  Rational players in game theory are neoliberal in the sense that they can
choose any available action so as to maximize their payoffs. It is well known
that this can result in Pareto inferior outcomes (e.g. the Prisoner's Dilemma).
Classical liberalism, in contrast, argues that people should be constrained by
a no-harm principle (NHP) when they act. We show, for the first time to the
best of our knowledge, that rational players constrained by the NHP will
produce Pareto efficient outcomes in n-person non-cooperative games. We also
show that both rationality and the NHP are required for this result.
