Aconvention is a state in which agents coordinate their activity, not as the result of an explicit agreement, but because their expectations are aligned so that each individual believes that all will act so as to achieve coordination for mutual benefit. Since agents are said to follow a convention if they coordinate without explicit agreement, the notion raises fundamental questions: (1) Why do certain conventions remain stable over time?, and (2) How does a convention emerge in the first place? In (...) a pioneering study, Lewis (1969) addresses these questions by applyingnoncooperative game theory. Lewis defines a convention as aNash coordination equilibrium of a noncooperative game that issalient, that is, it is somehow conspicuous to the agents so that all expect one another to conform with the equilibrium. This paper presents a new game theoretic definition of conventions, which formalizes the notion of salience and which also generalizes the class of conventions Lewis discusses in his work. I define a convention as acorrelated equilibrium (Aumann 1974, 1987) satisfying apublic intentions criterion: Every agent wants his intended action to becommon knowledge. I argue that many conventions correspond to correlated equilibria that are not Nash equilibria, and that this is consistent with Lewis' general viewpoint. Finally, I argue that game theoretic characterizations of convention, such as Lewis' and my own, help to explain a convention's stability, but that a fully satisfactory account of the emergence of convention requires a theory of equilibrium selection beyond the scope of Lewis' work. (shrink)

Social conventions are those arbitrary rules and norms governing the countless behaviors all of us engage in every day without necessarily thinking about them, from shaking hands when greeting someone to driving on the right side of the road. In this book, Andrei Marmor offers a pathbreaking and comprehensive philosophical analysis of conventions and the roles they play in social life and practical reason, and in doing so challenges the dominant view of social conventions first laid out by David Lewis. (...) Marmor begins by giving a general account of the nature of conventions, explaining the differences between coordinative and constitutive conventions and between deep and surface conventions. He then applies this analysis to explain how conventions work in language, morality, and law. Marmor clearly demonstrates that many important semantic and pragmatic aspects of language assumed by many theorists to be conventional are in fact not, and that the role of conventions in the moral domain is surprisingly complex, playing mostly an auxiliary and supportive role. Importantly, he casts new light on the conventional foundations of law, arguing that the distinction between deep and surface conventions can be used to answer the prevalent objections to legal conventionalism. Social Conventions is a much-needed reappraisal of the nature of the rules that regulate virtually every aspect of human conduct. (shrink)

Mental, mathematical, and moral facts are difficult to accommodate within an overall worldview due to the peculiar kinds of properties inherent to them. In this paper I argue that a significant class of social entities also presents us with an ontological puzzle that has thus far not been addressed satisfactorily. This puzzle relates to the location of certain social entities. Where, for instance, are organizations located? Where their members are, or where their designated offices are? Organizations depend on their members (...) for their existence, but the members of an organization can be where the organization is not. The designated office of an organization, however, need be little more than a mailbox. I argue that the problem can be solved by conceptualizing the relation between social entities and non-social entities as one of constitution, a relation of unity without identity. Constituted objects have properties that cannot be reduced to properties of the constituting objects. Thus, my attempt to solve the Location Problem results in an argument in favor of a kind of non-reductive materialism about the social. (shrink)

It is a commonplace within philosophy that the ontology of institutions can be captured in terms of constitutive rules. What exactly such rules are, however, is not well understood. They are usually contrasted to regulative rules: constitutive rules (such as the rules of chess) make institutional actions possible, whereas regulative rules (such as the rules of etiquette) pertain to actions that can be performed independently of such rules. Some, however, maintain that the distinction between regulative and constitutive rules is merely (...) a linguistic one. In this paper I present the status account of constitutive rules in order to address this criticism. According to the status account constitutive rules pertain to institutional statuses and statuses are to be understood in terms of status rules. Status rules concern the enabling and constraining roles of institutions, and constitutive rules specify the preconditions that have to be met in order for them to play these roles. Even though I end up endorsing the claim that the distinction mentioned is a linguistic one, I go on to argue that there is an underlying reality that constitutive rules serve to make apparent. (shrink)

Famously Ryle imagined a visitor who has seen the colleges, departments, and libraries of a university but still wonders where the university is. The visitor fails to realize that the university consists of these organizational units. In this paper I ask what exactly the relation is between institutional entities such as universities and the entities they are composed of. I argue that the relation is constitution, and that it can be illuminated in terms of constitutive rules. The understanding of the (...) ontology of institutions that constitutive rules provide, however, is incomplete. In order to capture the practical significance of institutions, I introduce the notion of a status rule. Status rules concern the normative powers of institutions. The status account of institutions defended here is used to solve the problem of freestanding status terms: it turns out to be rather difficult to identify the entities of which statuses such as corporations and electronic money are composed. Unable to solve this problem, Searle concludes that they are created out of thin air. I criticize this claim and argue that these statuses are imposed on persons. (shrink)

Aspects of the world are normative in as much as they or their existence constitute reasons for persons, i.e. grounds which make certain beliefs, moods, emotions, intentions or actions appropriate or inappropriate. Our capacities to perceive and understand how things are, and what response is appropriate to them, and our ability to respond appropriately, make us into persons, i.e. creatures with the ability to direct their own life in accordance with their appreciation of themselves and their environment, and of the (...) reasons with which, given how they are, the world presents them. An explanation of normativity would explain the various puzzling aspects of this complex phenomenon. In particular it would explain how it is that aspects of the world can constitute reasons for cognitive, emotive, and volitional responses; how it is that we can come to realise that certain cognitive, emotional or volitional responses are appropriate in various circumstances, and inappropriate in others; and how it is that we can respond appropriately. This paper explores an aspect of the last of these questions. (shrink)

Philosophers and economists write about collective action from distinct but related points of view. This paper aims to bridge these perspectives. Economists have been concerned with rationality in a strategic context. There, problems posed by “coordination games” seem to point to a form of rational action, “team thinking,” which is not individualistic. Philosophers’ analyses of collective intention, however, sometimes reduce collective action to a set of individually instrumental actions. They do not, therefore, capture the first person plural perspective characteristic of (...) team thinking. Other analyses, problematically, depict intentions ranging over others’ actions. I offer an analysis of collective intention which avoids these problems. A collective intention aims only at causing an individual action, but its propositional content stipulates its mirroring in other minds. (shrink)

This article presents the evolutionary dynamics of three games: the Nash bargaining game, the ultimatum game, and a hybrid of the two. One might expect that the probability that some behavior evolves in an environment with two games would be near the probability that the same behavior evolves in either game alone. This is not the case for the ultimatum and Nash bargaining games. Fair behavior is more likely to evolve in a combined game than in either game taken individually. (...) This result confirms a conjecture that the complexity of our actual environment provides an explanation for the evolution of fair behavior. Key Words: evolutionary game theory • Nash bargaining game • ultimatum game • fairness. (shrink)

When I was an undergraduate in Oxford, we were taught economics almost as though it were a natural science. The subject matter of economics might be different from physics, but only in the way that the subject matter of chemistry or biology is different from physics. The actual results were presented to us as if they were scientific theories. So when we learned that savings equals investment, it was taught in the same tone of voice as one teaches that force (...) equals mass times acceleration. And we learned that rational entrepreneurs sell where marginal cost equals marginal revenue in the way that we once learned that bodies attract in a way that is directly proportional to the product of their mass and inversely proportional to the square of the distance between them. At no point was it ever suggested that the reality described by economic theory was dependent on human beliefs and other attitudes in a way that was totally unlike the reality described by physics or chemistry. Some years ago, when I published The Construction of Social Reality, I was aware that it had implications for the ontology of economics, but I was not aware that there had already been an important revival of the tradition of institutional economics. It would be an understatement to say that I welcome this interest in institutions; I enthusiastically support it. But I think that in the institutional literature there is still an unclarity about what exactly an institution is. What is the ontology, the mode of existence, of institutional reality? This article tries to add to this discussion. Economics as a subject matter, unlike physics or chemistry, is largely concerned with institutional facts. Facts about money and interest rates, exchange and employment, corporations and the balance of payments, form the very heart of the subject of economics. When Lionel Robbins, in a classic work, tells us that “Economics is a study of the disposal of scarce commodities,”2 he takes for granted a huge invisible institutional.... (shrink)

There are two general classes of social conventions: conventions of coordination, and conventions of partial conflict. In coordination problems, the interests of the agents coincide, while in partial conflict problems, some agents stand to gain only if other agents unilaterally make certain sacrifices. Lewis' (1969) pathbreaking analysis of convention in terms of game theory focuses on coordination problems, and cannot accommodate partial conflict problems. In this paper, I propose a new game-theoretic definition of convention which generalizes previous game-theoretic definitions (Lewis (...) 1969, Vanderschraaf 1995), and which can be used to characterize norms of justice in partial conflict situations. I argue that the key structural property necessary for a social arrangement to be a convention is that it be conditionally self-enforcing, in the sense that: (i) each agent has a decisive reason to follow her end of the arrangement given that she expects all to do likewise, (ii) given a different set of expectations, some agents would have had a decisive reason to deviate, and (iii) these facts are common knowledge. This leads to a definition of convention as a strict correlated equilibrium (Aumann 1974) together with appropriate common knowledge conditions. Examples are given in which it is shown how this more general account of convention can be used to analyze norms of justice as well as coordination problems. It is only a general sense of common interest; which sense all the members of the society express to one another, and which induces them to regulate their conduct by certain rules. I observe, that it will be for my interest to leave another in the possession of his goods, provided he will act in the same manner with regard to me. He is sensible of a like interest in the regulation of his conduct. When this common sense of interest is mutually express'd, and is known to both, it produces a suitable resolution and behavior. And this may properly be call'd a convention or agreement betwixt us,.. (shrink)

Cooperation and the allocation of common resources are core features of social behavior. Games idealizing both interactions have been studied separately. But here, rather than examining the dynamics of the individual games, the interactions are combined so that players first choose whether to cooperate, and then, if they jointly cooperate, they bargain over the fruits of their cooperation. It is shown that the dynamics of the combined game cannot simply be reduced to the dynamics of the individual games and that (...) both cooperation and fair division are more likely in the combined game than in the constituent games taken separately. (shrink)