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Challenging Standard Non-Cooperative Game Theory? From Bacharach's "Variable Frame Theory" to "Team Reasoning"

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  • Lauren Larrouy

    (University of Nice Sophia Antipolis, France
    GREDEG CNRS)

Abstract

The paper purports to stress how the two major contributions of Bacharach: "Variable Frame Theory" (VFT) and "Team Reasoning" (TR) improve Standard Non-Cooperative Game Theory in some relevant aspects which I point out. The aims are to show: (i) how Bacharach respectively justifies coordination and cooperation within these theories, and (ii) how these improvements in both VFT and TR involve a new conception of players and their rationality. I underline how coordination and cooperation rely on contextual and social determinants, which challenge and even contradict some pillars of standard individual rationality in terms of subjective expected utility, in games. Even if Bacharach's conceptual and methodological choices within these theories induce numerous difficulties, I try to show that Bacharach’s work underlines some of the implications and related problems induced by the mere foundations of standard non-cooperation game theory.

Suggested Citation

  • Lauren Larrouy, 2014. "Challenging Standard Non-Cooperative Game Theory? From Bacharach's "Variable Frame Theory" to "Team Reasoning"," GREDEG Working Papers 2014-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2014-17
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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2014-17.pdf
    File Function: First version, 2014
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    More about this item

    Keywords

    non-cooperative game theory; framing; salience; focal points; Team Reasoning; coordination; cooperation; individual rationality; social rationality; collective rationality;

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other

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