Conrad Heilmann

We conceive of a player in dynamic games as a set of agents, which are assigned the distinct tasks of reasoning and node-specific choices. The notion of agent connectedness measuring the sequential stability of a player over time is then modeled in an extended type-based epistemic framework. Moreover, we provide an epistemic foundation for backward induction in terms of agent connectedness. Besides, it is argued that the epistemic independence assumption underlying backward induction is stronger than usually presumed.

We analyze the sequential structure of dynamic games with perfect information. A three-stage account is proposed, that species setup, reasoning and play stages. Accordingly, we define a player as a set of agents corresponding to these three stages. The notion of agent connectedness is introduced into a type-based epistemic model. Agent connectedness measures the extent to which agents' choices are sequentially stable. Thus describing dynamic games allows to more fully understand strategic interaction over time. In particular, we provide suffcient conditions for backward induction in terms of agent connectedness. Also, our framework makes explicit that the epistemic independence assumption involved in backward induction reasoning is stronger than usually presumed, and makes accessible multiple-self interpretations for dynamic games.

This paper provides a methodological analysis of Libertarian Paternalism, as put forward in the book Nudge by Richard Thaler and Cass Sunstein (Yale University Press, 2008). Libertarian Paternalism aims to use the accumulated findings of behavioural economics in order to assist decision-makers to make better choices. The philosophical debate about this proposal has focused on normative issues with regards to this proposal. This paper analyses Libertarian Paternalism descriptively and points out four methodological conditions for successful Nudges. On that basis, a methodological critique of Libertarian Paternalism is mounted: the success conditions suggest that Nudges might be even harder to implement and to justify than commonly assumed in the philosophical debate