Picking the Right Players: Applying the Perceptive Interpretation of Game Theory to Rational-Choice Institutionalism

Abstract

This paper examines the choice of players and strategies in the application of game theoretic models to political institutions. Drawing on Ariel Rubinstein’s perceptive interpretation of game theory, I argue that the choice should be guided by the principle of relevancy; models should include only factors which are perceived by the players to be relevant. Extending Rubinstein’s concept to the choice of players and strategies, I interpret the literature on democracy as self-enforcing equilibrium and argue that the criterion I provide can help settle an argument between researchers in the field regarding the relevant players. Moreover, the approach provides criteria which define what counts as empirical evidence in support of a proposed model.