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The Ontology of Schelling's "Theory of Interdependent Decisions"

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  • Lauren Larrouy

    (University of Nice Sophia Antipolis, France
    GREDEG CNRS)

Abstract

The present paper offers a methodological contribution on Schelling's insight into game theory drawing both on his proposition for a "reorientation of game theory" and his dynamic models of residential segregation. It aims to show how these respective works exhibit coherence in Schelling's thinking. It is often claimed that Schelling criticizes standard game theory without proposing any conceptual solution. To the contrary, I assert that the methodological constraints Schelling identifies in standard game theory support the proposition of a new type of modeling in the dynamic models of residential segregation: the first agent based modeling. I argue that the agent-based models provide a theoretic ground to formalize the methodological innovations proposed in his “reorientation of game theory.” To understand such a claim I stress the social ontology underlined in Schelling's conception of a "theory of interdependent decisions."

Suggested Citation

  • Lauren Larrouy, 2015. "The Ontology of Schelling's "Theory of Interdependent Decisions"," GREDEG Working Papers 2015-38, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2015-38
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    File URL: http://195.220.190.85/GREDEG-WP-2015-38.pdf
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    References listed on IDEAS

    as
    1. N. Emrah Aydinonat, 2007. "Models, conjectures and exploration: an analysis of Schelling's checkerboard model of residential segregation," Journal of Economic Methodology, Taylor & Francis Journals, vol. 14(4), pages 429-454.
    2. Bacharach, Michael, 1999. "Interactive team reasoning: A contribution to the theory of co-operation," Research in Economics, Elsevier, vol. 53(2), pages 117-147, June.
    3. N. Emrah Aydinonat, 2005. "An interview with Thomas C. Schelling: Interpretation of game theory and the checkerboard model," Economics Bulletin, AccessEcon, vol. 2(2), pages 1-7.
    4. Nicola Giocoli, 2003. "Modeling Rational Agents," Books, Edward Elgar Publishing, number 2585.
    5. Sugden, Robert, 1991. "Rational Choice: A Survey of Contributions from Economics and Philosophy," Economic Journal, Royal Economic Society, vol. 101(407), pages 751-785, July.
    6. Alessandro Innocenti, 2007. "Player heterogeneity and empiricism in Schelling," Journal of Economic Methodology, Taylor & Francis Journals, vol. 14(4), pages 409-428.
    7. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
    8. Searle, John R., 2005. "What is an institution?," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 1-22, June.
    9. Joshua M. Epstein & Robert L. Axtell, 1996. "Growing Artificial Societies: Social Science from the Bottom Up," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550253, December.
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    Cited by:

    1. Lauren Larrouy & Guilhem Lecouteux, 2018. "Choosing in a Large World: The Role of Focal Points as a Mindshaping Device," Working Papers halshs-01923244, HAL.

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    More about this item

    Keywords

    Schelling; ontology; game theory; residential segregation; agent-based models;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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