Rationality and Commitment This page intentionally left blank Rationality and Commitment Edited by Fabienne Peter and Hans Bernhard Schmid OXFORD UNIVERSITY PRESS · OXFORD 1 GreatClarendonStreet,Oxfordox26dp OxfordUniversityPressisadepartmentoftheUniversityofOxford. ItfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship, andeducationbypublishingworldwidein Oxford NewYork Auckland CapeTown DaresSalaam HongKong Karachi KualaLumpur Madrid Melbourne MexicoCity Nairobi NewDelhi Shanghai Taipei Toronto Withofficesin Argentina Austria Brazil Chile CzechRepublic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore SouthKorea Switzerland Thailand Turkey Ukraine Vietnam OxfordisaregisteredtrademarkofOxfordUniversityPress intheUKandincertainothercountries PublishedintheUnitedStates byOxfordUniversityPressInc.,NewYork FabiennePeterandHansBernhardSchmid,2007 Themoralrightsoftheauthorshavebeenasserted DatabaserightOxfordUniversityPress(maker) Firstpublished2007 Allrightsreserved.Nopartofthispublicationmaybereproduced, storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans, withoutthepriorpermissioninwritingofOxfordUniversityPress, orasexpresslypermittedbylaw,orundertermsagreedwiththeappropriate reprographicsrightsorganization.Enquiriesconcerningreproduction outsidethescopeoftheaboveshouldbesenttotheRightsDepartment, OxfordUniversityPress,attheaddressabove Youmustnotcirculatethisbookinanyotherbindingorcover andyoumustimposethesameconditiononanyacquirer BritishLibraryCataloguinginPublicationData Dataavailable LibraryofCongressCataloginginPublicationData Dataavailable TypesetbyLaserwordsPrivateLimited,Chennai,India PrintedinGreatBritain onacid-freepaperby BiddlesLtd.,King’sLynn,Norfolk ISBN978–0–19–928726–0 10 9 8 7 6 5 4 3 2 1 Contents List of Figures, Schemata, and Tables vii List of Contributors ix Acknowledgments xii Introduction 1 Rational Fools, Rational Commitments 3 FabiennePeter and Hans Bernhard Schmid Part I. Committed Action 15 1. Why Exactly is Commitment Important for Rationality? 17 Amartya Sen 2. Construing Sen on Commitment 28 Philip Pettit 3. Sympathy, Commitment, and Preference 49 Daniel M. Hausman Part II. Rethinking Rationality 71 4. Instrumental Rationality versus Practical Reason: Desires, Ends, and Commitment 73 Herlinde Pauer-Studer 5. The Grammar of Rationality 105 Geoffrey Brennan 6. The Rationality of Rational Fools: The Role of Commitments, Persons, and Agents in Rational Choice Modelling 124 Werner Gu¨th and Hartmut Kliemt 7. Rational Self-Commitment 150 Bruno Verbeek vi contents 8. Rationality and Commitment in Voluntary Cooperation: Insights from Experimental Economics 175 Simon Ga¨chter and Christian Tho¨ni Part III. Commitment, Intentions, and Identity 209 9. Beyond Self-Goal Choice: Amartya Sen’s Analysis of the Structure of Commitment and the Role of Shared Desires 211 HansBernhard Schmid 10. Cooperation and the We-Perspective 227 Raimo Tuomela 11. Collective Intentions, Commitment, and Collective Action Problems 258 Margaret Gilbert 12. Theories of Team Agency 280 Natalie Gold and Robert Sugden 13. Identity and Commitment: Sen’s Fourth Aspect of the Self 313 John B. Davis Comment 337 Rational Choice: Discipline, Brand Name, and Substance 339 Amartya Sen Index 363 List of Figures, Schemata, and Tables Figures 3.1 Prisoner’sDilemma;gameform 63 3.2 Prisoner’sDilemma;game 63 3.3 Prisoner’sDilemma;gameform 68 6.1 Thesimpletrustgame 128 6.2 Relativeandabsolutecommitments 130 6.3 Takeitorleaveitinstrategicform 130 6.4 Takeitorleaveitinextensiveform 131 6.5 Modifiedtakeitorleaveitgame 131 6.6 Anembeddedbattleofthesexes 134 6.7 SequentialPrisoner’sDilemma 137 6.8 StrategicformofsequentialPrisoner’sDilemma 137 6.9 StandardPrisoner’sDilemmawithpowerto 138 committostrategiesasprogrammes 7.1 Decisiontree 164 8.1 ThePrisoner’sDilemmagame 176 8.2 Averagecontributionfunctionoftypes 186 freerider,conditionalcooperator,triangle contributor,and‘others’ 8.3 Averageactualcontributionsandpredicted 191 contributions 8.4 Averagecontributionsovertenperiods 193 8.5 Cooperationpatternsintheabsenceand 196 presenceofpunishment 10.1 Collectivegooddilemma 242 10.2 Prisoner’sDilemma 243 12.1 ThePrisoner’sDilemma 281 12.2 Hi-Lo 283 12.3 APrisoner’sDilemmawithtransformedpayoffs 293 12.4 Hawk–Dove 305 viii list of figures, schemata, and tables Schemata 12.1 Individualrationality 286 12.2 Collectiverationality 287 12.3 Simpleteamreasoning(fromagroupviewpoint) 288 12.4 Simpleteamreasoning(fromanindividual 289 viewpoint) 12.5 Restrictedteamreasoning 295 12.6 Circumspectteamreasoning 297 12.7 Mutuallyassuredteamreasoning 303 Tables 6.1 Rationalchoiceasmaximizationand 144 non-maximization 8.1 Overviewofthedistributionoftypesin 188 Prisoner’sDilemmagamesandPublicGoods games List of Contributors Geoffrey Brennan is Professor of Social and Political Theory in the Research SchoolofSocialSciencesattheAustralianNationalUniversityandholdsaregular visitingprofessorshipjointlyatUNC-ChapelHill(inthePhilosophyDepartment) and Duke University (in the Political Science Department). He is author with Nobel Laureate James Buchanan of The Reason of Rules (1985) and The Power to Tax (1980) and most recently of The Economy of Esteem (2004) with Philip Pettit. John B.Davis is Professor of History and Philosophy of Economics at the University of Amsterdam and Professor of Economics at Marquette Universi- ty. He is author of Keynes’s Philosophical Development (1994) and The Theory of the Individual in Economics (2003), is the former editor of the Review of Social Economy, and currently co-editor of the Journal of Economic Methodolo- gy. Simon Ga¨chterisProfessor ofthe PsychologyofEconomicDecision Makingat the School of Economics of the University of Nottingham (UK). His research is in the area of behavioral and experimental economics. His main publications are inNature,AmericanEconomicReview,andEconometrica. MargaretGilbertholdstheMeldenChairinMoralPhilosophyattheUniversity of California, Irvine. Her books include On Social Facts (1989), Living Together: Rationality,Sociality,andCommitment(1996),SocialityandResponsibility:NewEssays in Plural Subject Theory (2000), and A Theory of Political Obligation: Membership, Commitment,andtheBondsofSociety(2006). Natalie Gold is a Lecturer in Philosophy at the University of Edinburgh. She investigatesindividualandcollectivedecision-makingusingmethodsfromavariety ofdisciplines,includingeconomics,philosophy,andpsychology.Inparticularshe isinterested in the incorporationof developmentsin cognitivescienceinto social scientifictheories. WernerGu¨thiscurrentlyDirectoroftheStrategicInteractionGroupattheMax Planck Institute of Economics in Jena. He has published widely on a number of subjects, including game theory, experimental economics, social psychology, and philosophywhich form his mainresearch interests to the present day.Among his
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