Game theory and the self-interested Nash equilibrium against the altruistic Berge equilibrium in the framework of the ethical perspective

Authors

1 Department of Economics Vali-e-Asr University of Rafsanjan

2 PhD in Economics, Allameh Tabataba'i University

3 Department of Mathematics, Vali-e-Asr University of Rafsanjan

10.30471/iee.2024.10318.2434

Abstract

Today, the role of ethics is very important and decisive in the functions, choices and decisions, as well as in the field of interactive and mutual behavior of humans. Therefore, there is a close relationship between ethical approaches and game theory, which examines the behaviors and strategic interaction between humans as players and the resulting consequences. In moral philosophy, we are faced with two behavioral distinctions related to the pattern of behavior based on self-interest or egoism and also behavior based on altruism or altruistic behavior. On the other hand, in game theory, we are dealing with two Nash equilibrium concepts corresponding to the self-interested point of view and Berge equilibrium concept corresponding to the altruistic; the first based on individual rationality and the second based on group rationality. Therefore, in this study, we analyzed the utilitarian and altruistic viewpoints in the framework of game theory literature and ethical approach, and we are looking for an answer to the question that which of these two viewpoints can provide more social benefits. And whether these two concepts of equilibrium in some important and famous games will have different answers or not, and which one is more compatible with the moral and rational behavior? However, the examination of the equilibrium in some famous games shows that the Berge equilibrium, which confirms the golden rule in ethics, can bring higher social welfare and welfare to the whole society, which is in accordance with the Islamic views in the ethical.

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