Empirical applicability of gt

By definition, a successful application of gt to a set of empirical data (an histo­gram ν) consists of finding utility functions u_i and an equilibrium b* of the game with respect to such functions, that explain (rationalize) the empirical data.

The logical structure of game theory 131 main task of normal science within this scientific paradigm consists of determin­ing the utility functions of the agents out of their observed behavior. The empir­ical claim of GT is that this task can be successfully pursued for the observed behavior of agents in strategic situations.

Note

1 A review of this literature, since the publication of Samuelson’s seminal article (1938) until 2005, is found in Varian (2006).

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