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Inductive Game Theory: Discrimination and Prejudices

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  • Mamoru Kaneko
  • Akihiko Matsui

Abstract

This paper proposes a new theory, which we call inductive game theory. In this theory, the individual player does not have a priori knowledge of the structure of the game that he plays repeatedly. Instead, he accumulates experiences induced by occasional random trials in the repeated play. A stationary state is required to be stable against intentional deviations based on the player's experiences, and then it turns out to be a Nash equilibrium. The main part of the paper is the consideration of possible individual views of the society based on individual experiences. This view is defined to be a model of the society which the player builds from his experiences. Coherency with these experiences and a condition called rationalization are required for a model. As concrete objects of the theory, this paper analyzes the phenomena of discrimination and prejudice. The development of the new theory is undertaken by contrasting its observational and behavioral aspects with mental and judgmental aspects. The relationship between discrimination and prejudice will emerge in this dichotomous consideration.

Suggested Citation

  • Mamoru Kaneko & Akihiko Matsui, 1999. "Inductive Game Theory: Discrimination and Prejudices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 101-137, January.
    • Handle: RePEc:bla:jpbect:v:1:y:1999:i:1:p:101-137
    DOI: 10.1111/1097-3923.00005
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    Cited by:

    1. Lippert, Steffen & Spagnolo, Giancarlo, 2011. "Networks of relations and Word-of-Mouth Communication," Games and Economic Behavior, Elsevier, vol. 72(1), pages 202-217, May.
    2. Mamoru Kaneko, 2020. "Expected utility theory with probability grids and preference formation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 723-764, October.
    3. Mira Frick & Ryota Iijima & Yuhta Ishii, 2018. "Dispersed Behavior and Perceptions in Assortative Societies," Cowles Foundation Discussion Papers 2128R2, Cowles Foundation for Research in Economics, Yale University, revised Oct 2021.
    4. Kaneko, Mamoru & Mitra, Aniruddha, 2011. "Discrimination in festival games with limited observability and accessibility," Mathematical Social Sciences, Elsevier, vol. 62(1), pages 34-45, July.
    5. Masao Ogaki, 2022. "Economics of the community mechanism," The Japanese Economic Review, Springer, vol. 73(3), pages 433-457, July.
    6. Katz, Kimberly & Matsui, Akihiko, 2004. "When trade requires coordination," Journal of the Japanese and International Economies, Elsevier, vol. 18(3), pages 440-461, September.
    7. Mira Frick & Ryota Iijima & Yuhta Ishii, 2018. "Dispersed Behavior and Perceptions in Assortative Societies," Cowles Foundation Discussion Papers 2128R3, Cowles Foundation for Research in Economics, Yale University, revised Jun 2022.
    8. Kaneko, Mamoru & Kline, J. Jude, 2008. "Inductive game theory: A basic scenario," Journal of Mathematical Economics, Elsevier, vol. 44(12), pages 1332-1363, December.
    9. Pan Addison & Fabrizi Simona & Lippert Steffen, 2018. "Non-Congruent Views about Signal Precision in Collective Decisions," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 18(2), pages 1-24, July.
    10. Mamoru Kaneko, 2019. "Expected Utility Theory with Probability Grids and Preference Formation," Working Papers 1902, Waseda University, Faculty of Political Science and Economics.
    11. Mamoru Kaneko & J. Kline, 2013. "Partial memories, inductively derived views, and their interactions with behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(1), pages 27-59, May.
    12. Mamoru Kaneko, 2013. "Symposium: logic and economics—interactions between subjective thinking and objective worlds," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(1), pages 1-8, May.
    13. J. Jude Kline & Thierry Lavendhomme & Samuel Waltener, 2019. "From memories to inductively derived views: a constructive approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(2), pages 403-420, September.
    14. Mamoru Kaneko & J. Jude Kline, 2015. "Understanding the Other Through Social Roles," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-31.

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