Salience Tarek Rached Overview • David Gauthier proposes salience as a criterion for equilibrium selection in his paper Coordination, published in in Dialogue, 14:195-221, 1975 • 13 years later, Margaret Gilbert challenges the validity of salience in her paper Rationality and Salience in Philosophical Studies, 57:61-77, 1989 • Both of these are written for a philosophical audience, although Nash and others are cited Gauthier • Introduces the problem of coordination – Successful coordination requires each player to maximize utility based on the other player’s actions – Successful coordination will always result in an equilibrium • Discusses the difference between explicit and tacit coordination – Restricts his arguments to “situations in which all [players] are sufficiently informed about the circumstances” without allowing communication • Discusses optimality – Notes that in games such as the Prisoner’s Dilemma, the optimal outcome and the equilibirum outcome may not be the same. – Restricts his arguments to games in which they are the same Gauthier (cont’d) • Omits any mention of mixed strategies, implicitly restricting the paper to pure strategies • Proposes a Principle of Coordination – “In a situation with one and only one outcome which is both optimal and a best equilibrium” the action leading to that outcome is the rational choice • Seeks a Theory of Rational Coordination – By which in any situation, a single best action can be determined Multiple Equilibria: An Example • Suppose you are coming from Richmond to Charlottesville on a bus, and I have agreed to meet you. • Unfortunately, once you are on your way, I discover that there are two buses from Richmond, one of which arrives at the Corner, the other at the Downtown Mall. – Which bus do you take? – Where do I go to meet you? Multiple Equilibria: An Example D. Mall Corner D. Mall 5, 5 0, 0 Corner 0, 0 5, 5 • 2 identical equilibria as shown – no way to choose between them The Problem of Multiple Equilibria • Suppose we both know that if we don’t meet, we would both rather be at the Corner because you want to check out some records at Plan 9, and I like smoothies. D. Mall Corner D. Mall 5, 5 0, 1 Corner 1, 0 5, 5 • Then going to the Corner becomes the salient choice for both of us The Problem of Multiple Equilibria • Suppose instead that we both independently check the bus schedules and find that the bus to the Downtown Mall runs more frequently Expected Utility Seek Salience Ignore Salience Meet 5, 5 2.5, 50% 2.5 D. Mall Corner D. Mall 5, 5 0, 0 SS Corner 0, 0 5, 5 IS 2.5, 50% 2.5 2.5, 50% 2.5 • Then going to the Downtown Mall becomes the salient choice for both of us What is Salience? • The salient choice is the choice “which is apprehended as as standing out from the others.” • How do we determine which choice stands out from the others? – External information (as seen) – Structure of the game • Let’s look at some more examples A New Game A B C A 3, 3 0, 0 0, 0 B 0, 0 2, 2 0, 0 C 0, 0 0, 0 2, 2 Here, the salient solution is clear (It’s also the best equilibrium) A New Game, cont’d Expected Utility A B C A 3, 3 0, 0 0, 0 B 0, 0 2, 2 0, 0 SS C 0, 0 0, 0 3, 3 IS 2/3, 2/3 8/9, 8/9 Seek Salience Ignore Salience 2, 2 2/3, 2/3 • Whereas here, it is not obvious – Gauthier claims you would “ignore salience” by randomizing over the 3 possibilities, I would say you would randomize over the 2 best equilibra – Seeking salience still a best equilbria in the right table What’s Going On? • Gauthier seeks to use salience as the basis for his Theory of Rational Coordination • Unfortunately… • “The apprehension of salience is itself not, or at least not only, a rational apprehension.” - Gauthier Gauthier (cont’d) • Seeks to apply his theory of salience to the philisophical realm of act-utilitarianism – All persons in society are rational maximizers of individual utility – D.H. Hodgson writes that promise keeping and truth selling cannot be enforced in such a society – Gauthier applies salience to argue that they are, in fact, encouraged On to Gilbert’s Counterexample: Kidnapped • 2 players are kidnapped and separated • Kidnapper gives them each a box with 4 buttons, each of a different color. • Tells the captives that in 10 minutes, each will have to press a button. If they both press the same color button, they are free. • Otherwise, they die. Kidnapped (cont’d) R G B Y R 1 0 0 0 G 0 1 0 0 B 0 0 1 0 Y 0 0 0 1 • Clearly, 4 best equilibria Kidnapped (cont’d) • Suppose that after the kidnapper told them about the buttons and their impending decision, he then tell them that he will turn on the radio. • The radio comes on, and it’s a sports broadcast about the Cincinnati Reds. The announcer comments on their nice new red uniforms, the red bleachers, and the red ketchup he just spilled on himself. • What then? Kidnapped (cont’d) R G B Y R 1 0 0 0 G 0 1 0 0 B 0 0 1 0 Y 0 0 0 1 Expected Utility SS Seek Salience Ignore Salience 1, 1 1/4, 1/4 IS 1/4, 1/4 1/4, 1/4 • Using salience, we are led to R-R • Fair enough Kidnapped (cont’d) • Suppose that after the bit on the Cincinnati Reds, the announcer breaks in with a quick news flash about the kidnapping, noting that one of the captives is notoriously salience-shy. • Red is still the salient choice, but it would now be irrational for the captives to choose it. Kidnapped (cont’d) • The extreme counter-example – Instead of the sports show, all the captives hear is a news bulletin about the kidnapping, which prominently mentions the fact that both captives hate the color red. • Red is still the salient choice, as it is distinct from the others, but it doesn’t make any sense to choose it. • Salience fails because it provides no rational criteria for “standing out” Our previous example • Suppose we both know that if we don’t meet, we would both rather be at the Corner because you want to check out some records at Plan 9, and I like smoothies. D. Mall Corner D. Mall 5, 5 0, 1 Corner 1, 0 5, 5 • We can claim that the Downtown Mall is salient by virtue of its “standing out” as the inferior choice. The Bottom Line • The perception of salience itself is a nonrational process • Even having successfully perceived salience, it is not at all clear that it is the rational choice • However, it can aid real (non-rational) players in games where knowledge of the world around them may be a factor Discuss
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