Risk, Decision and Policy


Technical Articles

Modal logic and game theory: two alternative approaches


GIACOMO   BONANNO  a1
a1 Department of Economics, University of California, Davis, CA 95616-8578 USA. E-mail: gfbonanno@ucdavis.edu

Abstract

Two views of game theory are discussed: (1) game theory as a description of the behavior of rational individuals who recognize each other's rationality and reasoning abilities, and (2) game theory as an internally consistent recommendation to individuals on how to act in interactive situations. It is shown that the same mathematical tool, namely modal logic, can be used to explicitly model both views.