Reflections on Equilibrium - Ideal Rationality and Analytic Decomposition of Games
AbstractTaking seriously the philosophical foundations of classical strategic theories of choice-making we scrutinize to what extent planning on equilibrium strategies can be justified "eductively" among rational players and how this can be utilized to analyze games by their "game-like" sub-structures, in particular by their sub-games in the extensive and by their cells in (agent) normal form. "Material" principles of rational choice and "formal" methodological requirements of consistent theory formation are considered and it is claimed that there can be consistent “conventions of rationality”. Which of the possible conventions will prevail and define rationality may depend though on which of the theories of ideal rationality will be absorbed among rational agents. Once established "conventional rationality" can lead to unique solutions for strategic games.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2003-08.
Length: 45 pages
Date of creation:
Date of revision:
Other versions of this item:
- Siegfried Berninghaus & Werner Güth & Hartmut Kliemt, 2003. "Reflections on Equilibrium: Ideal Rationality and Analytic Decomposition of Games," Homo Oeconomicus, Institute of SocioEconomics, vol. 20, pages 257-302.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heumen, R. van & Peleg, B. & Tijs, S.H. & Borm, P.E.M., 1996. "Axiomatic characterizations of solutions for Bayesian games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-72930, Tilburg University.
- Güth, Werner & Kliemt, Hartmut, 2001. "From full to bounded rationality: The limits of unlimited rationality," SFB 373 Discussion Papers 2001,12, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Rustem, Berc & Velupillai, Kumaraswamy, 1990. "Rationality, computability, and complexity," Journal of Economic Dynamics and Control, Elsevier, vol. 14(2), pages 419-432, May.
- Peleg, B. & Tijs, S.H., 1996.
"The consistency principle for games in strategic form,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-72911, Tilburg University.
- Peleg, Bezalel & Tijs, Stef, 1996. "The Consistency Principle for Games in Strategic Forms," International Journal of Game Theory, Springer, vol. 25(1), pages 13-34.
- Peleg, B. & Tijs, S.H., 1993. "The consistency principle for games in strategic form," Discussion Paper 1993-6, Tilburg University, Center for Economic Research.
- Peleg, B. & Tijs, S., 1993. "The Consistency Principle for Games in Strategic Form," Papers 9306, Tilburg - Center for Economic Research.
- Rubinstein, Ariel, 1989. "The Electronic Mail Game: Strategic Behavior under "Almost Common Knowledge."," American Economic Review, American Economic Association, vol. 79(3), pages 385-91, June.
- Aumann, Robert J, 1987.
"Correlated Equilibrium as an Expression of Bayesian Rationality,"
Econometric Society, vol. 55(1), pages 1-18, January.
- Robert J. Aumann, 2010. "Correlated Equilibrium as an expression of Bayesian Rationality," Levine's Working Paper Archive 661465000000000377, David K. Levine.
- R. Aumann, 2010. "Correlated Equilibrium as an expression of Bayesian Rationality," Levine's Bibliography 513, UCLA Department of Economics.
- Martin Dufwenberg & Henk Norde & Hans Reijnierse & Stef Tijs, 2001.
"The consistency principle for set-valued solutions and a new direction for normative game theory,"
Springer, vol. 54(1), pages 119-131, October.
- Dufwenberg, M. & Norde, H.W. & Reijnierse, J.H. & Tijs, S.H., 2001. "The consistency principle for set-valued solutions and a new direction for normative game theory," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86781, Tilburg University.
- Dufwenberg, M. & Norde, H. & Reijnierse, H. & Tijs, S., 1998. "The Consistency Principle for Set-Valued Solutions and a New Direction for Normative Game Theory," Papers 1998-11, Uppsala - Working Paper Series.
- Dufwenberg, Martin & Norde, Henk & Reijnierse, Hans & Tijs, Stef, 1998. "The Consistency Principle for Set-valued Solutions and a New Direction for Normative Game Theory," Working Paper Series 1998:11, Uppsala University, Department of Economics.
- Canning, David, 1992. "Rationality, Computability, and Nash Equilibrium," Econometrica, Econometric Society, vol. 60(4), pages 877-88, July.
- Harsanyi, John C., 1994.
"Games with Incomplete Information,"
Nobel Prize in Economics documents
1994-1, Nobel Prize Committee.
- Werner G, th & Bezalel Peleg, 2001. "When will payoff maximization survive? An indirect evolutionary analysis," Journal of Evolutionary Economics, Springer, vol. 11(5), pages 479-499.
- Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-50, July.
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
- Aumann, Robert J., 1995. "Backward induction and common knowledge of rationality," Games and Economic Behavior, Elsevier, vol. 8(1), pages 6-19.
- Aumann, Robert & Brandenburger, Adam, 1995. "Epistemic Conditions for Nash Equilibrium," Econometrica, Econometric Society, vol. 63(5), pages 1161-80, September.
- Gode, Dhananjay K & Sunder, Shyam, 1993. "Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 119-37, February.
- Norde, Henk & Potters, Jos & Reijnierse, Hans & Vermeulen, Dries, 1996.
"Equilibrium Selection and Consistency,"
Games and Economic Behavior,
Elsevier, vol. 12(2), pages 219-225, February.
- Rosenthal, Robert W., 1981. "Games of perfect information, predatory pricing and the chain-store paradox," Journal of Economic Theory, Elsevier, vol. 25(1), pages 92-100, August.
- Sugden, Robert, 1991. "Rational Choice: A Survey of Contributions from Economics and Philosophy," Economic Journal, Royal Economic Society, vol. 101(407), pages 751-85, July.
- Morgenstern, Oskar, 1972. "Descriptive, Predictive and Normative Theory," Kyklos, Wiley Blackwell, vol. 25(4), pages 699-714.
- Werner Güth & Hartmut Kliemt, 1995. "Ist die Normalform die normale Form?," Homo Oeconomicus, Institute of SocioEconomics, vol. 12, pages 155-183.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karin Richter).
If references are entirely missing, you can add them using this form.