The purpose of this book is to develop a framework for analyzing
strategic rationality, a notion central to contemporary game
theory, which is the formal study of the interaction of rational
agents, and which has proved extremely fruitful in economics,
political theory, and business management. The author argues that a
logical paradox (known since antiquity as "the Liar paradox") lies
at the root of a number of persistent puzzles in game theory, in
particular those concerning rational agents who seek to establish
some kind of reputation. Building on the work of Parsons, Burge,
Gaifman, and Barwise and Etchemendy, Robert Koons constructs a
context-sensitive solution to the whole family of Liar-like
paradoxes, including, for the first time, a detailed account of how
the interpretation of paradoxial statements is fixed by context.
This analysis provides a new understanding of how the rational
agent model can account for the emergence of rules, practices, and
institutions.
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