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9 - Fair’s Fair: Framing for Cooperation and Fairness

Published online by Cambridge University Press:  15 October 2020

José Luis Bermúdez
Affiliation:
Texas A & M University
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Summary

Michael Bacharach has shown how framing is a powerful tool for reconceptualizing game theory. There are different ways of framing strategic interactions. One way is to frame them individualistically, in the “I”-frame. Agents reasoning in the “I”-frame pay attention only to their own pay-offs. They seek to identify best response strategies. Best response strategies produce the best outcome for the agent, whatever other players end up doing. When each player plays a best response strategy then we have a Nash equilibrium, which is a situation where nobody can benefit from changing strategy. Nash equilibrium is the solution concept for game theory considered within the “I”-frame.

Type
Chapter
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Frame It Again
New Tools for Rational Decision-Making
, pp. 192 - 214
Publisher: Cambridge University Press
Print publication year: 2020

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