Conventions: rational and dynamic

I argue that repeated interactions among rational agents lead to the establishment of optimising social conventions. Rational agency on the individual level interacts with social structures and established social conventions, which are seen as equilibria of repeated interactions. Put differently, individual behaviour determines the type of social structures that become established and at the same time, established social structures set boundaries for individual behaviour. The argument is twofold: (1) Rational agency is bounded by a given social environment and (2) social conventions arise and become established as a result of repeated interactions; as such they are rational in that they ensure individual maximisation and dynamic in that they are subject to change depending on individual preferences. There are three assumptions necessary for this argument to hold: Rational agency, iterated, non-random interactions and information availability.