"A theory of farsightedness in social environment"

Abstract :
We consider social environments, which are interactive decision-making environments introduced by Chwe (1994). We propose some basic axioms of farsighted standard of behavior. These axioms include that of prudence, anticipation and common rationality. We prove that in general, there does not exist farsighted solution concept. Next considering a specific class of games, namely the class of acyclic environments, we prove the existence of a unique farsighted standard of behavior for that class.