## Abstract

Suppose we have a fully determinate rational choice theory that will tell each of us what to do in a particular interactive choice context and suppose each of us knows the positions of all the others. From our theory I can calculate not only what I ought to do but also what each other agent in the interaction ought rationally to do. Given knowledge of what each other agent should do, I can check whether I could in fact do better by not following the theory. If that theory yields determinate solutions, in the sense that it tells each of us explicitly what to do, these solutions must be in equilibrium for rational players who have full knowledge of the payoff structure, who have this theory, and who assume that their co-players are rational and have this theory.

## Keywords

Rational Choice Strategy Choice Rational Choice Theory Rational Player Primitive Notion## Preview

Unable to display preview. Download preview PDF.

## References

- Aumann, Robert J. 1985. “What Is Game Theory Trying to Accomplish?” Pp. 28–76 in Kenneth J. Arrow and Seppo Honkapohja, Frontiers of Economics. Oxford: Basil Blackwell.Google Scholar
- Bicchieri, Cristina. 1988. “Self-Refuting Theories of Strategic Interaction: A Paradox of Common Knowledge.” Erkenntnis 11: 1–17.Google Scholar
- Friedman, James W. 1986. Game Theory with Applications to Economics. New York: Oxford University Press.Google Scholar
- Hahn, Frank. 1984. “On the Notion of Equilibrium in Economics.” Pp. 43–71 in FrankGoogle Scholar
- Hahn, ed., Equilibrium and Macroeconomics. Cambridge, Mass.: MIT Press. Hardin, Russell. 1982. Collective Action, Baltimore, Md.: Johns Hopkins University Press.Google Scholar
- Hahn, Frank.. 1986. “Pragmatic Intuitions and Rational Choice.” Pp. 27–36 in A. Diekmann and P. Mitter, Paradoxical Effects of Social Behavior: Essays in Honor of Anatol Rapoport. Heidelberg: Physica-Verlag.Google Scholar
- Harsanyi, John C. 1977. Rational Behavior and Bargaining Equilibrium in Games and Social Situations. Cambridge: Cambridge University Press.Google Scholar
- Hahn, Frank. 1956. “Approaches to the Bargaining Problem Before and After the Theory ofGoogle Scholar
- Games: A Critical Discussion of Zeuthen’s, Hicks’, and Nash’s Theories.“ Econometrica 24: 144–57.Google Scholar
- Harsanyi, John C., and Reinhard Selten. 1988. A General Theory of Equilibrium Selection in Games. Cambridge, Mass.: MIT Press.Google Scholar
- Jeffrey, Richard C. 1983. The Logic of Decision. Chicago: University of Chicago Press, 2nd edition.Google Scholar
- Luce, R. Duncan, and Howard Raiffa. 1957. Games and Decisions. New York: Wiley. Radner, Roy. 1980. “Collusive Behavior in Noncooperative Epsilon-Equilibria of Oligopolies with Long but Finite Lives.” Journal of Economic Theory 22: 136–54.Google Scholar
- Selten, Reinhard. 1985. “Comment.” Pp. 77–85 in Kenneth J. Arrow and Seppo Honkapohja, Frontiers of Economics. Oxford: Basil Blackwell.Google Scholar
- Sorensen, Roy A. 1988. Blindspots. Oxford: Oxford University Press.Google Scholar