A stag hunt with signalling and mutual beliefs
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Abstract
The problem of cooperation for rational actors comprises two sub problems: the problem of the intentional object (under what description does each actor perceive the situation?) and the problem of common knowledge for finite minds (how much belief iteration is required?). I will argue that subdoxastic signalling can solve the problem of the intentional object as long as this is confined to a simple coordination problem. In a more complex environment like an assurance game signals may become unreliable. Mutual beliefs can then bolster the earlier attained equilibrium. I will first address these two problems by means of an example, in order to draw some more general lessons about combining evolutionary theory and rationality later on.
Keywords
Stag hunt game Evolutionary game theory Game theory Common knowledge ConventionNotes
Acknowledgments
Many thanks to Govert den Hartogh and Gijs van Donselaar.
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