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Abstract
It is widely believed that experimental results of behavioral game theory undermine standard economic and game theory. This paper suggests that experimental results present serious theoretical modeling challenges, but do not undermine two pillars of contemporary economic theory: the rational actor model, which holds that individual choice can be modeled as maximization of an objective function subject to informational and material constraints, and the incentive compatibility requirement, which holds that macroeconomic quantities must be derived from the interaction and aggregation of individual choices. However, we must abandon the notion that rationality implies self-regarding behavior and the assumption that contracts are costlessly enforced by third parties.

Strategic reasoning must take place, explicitly or implicitly, within some framework, whether formal or otherwise. It is often assumed that game theory is the only formal framework for strategic analysis. However, strategic reasoning is here distinguished from its particular bases. It is suggested that formal bases other than the game theoretic one are possible. A number of weaknesses & inadequacies of game theory, both as a direct & as an indirect basis for strategic reasoning, are pointed out. (With a game theoretic model of bargaining processes which in turn serves as a framework for strategic reasoning, game theory forms an indirect basis.) An alternative approach is suggested, involving the idea of a closed loop system; & it is argued that this may serve as a more fruitful basis for strategic reasoning. IPSA.

Discusses the etymological & philosophical underpinnings of "political theory," with particular reference to Plato & to Arendt's critique of Platonism. The Greek concept of theoria implies solitary contemplation, while polis evokes the plural, active life. Arendt's notion of "plurality" (which should be distinguished from the contemporary interest in "pluralism") is bound up in identity & uniqueness, rather than in the epistemological theorization of the state. Thus, Arendt's model is especially relevant to political thought in an era of globalization & post-11 Sept 2001 intellectual inquiry. K. Coddon