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The Ontology of Schelling's "Theory of Interdependent Decisions"

Lauren Larrouy

No 2015-38, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: The present paper offers a methodological contribution on Schelling's insight into game theory drawing both on his proposition for a "reorientation of game theory" and his dynamic models of residential segregation. It aims to show how these respective works exhibit coherence in Schelling's thinking. It is often claimed that Schelling criticizes standard game theory without proposing any conceptual solution. To the contrary, I assert that the methodological constraints Schelling identifies in standard game theory support the proposition of a new type of modeling in the dynamic models of residential segregation: the first agent based modeling. I argue that the agent-based models provide a theoretic ground to formalize the methodological innovations proposed in his “reorientation of game theory.” To understand such a claim I stress the social ontology underlined in Schelling's conception of a "theory of interdependent decisions."

Keywords: Schelling; ontology; game theory; residential segregation; agent-based models (search for similar items in EconPapers)
JEL-codes: B41 B52 C72 D74 D81 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-03
New Economics Papers: this item is included in nep-cbe, nep-gth and nep-hme
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