Models of Strategic Rationality

Models of Strategic Rationality

Such matrices are assumed to be given for all (u, v) e Y. If players 1 and 2 use local strategies p, and pe, respectively, ... U is the set of information situations, C is the choice set 72 MODELS OF STRATEGIC RATIONALITY.

Author: Reinhard Selten

Publisher: Springer Science & Business Media

ISBN: 9789401577748

Category: Business & Economics

Page: 318

View: 726

The papers collected in this volume relate to game theory. They aim at the elaboration and discussion of basic con cepts, at the analysis of specific applied models and at the evaluation of experimental evidence. A game is a mathematical model of a situation where several actors with different goals are engaged in strategic inter action. Game theory explores the nature and the consequence. s of rational behavior in games. With respect to several papers in this volume, it seems to be appropriate to comment on later developments. A list of some important references is given at the end of the intro duction. References already included in the collected pa pers are not repeated here. In casual conversation colleagues sometimes observe that the author on the one hand goes to extremes in the elabora tion of the consequences of Bayesian rationality and on the other hand strongly emphasizes the limited rationality of actual decision behavior. This seeming discrepancy is also expressed in the collection presented here. The author thinks that a sharp distinction should be made between nor ~ative and descriptive game theory. This position of "methodological dualism" has been expressed in a comment to Aumann's paper "What is game theory trying to accomplish?" (Aumann, 1985, Selten 1985) Normative game theory has the important task to explore the nature and the consequences of idealized full rationality in strategic interaction. This requires a thorough discuss ion of first principles. Empirical arguments are irrelevant here.
Categories: Business & Economics

The Social Sciences and Rationality

The Social Sciences and Rationality

Even in this weaker version , it is a challenge to assumptions that individual rationality in human activity is simply parametric . When strategic rationality is present ( surely an empirical question ) , models based exclusively on ...

Author: Axel Van Den Berg

Publisher: Transaction Publishers

ISBN: 141283449X

Category: Social Science

Page: 228

View: 808

In recent decades, rational choice theory has emerged as the single most powerful, controversial claimant to provide a unified, theoretical framework for all the social sciences. In its simplest form, the theory postulates that humans are purposive beings who pursue their goals in a rational, efficient manner, seeking the greatest benefit at the lowest cost. This volume brings together prominent scholars working in several social science disciplines and the philosophy of science to debate the promise and problems of rational choice theory. As rational choice theory has spread from its home base in economics to other disciplines, it has come under fierce criticism. To its critics, the extension of the explanatory model mistakenly assumes that the logic of economic rationality can explain non-economic behavior and, at its worst, commits the ethnocentric error of imposing Western concepts of rationality on non-Western societies and cultures. This volume includes strong advocates as well as forceful critics of the rational choice approach. However, in contrast to previous debates, all the contributors share a commitment to open, constructive and knowledgeable dialogue. Well-known advocates of rational choice theory (Michael Hechter, Michael Smith, Chris Manfredi) explicitly ponder some of its serious limitations, while equally well-known critics (Ian Shapiro, Mario Bunge) strike a surprisingly conciliatory tone in contemplating its legitimate uses. Vociferous critics of neoclassical economics (Bunge) favorably discuss sociological proponents of rational choice theory while two economists who are not particularly anti-mainstream (Robin Rowley, George Grantham) critically assess the problems of such assumptions in their discipline. Philosophers (Storrs McCall) and sociologists (John Hall) alike reflect on the variable meaning of rationality in explaining social behavior. In the introduction and conclusion, the editors survey the current state of the debate and show how open, constructive dialogue enables us to move beyond hackneyed accusations and dismissals that have characterized much previous debate. Axel van den Berg is professor of sociology at McGill University in Montreal. He is the author of The Immanent Utopia: From Marxism on the State to the State of Marxism, available from Transaction. Hudson Meadwell is associate professor of political science at McGill University. He co-edited Politics and Rationality (1993).
Categories: Social Science

Strategic Behavior and Policy Choice on the U S Supreme Court

Strategic Behavior and Policy Choice on the U S  Supreme Court

Perhaps the justices feel they lack sufficient information about each other's goals and strategies to make a strategically rational decision ( although there certainly do exist formal models of strategic behavior under uncertainty ) .

Author: Thomas H. Hammond

Publisher: Stanford University Press

ISBN: 0804751463

Category: Political Science

Page: 299

View: 593

This book presents the first comprehensive model of policymaking by strategically-rational justices who pursue their own policy preferences in the Supreme Court's multi-stage decision-making process.
Categories: Political Science

Faces of the 21st Century

Faces of the 21st Century

R♥≈R (K, N) Theeconomic and power game model of rationality assumes that the rational mode of thinking, ... In the model of strategic rationality an actor makes an effort to achieve some goals (G) by choosing the means (M) and the ...


Publisher: Oficyna Wydawnicza "Rewasz"

ISBN: 9788389188731



View: 503


Airline Network Development in Europe and its Implications for Airport Planning

Airline Network Development in Europe and its Implications for Airport Planning

First, we turn to the pitfalls of long-range and strategic planning using insights from the rational planning model. The rational planning model The normative model of planning that traditionally underlies long-range planning and ...

Author: Guillaume Burghouwt

Publisher: Routledge

ISBN: 9781317183006

Category: Business & Economics

Page: 304

View: 927

The ongoing deregulation and liberalization of worldwide air transport markets confronts airport planners with an increasingly problematic context. On the one hand, the capital intensive, large-scale and complex airport investments need a detailed, long/medium-term planning of airport infrastructure. Such planning requires at least predictable traffic volumes (and traffic composition) within the planning horizon. On the other hand, airline route networks are increasingly dynamic structures that frequently show discontinuous changes. As a consequence, the much more volatile airport traffic restricts the value of detailed traffic forecasts. Volatility of airport traffic and its composition requires flexibility of airport strategies and planning processes. The book explores this dilemma through a detailed study of airline network development, airport connectivity and airport planning in the deregulated EU air transport market. The questions the book seeks to answer are: · how have airlines responded to the regime changes in EU aviation with respect to the configuration of their route networks? · what has been the impact of the reconfiguration of airline network configurations for the connectivity of EU airports? · how can airport planners and airport authorities deal with the increasingly uncertain airline network behaviour in Europe?
Categories: Business & Economics

Modeling Rationality Morality and Evolution

Modeling Rationality  Morality  and Evolution

Contexts which involve both social institutions and strategic rational choice may call for the interaction of correlated evolutionary game theory with correlated economic game theory. Positive correlation of strategies with themselves ...

Author: Peter Danielson

Publisher: Oxford University Press on Demand

ISBN: 9780195125498

Category: Philosophy

Page: 463

View: 582

This collection focuses on questions that arise when morality is considered from the perspective of recent work on rational choice and evolution. Linking questions like "Is it rational to be moral?" to the evolution of cooperation in "The Prisoners Dilemma," the book brings together new work using models from game theory, evolutionary biology, and cognitive science, as well as from philosophical analysis. Among the contributors are leading figures in these fields, including David Gauthier, Paul M. Churchland, Brian Skyrms, Ronald de Sousa, and Elliot Sober.
Categories: Philosophy

Intersubjectivity in Economics

Intersubjectivity in Economics

But conceptually, it is necessary to create a model of the human interface between the buyer and the firm. This is exactly what standard theory lacks. ... These are models of strategic rationality and of communicational rationality.

Author: Edward Fullbrook

Publisher: Routledge

ISBN: 9781134499779

Category: Business & Economics

Page: 320

View: 749

Traditional economics treats the defining subjective properties of economic agents (tastes, preferences, demands, goals and perceptions) as if they are determined independently of individual and collective relations with other agents. This collection of essays reflects the increasingly common view that economics cannot continue to disregard all economic phenomena inconsistent with this conception. The volume is especially concerned with the idea of intersubjective influences on market outcomes. A team of expert international contributors have been brought together to address the question of intersubjectivity from a variety of perspectives. Using methods of description and analysis they explore the structures and effects of concrete interdependencies between individual subjectivities engaged in economic activity, and develop conceptual and analytical tools for this task. Many of the essays are interdisciplinary in scope and in addition to economics the book should provide valuable lessons in psychology, sociology, social theory, philosophy, political science and history.
Categories: Business & Economics

Bounded rationality and heterogeneity in economic dynamic models

Bounded rationality and heterogeneity in economic dynamic models

In order to keep the structural form of our model simple, we do not model agent's choice of its expectation ... rational agents who are learning and imitating which strategy to play in a strategic environment (see e.g. Weibull, ...

Author: Pietro Dino Enrico Dindo

Publisher: Rozenberg Publishers

ISBN: 9789051709360

Category: Economic modelling

Page: 162

View: 515

Categories: Economic modelling

Integrating Ethics with Strategy

Integrating Ethics with Strategy

When a model is “adapted” in this sense, its image under the mapping decision-function-rationality (Singer, 1991a, 1994b) becomes extended, but not necessarily the model itself (Figure 10.1). Examples of the so-called “adaptations” of ...

Author: Alan E. Singer

Publisher: World Scientific

ISBN: 9789812701459

Category: Business & Economics

Page: 405

View: 263

This volume brings together 18 innovative articles on business strategy and ethics. Originally appearing in reputed journals, the articles are interrelated and focus on complex linkages between ethics and strategy in business.The first of its three sections discusses various frameworks developed by the author that explicitly integrate strategy with ethics. The second section comprises articles placing business ethics relative to management-science models and systems thinking. The final section applies some of the foregoing ideas to strategic and social issues, including poverty alleviation, corruption reduction, political divestment decisions, intellectual property rights, and pharmaceutical industrial strategy.
Categories: Business & Economics

Rationality and Explanation in Economics

Rationality and Explanation in Economics

This demanding typeof rationalityisindeed associated with theoretical models ofgames, justas rationalitymaximization or ... nothingbut astepby stepanalysis oftherational and strategic decisions(or actions) themselves.

Author: Maurice Lagueux

Publisher: Routledge

ISBN: 9781135150334

Category: Business & Economics

Page: 304

View: 843

Economical questions indisputably occupy a central place in everyday life. In order to clarify these questions, people generally turn to those who are familiar with economics. In answering such legitimate questions, economists propose explanations which rest on a few principles among which the rationality principle is by far the most fundamental. This principle assumes that people are rational, but what is meant by this has to be specified. Rationality and Explanation in Economics claims that only a minimal kind of rationality is required to ‘animate’ economic explanations. However, such a conception of rationality faces serious objections: it is closely associated with harshly criticised methodological individualism and it is not easily disentangled from sheer irrationality. The book answers these objections and shows that the economists’ way of mobilising the concepts of maximization or of consistency for defining rationality raises more serious problems. Since the latter have encouraged various attempts to downgrade or even to dispense with the very notion of rationality, the book is largely devoted to countering arguments associated with these attempts and to show why postulating that agents are rational is still the only efficient way to explain economic phenomena as such. The author also proposes original views about the role of rationality, the meaning of methodological individualism, the relevance of the selection argument and the relation between ‘rational’ explanations of economics and explanations in natural sciences.
Categories: Business & Economics