the epistemic assumptions that David Lewis makes in his account of social conventions. In particular, I focus on the assumption that the agents have common knowledge of the convention to which they are parties. While evolutionary analyses show that the common knowledge assumption is unnecessary in certain classes of games, Lewis’ original account (and, more recently, Cubitt and Sugden’s reconstruction) stresses the importance of including it in the definition of convention. I discuss arguments pro et contra to (...) argue that, although the assumption might be relevant to a descriptively adequate account of social convention, it is not required for its rational reconstruction. I then point out that Lewis’ account, properly speaking, is of common reason to believe, rather than of common knowledge, and argue that, in order to formalize aptly the distinction between reason to believe and belief, standard formal epistemic models need to be supplemented with so-called awareness structures. Finally, I stress that the notion of knowledge implicit in Lewis’ text involves interesting elements that cannot be captured in the standard propositional formalizations, but need the full expressive force of quantified epistemic logic. (shrink)

After sorting different structuralist claims, I argue that structural realist ideas are instantiated in the social sciences, providing both clarification of social science research and support for some components of structural realism. My main focus is on three distinct ways that the social sciences can be about structural relations—exemplified by claims about social structure, reduced form structures in causal modeling, and equilibrium explanations—and on the implication of structuralist ideas for thinking about issues concerning causal explanation and nonreductive pictures of the (...) unity of the science. †To contact the author, please write to: Department of Philosophy, 900 13th Street South, University of Alabama at Birmingham, Birmingham, AL 35294; e‐mail: [email protected]. (shrink)

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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)

Game theory is the mathematical study of strategy and conflict. It has wide applications in economics, political science, sociology, and, to some extent, in philosophy. Where rational choice theory or decision theory is concerned with individual agents facing games against nature, game theory deals with games in which all players have preference orderings over the possible outcomes of the game. This paper gives an informal introduction to the theory and a survey of applications in diverse branches of philosophy. No criticism (...) is reviewed. Game theory is shown at work in discussions about epistemological dependence, liberalism and efficiency, Hume’s concept of convention, morality and rationality, and distributive justice and egalitarianism. A guide to the literature provides hints at applications in collective intentionality, epistemology, ethics, history of philosophy, logic, philosophy of language, and political philosophy. (shrink)

Do conventions need to be common knowledge in order to work? David Lewis builds this requirement into his definition of a convention. This paper explores the extent to which his approach finds support in the game theory literature. The knowledge formalism developed by Robert Aumann and others militates against Lewis’s approach, because it shows that it is almost impossible for something to become common knowledge in a large society. On the other hand, Ariel Rubinstein’s Email Game suggests that coordinated action (...) is no less hard for rational players without a common knowledge requirement. But an unnecessary simplifying assumption in the Email Game turns out to be doing all the work, and the current paper concludes that common knowledge is better excluded from a definition of the conventions that we use to regulate our daily lives. (shrink)

A person is said to be ‘trust responsive’ if she fulfils trust because she believes the truster trusts her. The experiment we report was designed to test for trust responsiveness and its robustness across payoff structures, and to discriminate it from other possible factors making for trustworthiness, including perceived kindness, perceived need and inequality aversion. We elicit the truster’s confidence that the trustee will fulfil, and the trustee’s belief about the truster’s confidence after the trustee receives evidence relevant to this. (...) We find evidence of strong trust responsiveness. We also find that perceptions of kindness and of need increase trust responsiveness, and that they do so only in conjunction with trust responsiveness. (shrink)

What motives underlie the ways humans interact socially? Are these the same for all societies? Are these part of our nature, or influenced by our environments?Over the last decade, research in experimental economics has emphatically falsified the textbook representation of Homo economicus. Literally hundreds of experiments suggest that people care not only about their own material payoffs, but also about such things as fairness, equity and reciprocity. However, this research left fundamental questions unanswered: Are such social preferences stable components of (...) human nature; or, are they modulated by economic, social and cultural environments? Until now, experimental research could not address this question because virtually all subjects had been university students, and while there are cultural differences among student populations throughout the world, these differences are small compared to the full range of human social and cultural environments. A vast amount of ethnographic and historical research suggests that people's motives are influenced by economic, social, and cultural environments, yet such methods can only yield circumstantial evidence about human motives. Combining ethnographic and experimental approaches to fill this gap, this book breaks new ground in reporting the results of a large cross-cultural study aimed at determining the sources of social preferences that underlie the diversity of human sociality. The same experiments which provided evidence for social preferences among university students were performed in fifteen small-scale societies exhibiting a wide variety of social, economic and cultural conditions by experienced field researchers who had also done long-term ethnographic field work in these societies. The findings of these experiments demonstrated that no society in which experimental behaviour is consistent with the canonical model of self-interest. Indeed, results showed that the variation in behaviour is far greater than previously thought, and that the differences between societies in market integration and the importance of cooperation explain a substantial portion of this variation, which individual-level economic and demographic variables could not. Finally, the extent to which experimental play mirrors patterns of interaction found in everyday life is traced.The book starts with a succinct but substantive introduction to the use of game theory as an analytical tool and its use in the social sciences for the rigorous testing of hypotheses about fundamental aspects of social behaviour outside artificially constructed laboratories. The results of the fifteen case studies are summarized in a suggestive chapter about the scope of the project. (shrink)