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In economics and game theory, a participant is considered to have superrationality (or renormalized rationality) if they have perfect rationality (and thus maximize their utility) but assume that all other players are superrational too and that a superrational individual will always come up with the same strategy as any other superrational thinker when facing the same problem. Applying this definition, a superrational player playing against a superrational opponent in a prisoner's dilemma will cooperate while a rationally self-interested player would defect.
This decision rule is not a mainstream model in game theory and was suggested by Douglas Hofstadter in his article, series, and book Metamagical Themas[1] as an alternative type of rational decision making different from the widely accepted game-theoretic one. Hofstadter provided this definition: "Superrational thinkers, by recursive definition, include in their calculations the fact that they are in a group of superrational thinkers."[1]
Unlike the supposed "reciprocating human", the superrational thinker will not always play the equilibrium that maximizes the total social utility and is thus not a philanthropist.
^ abHofstadter, Douglas (June 1983). "Dilemmas for Superrational Thinkers, Leading Up to a Luring Lottery". Scientific American. 248 (6). – reprinted in: Hofstadter, Douglas (1985). Metamagical Themas. Basic Books. pp. 737–755. ISBN 0-465-04566-9.
agreed-upon extension of the concept of superrationality to asymmetric games.) Some argue[who?] that superrationality implies a kind of magical thinking in...
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