Ebook: Moral Calculations: Game Theory, Logic, and Human Frailty

Are people ever rational? Consider this: You auction off a one-dollar bill to the highest bidder, but you set the rules so that the second highest bidder also has to pay the amount of his last bid, even though he gets nothing. Would people ever enter such an auction? Not only do they, but according to Martin Shubik, the game's inventor, the average winning bid (for a dollar, remember) is $3.40. Many winners report that they bid so high only because their opponent "went completely crazy." This game lies at the intersection of three subjects of eternal fascination: human psychology, morality, and John von Neumann's game theory. Hungarian game-theorist Laszlo Mero introduces us to the basics of game theory, including such concepts as zero-sum games, Prisoner's Dilemma and the origins of altruism; shows how game theory is applicable to fields ranging from physics to politics; and explores the role of rational thinking in the context of many different kinds of thinking. This fascinating, urbane book will interest everyone who wonders what mathematics can tell us about the human condition.

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Are people ever rational? Consider this: You auction off a one-dollar bill to the highest bidder, but you set the rules so that the second highest bidder also has to pay the amount of his last bid, even though he gets nothing. Would people ever enter such an auction? Not only do they, but according to Martin Shubik, the game's inventor, the average winning bid (for a dollar, remember) is $3.40. Many winners report that they bid so high only because their opponent "went completely crazy." This game lies at the intersection of three subjects of eternal fascination: human psychology, morality, and John von Neumann's game theory. Hungarian game-theorist Laszlo Mero introduces us to the basics of game theory, including such concepts as zero-sum games, Prisoner's Dilemma and the origins of altruism; shows how game theory is applicable to fields ranging from physics to politics; and explores the role of rational thinking in the context of many different kinds of thinking. This fascinating, urbane book will interest everyone who wonders what mathematics can tell us about the human condition.

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Are people ever rational? Consider this: You auction off a one-dollar bill to the highest bidder, but you set the rules so that the second highest bidder also has to pay the amount of his last bid, even though he gets nothing. Would people ever enter such an auction? Not only do they, but according to Martin Shubik, the game's inventor, the average winning bid (for a dollar, remember) is $3.40. Many winners report that they bid so high only because their opponent "went completely crazy." This game lies at the intersection of three subjects of eternal fascination: human psychology, morality, and John von Neumann's game theory. Hungarian game-theorist Laszlo Mero introduces us to the basics of game theory, including such concepts as zero-sum games, Prisoner's Dilemma and the origins of altruism; shows how game theory is applicable to fields ranging from physics to politics; and explores the role of rational thinking in the context of many different kinds of thinking. This fascinating, urbane book will interest everyone who wonders what mathematics can tell us about the human condition.
Content:
Front Matter....Pages i-xi
Front Matter....Pages 1-1
Auction and Posing....Pages 3-14
The Brute as Hero....Pages 15-27
The Prisoner’s Dilemma....Pages 28-47
The Golden Rule....Pages 48-66
The Bluff....Pages 67-80
Front Matter....Pages 81-81
John von Neumann’s Game Theory....Pages 83-102
Competition for a Common Goal....Pages 103-118
Hawks and Doves....Pages 119-134
Socialism and Free Enterprise....Pages 135-149
Games Elementary Particles Play....Pages 150-171
Front Matter....Pages 173-173
Loves Me, Loves Me Not.......Pages 175-190
Rational Irrationality....Pages 191-207
Collective Rationality....Pages 208-224
The Heterogeneity of Human Thought....Pages 225-241
There Are Many Ways to Nirvana....Pages 242-259
Back Matter....Pages 261-276

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Are people ever rational? Consider this: You auction off a one-dollar bill to the highest bidder, but you set the rules so that the second highest bidder also has to pay the amount of his last bid, even though he gets nothing. Would people ever enter such an auction? Not only do they, but according to Martin Shubik, the game's inventor, the average winning bid (for a dollar, remember) is $3.40. Many winners report that they bid so high only because their opponent "went completely crazy." This game lies at the intersection of three subjects of eternal fascination: human psychology, morality, and John von Neumann's game theory. Hungarian game-theorist Laszlo Mero introduces us to the basics of game theory, including such concepts as zero-sum games, Prisoner's Dilemma and the origins of altruism; shows how game theory is applicable to fields ranging from physics to politics; and explores the role of rational thinking in the context of many different kinds of thinking. This fascinating, urbane book will interest everyone who wonders what mathematics can tell us about the human condition.
Content:
Front Matter....Pages i-xi
Front Matter....Pages 1-1
Auction and Posing....Pages 3-14
The Brute as Hero....Pages 15-27
The Prisoner’s Dilemma....Pages 28-47
The Golden Rule....Pages 48-66
The Bluff....Pages 67-80
Front Matter....Pages 81-81
John von Neumann’s Game Theory....Pages 83-102
Competition for a Common Goal....Pages 103-118
Hawks and Doves....Pages 119-134
Socialism and Free Enterprise....Pages 135-149
Games Elementary Particles Play....Pages 150-171
Front Matter....Pages 173-173
Loves Me, Loves Me Not.......Pages 175-190
Rational Irrationality....Pages 191-207
Collective Rationality....Pages 208-224
The Heterogeneity of Human Thought....Pages 225-241
There Are Many Ways to Nirvana....Pages 242-259
Back Matter....Pages 261-276
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