What is the relationship between game theory and the Walrasian paradigm? Between game theory and the Marxian paradigm?
The Walrasian paradigm in some ways can be seen as a subset of game theory. The Walrasian paradigm works under complete contracts, exogenous preferences, and self-interested actors. Game theory includes some of these assumptions in its more robust understanding of social interactions.
Cooperative contracts are complete contracts, contracts that can be enforced by law. Things like having to pay a wage to a worker stipulated in the contract. Noncooperative contracts are non-binding contracts, things that cannot be enforced by law. Things like the amount of effort a worker must put in to earn the agreed upon wage. Game theory captures the Walrasian assumption of complete contracts but also allows space for more than just complete contracts.
Similarily, people can be selfish in their behavior in game theory, but need not be. Altrustic behavior is also a potential behavior for an individual.
Game theory's relationship to the Marxian paradigm is the dialectic nature of games and institutions. Games can be used to model institutions. For example, you can set rules for a game by based on functions of an institution. On the other hand, you can model the outcomes of games as institutions. For example, equal distribution of a firm's final product might be the outcome of a game played. This back and forth causality can be perceived as dialectic and emphasizes the endogenity of institutions and games. Institutions cause game outcomes and game outcomes cause institutions.
