Self-refuting theories of strategic interaction: A paradox of common knowledge

  title={Self-refuting theories of strategic interaction: A paradox of common knowledge},
  author={Cristina Bicchieri},
Game theoretic reasoning is sometimes strikingly inconsistent with observed behavior, or even with evidence from introspection. Famous examples of such inconsistency are the finitely repeated Prisoner’s Dilemma game and Selten’s Chain Store Paradox (Selten, 1978). In both cases, some plausible solutions run counter to game theoretic reasoning and appear to point to the inadequacy of the game theoretic notion of rationality in capturing important features of human behavior. These considerations… 

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It is generally agreed that rational players in a one-off Prisoner's Dilemma will defect. It is true that both players would do better if they both cooperated; but each is still acting rationally

Doxastic Paradox and Reputation Effects in Iterated Games

This paper argues that the chain-store paradox of Reinhard Selten is paradoxical in the strong sense: a logical antinomy of rational belief or subjective probability, analogous to the paradox of the Liar.

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  • A. Colman
  • Economics
    Behavioral and Brain Sciences
  • 2003
Psychological game theory, based on nonstandard assumptions, is required to solve the problems of Orthodox conceptions of rationality, which are evidently internally deficient and inadequate for explaining human interaction.

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  • A. Colman
  • Psychology
    Behavioral and Brain Sciences
  • 2003
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