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Dependency Equilibria and the Casual Structure of Decision and Game Situations

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  • Wolfgang Spohn

    (Fachbereich Philosophie, Universitõt Konstanz)

Abstract

The paper attempts to rationalize cooperation in the one-shot prisoners' dilemma (PD). It starts by introducing (and preliminarily investigating)á a new kind of equilibrium (differing from Aumann's correlated equilibria) according to which the players' actions may be correlated (sect. 2). In PD the Pareto-optimal among these equilibria is joint cooperation. Since these equilibria seem to contradict causal preconceptions, the paper continues with a standard analysis of the causal structure of decision situations (sect. 3).The analysis then raises to a reflexive point of view according to which the agent integrates his own present and future decision situations into the causal picture of his situation (sect. 4). This reflexive structure is first applied to the toxin puzzle and then to Newcomb's problem, showing a way to rationalize drinking the toxin and taking only one box without assuming causal mystery /sect. 5). The latter result is finally extended to a rationalization of cooperation in PD (sect. 6).

Suggested Citation

  • Wolfgang Spohn, 2003. "Dependency Equilibria and the Casual Structure of Decision and Game Situations," Homo Oeconomicus, Institute of SocioEconomics, vol. 20, pages 195-255.
  • Handle: RePEc:hom:homoec:v:20:y:2003:p:195-255
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    Cited by:

    1. Giacomo Bonanno, 2022. "Rational Play in Extensive-Form Games," Games, MDPI, vol. 13(6), pages 1-20, October.
    2. Joseph Y. Halpern & Rafael Pass, 2018. "Game theory with translucent players," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(3), pages 949-976, September.
    3. Giacomo Bonanno, 2013. "Counterfactuals and the Prisoner?s Dilemma," Working Papers 137, University of California, Davis, Department of Economics.
    4. Giacomo Bonanno, 2021. "Rational play in games: A behavioral approach," Working Papers 344, University of California, Davis, Department of Economics.

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