Presentation of an excerpt of my Bachelor Thesis, Rule-Following and Economic Man Presented on April 30, 2013

1. Rational Economic Man
and Rule-following
Including “a story of politics, honor, faith,
crime, and, necessarily, death”

2. What does it mean to say that
people follow rules?
Economics: rational since 1651
Sociology: internalize this!
Philosophy: reason rules

3. Modelling commitment
Simple Trust Game Absolute commitment
Relative commitment

4. Alexander Hamilton: a case in (gun) point
Hamilton’s duel considered
before as a case of rule-
following:
• Axelrod 1986
• North 1990
Rationality of Duelling:
• Allen & Reed 2006
• Kingston & Wright 2010

5. Opportunism
- might possibly die
- might possibly never see family again
- family may suffer
- creditors may suffer
- might possibly kill Burr, whom he has no
“ill will” against
- will “hazard much and gain nothing”
- adds to the number of “bad examples”
+ Live
- cannot be “in future, useful … in crises of
public affairs”

6. Pre-programmed Behavior
- might possibly die
- might possibly never see family again
- family may suffer
- creditors may suffer
- might possibly kill Burr, whom he has no
“ill will” against
- will “hazard much and gain nothing”
- adds to the number of “bad examples”

7. „Unchooseable“Options
- might possibly die
- might possibly never see family again
- family may suffer
- creditors may suffer
- might possibly kill Burr, whom he has no
“ill will” against
- will “hazard much and gain nothing”
- adds to the number of “bad examples”
+ Live
- cannot be “in future, useful … in crises of
public affairs”
Ruled out by
Code of Honor

8. Lexicographic preordering of Rules 1
+ Conforms to Code of Honor
- Violates Code of Honor

9. Lexicographic preordering of Rules 2
+ Conforms to Code of Honor
- Violates religious principles
- Violates moral principles
- Violates obligations towards creditors
+ Conforms to religious principles
+ Conforms to moral principles
+ Fulfills obligations towards creditors
- Violates Code of Honor

10. Rules as Reasons
+ Conforms to Code of Honor
- Violates religious principles
- Violates moral principles
- Violates obligations towards creditors
- might possibly die
- might possibly never see family again
- family may suffer
- creditors may suffer
- might possibly kill Burr, whom he has no “ill will”
against
- will “hazard much and gain nothing”
- adds to the number of “bad examples”
+ Conforms to religious principles
+ Conforms to moral principles
+ Fulfills obligations towards creditors
+ Conforms with Law
- Violates Code of Honor
+ Live
- cannot be “in future, useful … in crises of public affairs”

11. Rule-following is meaningless
without the possibility of its opposite,
rule-breaking