This is the classic work upon which modern-day game theory is based. What began as a modest proposal that a mathematician and an economist write a short paper together blossomed, when Princeton University Press published Theory of Games and Economic Behavior. In it, John von Neumann and Oskar Morgenstern conceived a groundbreaking mathematical theory of economic and social organization, based on a theory of games of strategy. Not only would this revolutionize economics, but the entirely new field of scientific inquiry (...) it yielded--game theory--has since been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations. And it is today established throughout both the social sciences and a wide range of other sciences. (shrink)

Some people commonly know a proposition just in case they all know it, they all know that they all know it, they all know that they all know that they all know it, and so on. They commonly believe a proposition just in case they all believe it, they all believe that they all believe it, they all believe that they all believe that they all believe it, and so on. A long tradition in economic theory, theoretical computer science, linguistics (...) and philosophy has held that people have some approximation of common knowledge or common belief in a range of circumstances, for example, when they are looking at an object together, or when they have just discussed something explicitly in conversation. In this paper, I argue that people do not have any approximation of common knowledge or common belief in these circumstances. The argument suggests that people never have any approximation of common knowledge or common belief. (shrink)

The coordinated attack scenario and the electronic mail game are two paradoxes of common knowledge. In simple mathematical models of these scenarios, the agents represented by the models can coordinate only if they have common knowledge that they will. As a result, the models predict that the agents will not coordinate in situations where it would be rational to coordinate. I argue that we should resolve this conflict between the models and facts about what it would be rational to do (...) by rejecting common knowledge assumptions implicit in the models. I focus on the assumption that the agents have common knowledge that they are rational, and provide models to show that denying this assumption suffices for a resolution of the paradoxes. I describe how my resolution of the paradoxes fits into a general story about the relationship between rationality in situations involving a single agent and rationality in situations involving many agents. (shrink)

This essay develops a joint theory of rational (all-or-nothing) belief and degrees of belief. The theory is based on three assumptions: the logical closure of rational belief; the axioms of probability for rational degrees of belief; and the so-called Lockean thesis, in which the concepts of rational belief and rational degree of belief figure simultaneously. In spite of what is commonly believed, this essay will show that this combination of principles is satisfiable (and indeed nontrivially so) and that the principles (...) are jointly satisfied if and only if rational belief is equivalent to the assignment of a stably high rational degree of belief. Although the logical closure of belief and the Lockean thesis are attractive postulates in themselves, initially this may seem like a formal “curiosity”; however, as will be argued in the rest of the essay, a very reasonable theory of rational belief can be built around these principles that is not ad hoc and that has various philosophical features that are plausible independently. In particular, this essay shows that the theory allows for a solution to the Lottery Paradox, and it has nice applications to formal epistemology. The price that is to be paid for this theory is a strong dependency of belief on the context, where a context involves both the agent's degree of belief function and the partitioning or individuation of the underlying possibilities. But as this essay argues, that price seems to be affordable. (shrink)

This book offers original accounts of a number of central social phenomena, many of which have received little if any prior philosophical attention. These phenomena include social groups, group languages, acting together, collective belief, mutual recognition, and social convention. In the course of developing her analyses Gilbert discusses the work of Emile Durkheim, Georg Simmel, Max Weber, David Lewis, among others.

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)

It is advisable to treat some sorts of discourse about fiction with the aid of an intensional operator "in such-And-Such fiction...." the operator may appear either explicitly or tacitly. It may be analyzed in terms of similarity of worlds, As follows: "in the fiction f, A" means that a is true in those of the worlds where f is told as known fact rather than fiction that differ least from our world, Or from the belief worlds of the community in (...) which the fiction originated. (shrink)

A key to modern studies of 18th century Western philosophy, the Treatise considers numerous classic philosophical issues, including causation, existence, freedom and necessity and morality. This abridged edition has an introduction which explain's Hume's thought and places it in the context of its times.

Ordinary common knowledge is formally expressed by strong probabilistic common belief. How strong exactly? The question can be answered by drawing from the similar equivalence, recently explored, between plain and probabilistic individual beliefs. I argue that such a move entails that common knowledge displays a double fragility: as a description of a collective state and as a phenomenon, because it can respectively disappear as group size increases, or more worryingly as the epistemic context changes. I argue that despite this latter (...) fragility, the effects of common knowledge on action are robust. Unfortunately, this in turn leads to a third fragility, that of the concept of common knowledge, which threatens to collapse on probabilistic common belief. This also reveals a disanalogy between the individual and the collective cases. I finally pinpoint the subtle difference entailed by the two concepts, expressed in terms of the attitude towards contrary evidence or of the agents’ awareness. As a result, common knowledge can be defended as a concept, which refers to a fragile yet distinct collective attitude. (shrink)

This book explores how individual actions coordinate to produce unintended social consequences. In the past this phenomenon has been explained as the outcome of rational, self-interested individual behaviour. Professor Bicchieri shows that this is in no way a satisfying explanation. She discusses how much knowledge is needed by agents in order to coordinate successfully. If the answer is unbounded knowledge, then a whole variety of paradoxes arise. If the answer is very little knowledge, then there seems hardly any possibility of (...) attaining coordination. The solution to coordination and cooperation is for agents to learn about each other. The author concludes that rationality must be supplemented by models of learning and by an evolutionary account of how social order can persist. (shrink)

Defined and formalized several decades ago, widely used in philosophy and game theory, the concept of common knowledge is still considered as problematic, although not always for the right reasons. I suggest that the epistemic status of a group of human agents in a state of common knowledge has not been thoroughly analyzed. In particular, every existing account of common knowledge, whether formal or not, is either too strong to fit cognitively limited individuals, or too weak to adequately describe their (...) state. I provide a realistic definition of common knowledge, based on a formalization of David Lewis’ seminal account and show that it is formally equivalent to probabilistic common belief. This leads to a philosophical analysis of common knowledge which answers several common criticisms and sheds light on its nature. (shrink)

For as long as there have been theories about common knowledge, they have been exposed to a certain amount of skepticism. Recent more sophisticated arguments question whether agents can acquire common attitudes and whether they are needed in social reasoning. I argue that this skepticism arises from assumptions about practical reasoning that, considered in themselves, are at worst implausible and at best controversial. A proper approach to the acquisition of attitudes and their deployment in decision making leaves room for common (...) attitudes. Postulating them is no worse off than similar idealizations that are usefully made in logic and economics. (shrink)

Brian Skyrms constructs a theory of "dynamic deliberation" and uses it to investigate rational decision-making in cases of strategic interaction. This illuminating book will be of great interest to all those in many disciplines who use decision theory and game theory to study human behavior and thought. Skyrms begins by discussing the Bayesian theory of individual rational decision and the classical theory of games, which at first glance seem antithetical in the criteria used for determining action. In his effort to (...) show how methods for dealing with information feedback can be productively combined, the author skillfully leads us through the mazes of equilibrium selection, the Nash equilibria for normal and extensive forms, structural stability, causal decision theory, dynamic probability, the revision of beliefs, and, finally, good habits for decision. The author provides many clarifying illustrations and a handy appendix called "Deliberational Dynamics on Your Personal Computer." His powerful model has important implications for understanding the rational origins of convention and the social contract, the logic of nuclear deterrence, the theory of good habits, and the varied strategies of political and economic behavior. (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)

This paper introduces Agreement Theorems to dynamic-epistemic logic. We show first that common belief of posteriors is sufficient for agreement in epistemic-plausibility models, under common and well-founded priors. We do not restrict ourselves to the finite case, showing that in countable structures the results hold if and only if the underlying plausibility ordering is well-founded. We then show that neither well-foundedness nor common priors are expressible in the language commonly used to describe and reason about epistemic-plausibility models. The static agreement (...) result is, however, finitely derivable in an extended modal logic. We provide the full derivation. We finally consider dynamic agreement results. We show they have a counterpart in epistemic-plausibility models, and provide a new form of agreements via public announcements. (shrink)

Gupta has proposed a definition of strategic rationality cast in the framework of his revision theory of truth. His analysis, relative to a class of normal form games in which all players have a strict best reply to all other players’ strategy profiles, shows that game-theoretic concepts have revision-theoretic counterparts. We extend Gupta’s approach to deal with normal form games in which players’ may have weak best replies. We do so by adapting intuitions relative to Nash equilibrium refinements to the (...) revision-theoretic framework. We prove that there is a precise equivalence between trembling-hand perfect equilibria in two-player normal games and a revision-theoretic property. We then introduce lexicographic choice of action as a way to represent players’ expectations, which allows our analysis to reach full generality. Finally, we provide an example of the versatility of revision theory as applied to strategic interaction by formalizing a risk-and-compensation procedure of strategic choice in the revision-theoretic framework. (shrink)

The usual justification for Nash equilibrium behavior involves (at least implicitly) the assumption that it is common knowledge among the players both that the Nash equilibrium in question will be played by all and that all players are expected utility maximizers. We show that in a large class of extensive form games, the assumption that rationality is common knowledge cannot be maintained throughout the game. It is shown that these can have serious consequences on traditional extensive form solution concepts (such (...) as Selten's (1965) notion of subgame perfect Nash equilibria). (shrink)