We consider the potential contribution of economics to an interdisciplinary research partnership between sociology and neuroscience. We correct a misunderstanding in previous literature over the understanding of humans as ‘social animals’, which has in turn led to misidentification of the potential relevance of game theory and the economics of networks to the social neuroscience project. Specifically, it has been suggested that these can be used to model mindreading. We argue that mindreading is at best a derivative and special basis for (...) social coordination, whereas the general and pervasive phenomenon on which it depends is mindshaping. We then outline the foundations of Conditional Game Theory as a mathematical model of mindshaping, which extends game theory without displacing its classic solution concepts, and which exploits economists’ experience in modeling networks. (shrink)

The study of social norms sprawls across all of the social sciences but the the concept lacks a unified conception and formal theory. We synthesize an account that can be applied generally, at the social scale of analysis, and can be applied to empirical evidence generated in field and lab experiments. More specifically, we provide new analysis on representing norms for application in empirical political science, and in parts of economics that do not follow the recent trend among some behavioral (...) economists to build models of the cognitive and motivational states of individuals taken “one at a time”. Foundational sources for our project are Bicchieri (2006, 2017), Kuran (1995), and Stirling (2012, 2016). From Bicchieri take that a norm exists in a social structure when a significant networked subset of individuals share descriptive and injunctive expectations that it regulates their interactions. From Kuran we take the insight that prevailing norms may come to be widely disliked by participants in networks but survive because norm suppress public displays of disenchantment. From Stirling we apply conditional game theory (CGT) to provide the technical resources for building our model of a norm-regulated social interaction. The example we use is a multi-player Investment/Trust Game. (shrink)

In the debate between simple inference heuristics and complex decision mechanisms, we take a position squarely in the middle. A decision making process that extends to both naturalistic and novel settings should extend beyond the confines of this debate; both simple heuristics and complex mechanisms are cognitive skills adapted to and appropriate for some circumstances but not for others. Rather than ask `Which skill is better?'' it is often more important to ask `When is a skill justified?'' The selection and (...) application of an appropriate cognitive skill for a particular problem has both costs and benefits, and therefore requires the resolution of a tradeoff. In revisiting satisficing, we observe that the essence of satisficing is tradeoff. Unlike heuristics, which derive their justification from empirical phenomena, and unlike optimal solutions, which derive their justification by an evaluation of alternatives, satisficing decision-making derives its justification by an evaluation of consequences. We formulate and present a satisficing decision paradigm that has its motivation in Herbert Simon''s work on bounded rationality. We characterize satisficing using a cost–benefit tradeoff, and generate a decision rule applicable to both designing intelligent machines as well as describing human behavior. (shrink)

Individual rationality, or doing what is best for oneself, is a standard model used to explain and predict human behavior, and von Neumann–Morgenstern game theory is the classical mathematical formalization of this theory in multiple-agent settings. Individual rationality, however, is an inadequate model for the synthesis of artificial social systems where cooperation is essential, since it does not permit the accommodation of group interests other than as aggregations of individual interests. Satisficing game theory is based upon a well-defined notion of (...) being good enough, and does accommodate group as well as individual interests through the use of conditional preference relationships, whereby a decision maker is able to adjust its preferences as a function of the preferences, and not just the options, of others. This new theory is offered as an alternative paradigm to construct artificial societies that are capable of complex behavior that goes beyond exclusive self interest. (shrink)

Satisficing is a central concept in both individual and social multiagent decision making. In this paper we first extend the notion of satisficing by formally modeling the tradeoff between costs and decision failure. Second, we extend this notion of “neo”-satisficing into the context of social or multiagent decision making and interaction, and model the social conditioning of preferences in a satisficing framework.

When acting in social contexts, we are often able to voluntarily coordinate our choices with one another. It has been suggested that this ability relies on the adoption of preferences that transcend those of the individuals involved in the social interaction. Conditional game theory provides a formal framework that facilitates the study of coordinated rational choice in a way that disentangles the concepts of individual preference and group agency. We argue that these concepts are complementary: individual preferences are formed in (...) a social context and groups coordinate as socially influenced preferences interact. In particular, we show that if agents can engage in conditional reasoning and can define their preferences in the form of hypothetical propositions, group-level coordination can be grounded only on the preference of individuals. (shrink)