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International Journal of Game Theory

The Survival Value of Assuming Others to be Rational

Journal Article
Reference
Stennek, Johan (2000). “The Survival Value of Assuming Others to be Rational”. International Journal of Game Theory 29(2), 147–163. doi.org/10.1007/s001820070001

Author
Johan Stennek

I study the evolution of rationality, using an indirect evolutionary approach, in which nature selects a decision-making procedure, and the procedure chooses actions in matching-games. The main result is that in order for (knowledge of) rationality to survive, it is necessary and sufficient that the rational procedure respects the attraction principle. That is, when a rational agent eliminates a strictly dominated action A, he should only increase the choice probability of the actions actually dominating A and not change the choice probability of other undominated actions. The attraction principle sharpens gametheoretic predictions. Attraction effects have been verified in psychological experiments.