Game Theory and Human Behavior
Game theory is multiplayer decision theory where the choices of each player affect the payoffs to other players, and the players take this into account in their choice behavior. This chapter addresses the contribution of game theory to the design of experiments aimed at understanding the behavior of individuals engaged in strategic interaction. This is referred to as behavioral game theory. The chapter goes on to discusses charter virtues, defined as ethically desirable behavioral regularities that individuals value for their own sake, while having the property of facilitating cooperation and enhancing social efficiency. It presents two studies that illustrate the situational nature of preferences and the desire to conform to social norms. It then deals with the dark side of altruistic cooperation and norms of cooperation.