Kenneth Binmore
Encyclopedia
Kenneth George "Ken" Binmore, (born 27 September 1940) is a British mathematician
, economist
and game theorist
. He is a Professor Emeritus of Economics at the University of London and a Visiting Emeritus Professor of Economics at the University of Bristol
.
He is one of the founders of the modern economic theory of bargaining (along with Nash
and Rubinstein
), and has made important contributions to the foundations of game theory
, experimental economics
, and evolutionary game theory
, as well as to analytical philosophy. Binmore took up economics after a career in mathematics, during which he held the Chair of Mathematics at the London School of Economics
. Since his switch to economics he has been at the forefront of developments in game theory. His other research interests include political and moral philosophy, decision theory
, and statistics
. He is the author of more than 100 scholarly papers and 14 books.
where he was awarded 1st class honours BSc with Governor's Prize, and subsequently PhD (in Mathematical Analysis).
. He began his experimental work in the 1980s when most economists thought that game theory would not work in the laboratory. Binmore and his collaborators established that game theory can often predict the behaviour of experienced players very well in laboratory settings, even in the case of human bargaining behaviour, a particularly challenging case for game theory. This has brought him into conflict with some proponents of behavioural economics who emphasize the importance of other-regarding or social preferences, and argue that their findings threaten traditional game theory.
Binmore’s work in political and moral philosophy began in the 1980s when he first applied bargaining theory to John Rawls
' original position. His search for the philosophical foundations of the original position
took him first to Kant
's works, and then to Hume
. Hume inspired Binmore to contribute to a naturalistic science of morals that seeks foundations for Rawlsian ideas about fairness norms in biological and social evolution. The result was his two-volume Game Theory and the Social Contract, an ambitious attempt to lay the foundations for a genuine science of morals using the theory of games. In Game Theory and the Social Contract Binmore proposes a naturalistic reinterpretation of John Rawls
' original position that reconciles his egalitarian theory of justice with John Harsanyi
's utilitarian theory. His recent Natural Justice provides a nontechnical synthesis of this work.
. Funded by the Economic and Social Research Council, ELSE pursues fundamental research on evolutionary and learning approaches to games and society, and it applies its theoretical findings to practical problems in government and business.
While the Director of ELSE, Binmore became widely known as the ‘poker-playing economic theorist’ who netted the British government £22 billion when he led the team that designed the third generation (3G) telecommunications auction
in 2000. He went on to design and implement 3G spectrum auctions in Belgium
, Denmark
, Greece
, Israel
and Hong Kong
.
Binmore is Emeritus Professor of Economics at University College London
, Visiting Emeritus Professor of Economics at the University of Bristol
and Visiting Professor in the Department of Philosophy, Logic and Scientific Method at the London School of Economics
. He has held corresponding positions at the London School of Economics
, Caltech, the University of Pennsylvania
and the University of Michigan
. He is a Fellow of the Econometric Society
and the British Academy
. He was awarded the CBE
in the New Years Honours List 2001 for contributions to game theory and for his role in designing the UK’s 3G telecommunications auctions. He was elected a Foreign Honorary Member of the American Academy of Arts and Sciences
in 2002. In 2007 he was appointed an Honorary Research Fellow in the Department of Philosophy at the University of Bristol
and an Honorary Fellow of the Centre for Philosophy at the London School of Economics
.
Mathematician
A mathematician is a person whose primary area of study is the field of mathematics. Mathematicians are concerned with quantity, structure, space, and change....
, economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and game theorist
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...
. He is a Professor Emeritus of Economics at the University of London and a Visiting Emeritus Professor of Economics at the University of Bristol
University of Bristol
The University of Bristol is a public research university located in Bristol, United Kingdom. One of the so-called "red brick" universities, it received its Royal Charter in 1909, although its predecessor institution, University College, Bristol, had been in existence since 1876.The University is...
.
He is one of the founders of the modern economic theory of bargaining (along with Nash
John Forbes Nash
John Forbes Nash, Jr. is an American mathematician whose works in game theory, differential geometry, and partial differential equations have provided insight into the forces that govern chance and events inside complex systems in daily life...
and Rubinstein
Ariel Rubinstein
Ariel Rubinstein is an Israeli economist who works in game theory. He was educated at the Hebrew University of Jerusalem, 1972–1979, in both mathematics and economics...
), and has made important contributions to the foundations of game theory
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...
, experimental economics
Experimental economics
Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in...
, and evolutionary game theory
Evolutionary game theory
Evolutionary game theory is the application of Game Theory to evolving populations of lifeforms in biology. EGT is useful in this context by defining a framework of contests, strategies and analytics into which Darwinian competition can be modelled. It originated in 1973 with John Maynard Smith...
, as well as to analytical philosophy. Binmore took up economics after a career in mathematics, during which he held the Chair of Mathematics at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
. Since his switch to economics he has been at the forefront of developments in game theory. His other research interests include political and moral philosophy, decision theory
Decision theory
Decision theory in economics, psychology, philosophy, mathematics, and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision...
, and statistics
Statistics
Statistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments....
. He is the author of more than 100 scholarly papers and 14 books.
Education
He studied mathematics at Imperial College LondonImperial College London
Imperial College London is a public research university located in London, United Kingdom, specialising in science, engineering, business and medicine...
where he was awarded 1st class honours BSc with Governor's Prize, and subsequently PhD (in Mathematical Analysis).
Research
Binmore's major research contributions are to the theory of bargaining and its testing in the laboratory. He is a pioneer of experimental economicsExperimental economics
Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in...
. He began his experimental work in the 1980s when most economists thought that game theory would not work in the laboratory. Binmore and his collaborators established that game theory can often predict the behaviour of experienced players very well in laboratory settings, even in the case of human bargaining behaviour, a particularly challenging case for game theory. This has brought him into conflict with some proponents of behavioural economics who emphasize the importance of other-regarding or social preferences, and argue that their findings threaten traditional game theory.
Binmore’s work in political and moral philosophy began in the 1980s when he first applied bargaining theory to John Rawls
John Rawls
John Bordley Rawls was an American philosopher and a leading figure in moral and political philosophy. He held the James Bryant Conant University Professorship at Harvard University....
' original position. His search for the philosophical foundations of the original position
Original position
The original position is a hypothetical situation developed by American philosopher John Rawls as a thought experiment to replace the imagery of a savage state of nature of prior political philosophers like Thomas Hobbes. In it, the parties select principles that will determine the basic structure...
took him first to Kant
KANT
KANT is a computer algebra system for mathematicians interested in algebraic number theory, performing sophisticated computations in algebraic number fields, in global function fields, and in local fields. KASH is the associated command line interface...
's works, and then to Hume
David Hume
David Hume was a Scottish philosopher, historian, economist, and essayist, known especially for his philosophical empiricism and skepticism. He was one of the most important figures in the history of Western philosophy and the Scottish Enlightenment...
. Hume inspired Binmore to contribute to a naturalistic science of morals that seeks foundations for Rawlsian ideas about fairness norms in biological and social evolution. The result was his two-volume Game Theory and the Social Contract, an ambitious attempt to lay the foundations for a genuine science of morals using the theory of games. In Game Theory and the Social Contract Binmore proposes a naturalistic reinterpretation of John Rawls
John Rawls
John Bordley Rawls was an American philosopher and a leading figure in moral and political philosophy. He held the James Bryant Conant University Professorship at Harvard University....
' original position that reconciles his egalitarian theory of justice with John Harsanyi
John Harsanyi
John Charles Harsanyi was a Hungarian-Australian-American economist and Nobel Memorial Prize in Economic Sciences winner....
's utilitarian theory. His recent Natural Justice provides a nontechnical synthesis of this work.
Affiliations
In 1995 Binmore became one of the founding directors of the Centre for Economic Learning and Social Evolution (ELSE), an interdisciplinary research centre involving economists, psychologists, anthropologists and mathematicians based at University College LondonUniversity College London
University College London is a public research university located in London, United Kingdom and the oldest and largest constituent college of the federal University of London...
. Funded by the Economic and Social Research Council, ELSE pursues fundamental research on evolutionary and learning approaches to games and society, and it applies its theoretical findings to practical problems in government and business.
While the Director of ELSE, Binmore became widely known as the ‘poker-playing economic theorist’ who netted the British government £22 billion when he led the team that designed the third generation (3G) telecommunications auction
Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
in 2000. He went on to design and implement 3G spectrum auctions in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
.
Binmore is Emeritus Professor of Economics at University College London
University College London
University College London is a public research university located in London, United Kingdom and the oldest and largest constituent college of the federal University of London...
, Visiting Emeritus Professor of Economics at the University of Bristol
University of Bristol
The University of Bristol is a public research university located in Bristol, United Kingdom. One of the so-called "red brick" universities, it received its Royal Charter in 1909, although its predecessor institution, University College, Bristol, had been in existence since 1876.The University is...
and Visiting Professor in the Department of Philosophy, Logic and Scientific Method at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
. He has held corresponding positions at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
, Caltech, the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
and the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
. He is a Fellow of the Econometric Society
Econometric Society
The Econometric Society is an international society for the advancement of economic theory in its relation with statistics and mathematics. It was founded on December 29, 1930 at the Stalton Hotel in Cleveland, Ohio....
and the British Academy
British Academy
The British Academy is the United Kingdom's national body for the humanities and the social sciences. Its purpose is to inspire, recognise and support excellence in the humanities and social sciences, throughout the UK and internationally, and to champion their role and value.It receives an annual...
. He was awarded the CBE
CBE
CBE and C.B.E. are abbreviations for "Commander of the Order of the British Empire", a grade in the Order of the British Empire.Other uses include:* Chemical and Biochemical Engineering...
in the New Years Honours List 2001 for contributions to game theory and for his role in designing the UK’s 3G telecommunications auctions. He was elected a Foreign Honorary Member of the American Academy of Arts and Sciences
American Academy of Arts and Sciences
The American Academy of Arts and Sciences is an independent policy research center that conducts multidisciplinary studies of complex and emerging problems. The Academy’s elected members are leaders in the academic disciplines, the arts, business, and public affairs.James Bowdoin, John Adams, and...
in 2002. In 2007 he was appointed an Honorary Research Fellow in the Department of Philosophy at the University of Bristol
University of Bristol
The University of Bristol is a public research university located in Bristol, United Kingdom. One of the so-called "red brick" universities, it received its Royal Charter in 1909, although its predecessor institution, University College, Bristol, had been in existence since 1876.The University is...
and an Honorary Fellow of the Centre for Philosophy at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
.
Books
- (1977). Mathematical Analysis: A Straightforward Approach. New York: Cambridge University Press.
- (1980). Foundations of Analysis: Book 1: Logic, Sets and Numbers. Cambridge University Press.
- (1980). Foundations of Analysis: Book 2: Topological Ideas. Cambridge University Press.
- (1986). Economic Organizations As Games (co-edited with Partha Dasgupta). Basil Blackwell.
- (1987). The Economics of Bargaining (co-edited with Partha Dasgupta). Basil Blackwell. A collection including many of Binmore's classic early papers on Nash bargaining theory.
- (1990). Essays on the Foundations of Game Theory. Basil Blackwell. A collection which includes Binmore's seminal papers “Modeling Rational Players I and II” from Economics and Philosophy, 1987.
- (1991). Fun and Games: A Text on Game Theory. D. C. Heath and Company.
- Game Theory and the Social Contract:. Volume 1: Playing Fair. Cambridge: MIT Press.. Volume 2: Just Playing. Cambridge: MIT Press.
- (2002). Calculus: Concepts and Methods (with Joan Davies). Cambridge University Press.
- (2005). Natural Justice. New York: Oxford University Press.
- (2007). Playing for Real – A Text on Game Theory. New York: Oxford University Press.
- (2007). Does Game Theory Work? The Bargaining Challenge. MIT Press. A collection of Binmore's influential papers on bargaining experiments, with a newly written commentary addressing the challenges to game theory posed by the behavioural school of economics.
- (2008). Game Theory: A Very Short Introduction. Oxford University Press. With mini-biographies of many founders of the subject—including John Nash—this book offers a concise overview of a cutting-edge field that has seen spectacular successes in evolutionary biology and economics, and is beginning to revolutionize other disciplines from psychology to political science.
- (2009). Rational Decisions. Princeton University Press. Binmore explains the foundations of Bayesian decision theory, shows why Savage restricted the theory's application to small worlds, and argues that the Bayesian approach to knowledge is inadequate in a large world.
Selected articles
- K. Binmore, A. Rubinstein and A. Wolinsky, “The Nash Bargaining Solution in Economic Modeling,” Rand Journal of Economics, 1986.
- K. Binmore, "Perfect Equilibria in Bargaining Models," in K. Binmore and P. Dasgupta, editors, The Economics of Bargaining, Basil Blackwell, Oxford, 1987.
- K. Binmore, “Modeling Rational Players I and II,” Economics and Philosophy, 1987.
- K. Binmore, A. Shaked and J. Sutton, “An Outside Option Experiment,” Quarterly Journal of Economics, 1989.
- K. Binmore, "Debayesing Game Theory," in B. Skyrms, editor, Studies in Logic and the Foundations of Game Theory: Proceedings of the Ninth International Congress of Logic, Methodology and the Philosophy of Science, Kluwer, Dordrecht, 1992.
- K. Binmore and L. Samuelson, "Evolutionary Stability in Repeated Games Played by Finite Automata," Journal of Economic Theory, 57, 1992.
- K. Binmore, J. Gale, and L. Samuelson, "Learning to be Imperfect: The Ultimatum Game," Games and Economic Behavior, 8, 1995.
- K. Binmore and L. Samuelson, "Muddling Through: Noisy Equilibrium Selection," Journal of Economic Theory, 74, 1997.
- K. Binmore, “Rationality and Backward Induction,” Journal of Economic Methodology, 4, 1997.
- K. Binmore, J. McCarthy, G. Ponti, A. Shaked and L. Samuelson, "A Backward Induction Experiment," Journal of Economic Theory, 104, 2002.
- K. Binmore and P. Klemperer, "The Biggest Auction Ever: The Sale of the British 3G Telecom Licences," Economic Journal, 112, 2002.
- K. Binmore and L. Samuelson, "The Evolution of Focal Points," Games and Economic Behavior, 55, 2006.
- K.Binmore and A. Shaked, "Experimental Economics: Where Next?" Journal of Economic Behavior and Organization, 2009.
Interviews with Binmore
'The Origin of Fairness' in Alex Voorhoeve Conversations on Ethics. Oxford University Press, 2009. ISBN 978-0-19-921537-9 (On Binmore's approach to moral philosophy.)External links
- Professor Binmore's ELSE page at UCL
- Professor Binmore's University of Bristol page
- Binmore's review of Robert Axelrod's Complexity of Cooperation: Agent-Based Models of Competition and Collaboration, 1997.
- One-armed economists show big business how to play the game. Article by Binmore on the British 3G telecoms auction for The Independent, 29 May 2000.
- Another 5 Numbers: Game Theory. Simon SinghSimon SinghSimon Lehna Singh, MBE is a British author who has specialised in writing about mathematical and scientific topics in an accessible manner....
interviews Binmore for BBC Radio 4 on bluffing in poker and the British 3G telecoms auction, 31 October 2003. - The dividend. Review of Binmore's Natural Justice by Brian SkyrmsBrian SkyrmsBrian Skyrms is a Distinguished Professor of Logic and Philosophy of Science and Economics at the University of California, Irvine and a Professor of Philosophy at Stanford University. He has worked on problems in the philosophy of science, causation, decision theory, game theory, and the...
in the Times Literary Supplement, 8 July 2005. - Symposium on Binmore's Natural Justice in Politics, Philosophy & Economics, 1 February 2006, Volume 5, No. 1.
- Binmore's "Making Decisions in Large Worlds". A recent paper which argues that we need to look beyond Bayesian decision theory for an answer to the general problem of making rational decisions under uncertainty.
- Binmore and Shaked's "Experimental Economics: Science or What?". A revised version of Shaked's controversial critique of the literature on "inequity aversion", which warns that economists may lose the respect of other scientific disciplines in accepting wide claims about human behavior without a critical examination of the data from which the claims are supposedly derived, or the methodology employed in analyzing the data.
- "Rules of the Game". A recent article in Prospect magazine in which Binmore argues that governments should take note of the theory of "mechanism design" — work on which recently won three economists the Nobel Prize.