Harvey Lederman

The coordinated attack scenario and the electronic mail game are two paradoxes of common knowledge. In simple mathematical models of these scenarios, the agents represented by the models can coordinate only if they have common knowledge that they will. As a result, the models predict that the agents will not coordinate in situations where it would be rational to coordinate. I argue that we should resolve this conflict between the models and facts about what it would be rational to do by rejecting common knowledge assumptions implicit in the models. I focus on the assumption that the agents have common knowledge that they are rational, and provide models to show that denying this assumption suffices for a resolution of the paradoxes. I describe how my resolution of the paradoxes fits into a general story about the relationship between rationality in situations involving a single agent and rationality in situations involving many agents.

An important objection to preference-satisfaction theories of well-being is that they cannot make sense of interpersonal comparisons. A tradition dating back to Harsanyi :434, 1953) attempts to solve this problem by appeal to people’s so-called extended preferences. This paper presents a new problem for the extended preferences program, related to Arrow’s celebrated impossibility theorem. We consider three ways in which the extended-preference theorist might avoid this problem, and recommend that she pursue one: developing aggregation rules that violate Arrow’s Independence of Irrelevant Alternatives condition.