Explaining Games The Epistemic Programme in Game Theory
Does game theory - the mathematical theory of strategic interaction - provide genuine explanations of human behaviour? Can game theory be used in economic consultancy or other normative contexts? Explaining Games: The Epistemic Programme in Game Theory -
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SYNTHESE LIBRARY STUDIES IN EPISTEMOLOGY, LOGIC, METHODOLOGY, AND PHILOSOPHY OF SCIENCE
Editors-in-Chief: VINCENT F. HENDRICKS, University of Copenhagen, Denmark JOHN SYMONS, University of Texas at El Paso, U.S.A.
Honorary Editor: JAAKKO HINTIKKA, Boston University, U.S.A.
Editors: DIRK VAN DALEN, University of Utrecht, The Netherlands THEO A.F KUIPERS, University of Groningen, The Netherlands TEDDY SEIDENFELD, Carnegie Mellon University, U.S.A. PATRICK SUPPES, Stanford University, California, U.S.A. JAN WOLEN´SKI, Jagiellonian University, Krako´w, Poland
VOLUME 346 For further volumes: http://www.springer.com/series/6607
Explaining Games The Epistemic Programme in Game Theory
by
Boudewijn de Bruin University of Groningen, The Netherlands
123
Boudewijn de Bruin Faculty of Philosophy University of Groningen Oude Boteringestraat 52 9712 GL Groningen The Netherlands [email protected]
ISBN 978-1-4020-9905-2 e-ISBN 978-1-4020-9906-9 DOI 10.1007/978-1-4020-9906-9 Springer Dordrecht Heidelberg London New York Library of Congress Control Number: 2010931705 c Springer Science+Business Media B.V. 2010 No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)
When you collect marine animals there are certain flat worms so delicate that they are almost impossible to capture whole, for they break and tatter under the touch. You must let them ooze and crawl of their own will onto a knife blade and then lift them gently into your bottle of sea water. —John Steinbeck, Cannery Row
for my parents and my teachers
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv 1
Preliminaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 The Logic of Game Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.1 Decision Theory and Game Theory . . . . . . . . . . . . . . . . . . . . . 1.1.1.1 The Ban on Exogenous Information . . . . . . . . . . . . . 1.1.1.2 Epistemic Characterisation Theorems . . . . . . . . . . . 1.1.2 Normal Form Games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.3 Extensive Games: The One-Shot Interpretation . . . . . . . . . . . 1.1.4 Extensive Games: The Many-Moment Interpretation . . . . . . . 1.1.4.1 Identity Over Time . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 A Logic for Game Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2.1 A Logic for Normal form Games . . . . . . . . . . . . . . . . . . . . . . . 1.2.2 A Logic for Exte
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