In the methodology of scientific research programs (MSRP) there are important features on the problem of prediction, especially regarding novel facts. In his approach, Imre Lakatos proposed three different levels on prediction: aim, process, and assessment. Chapter 5 pays attention to the characterization of prediction in the methodology of research programs. Thus, it takes into account several features: (1) its pragmatic characterization, (2) the logical perspective as a proposition, (3) the epistemological component, (4) its role in the appraisal of research (...) programs, and (5) its place as a value for scientific research. -/- The notion of “novel facts” is highly relevant in his conception, where several aspects are involved: the directions of novel facts, the different kinds of novelty, and the transition from six possible options of “novel facts” to four choices. Thereafter, the prediction of novel facts as the criterion of appraisal is considered. On the one hand, this requires analyzing the theoretical, empirical, and heuristic possibilities of appraisal; and, on the other, whether there is an overemphasis on the role of prediction in methodology of scientific research programs. As a consequence, there is an analysis of Lakatos’ criterion of appraisal in MSRP and economics. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The takenforgrantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

A central question in many debates on paternalism is whether a decision analyst can ever go against the stated preference of a client, even if merely intending to improve the decisions for the client. Using four gedanken-experiments, this paper shows that this central question, so cleverly and aptly avoided by libertarian paternalism (nudge), cannot always be avoided. The four thought experiments, while purely hypothetical, serve to raise and specify the critical arguments in a maximally clear and pure manner. The first (...) purpose of the paper is, accordingly, to provide a litmus test on the readers’ stance on paternalism. We thus also survey and organize the various stances in the literature. The secondary purpose of this paper is to argue that paternalism cannot always be avoided and consumer sovereignty cannot always be respected. However, this argument will remain controversial. (shrink)

Are the recent findings of Behavioural Game Theory (BGT) on unselfish behaviours relevant for the progress of game theory? Is the methodology of BGT, centred around the attempt to study theoretically players’ utility functions in the light of the feedback that experimental evidence can produce on the theory, a satisfactory one? Or is the creation of various types of ‘social preferences’ just wasteful tinkering? This article compares BGT with the methodology of Rational Game Theory (RGT). BGT is viewed as a (...) more promising and constructive approach, with regard to the relationship between experimental data and theoretical modelling. However, I also argue that today RGT and BGT are closer to one another than often thought. (shrink)

The purpose of this essay is to provide the historian with a generic understanding of the term economy by examining some aspects of the work of the Hungarian ?economic historian? Karl Polanyi (1886?1964). It does not seek to explain Polanyi's economic ideas to economists nor does it seek to locate his ideas within the discourses of the academic discipline of economics; there is abundant academic literature which carries out those tasks. This essay is intended to help fill a void in (...) the historical understanding, especially the modern historical understanding, of the term economy, and of how the characteristics associated with it are generally understood. Yet, in reality, it is the neoclassical paradigm of economics which is typically and uncritically taken to be the touchstone for understanding the economy. This circumstance is problematic, however, when referring to the economy of societies earlier than the late nineteenth century or of societies whose culture differs radically from that of the advanced capitalist ?west.? Polanyi's insights may help historians avoid the risk of either distorting or anachronistically misunderstanding the economy of such societies. (shrink)

Economics prefers complete explanations: general over partial equilibrium, microfoundational over aggregate. Similarly, probabilistic accounts of causation frequently prefer greater detail to less as in typical resolutions of Simpson’s paradox. Strategies of causal refinement equally aim to distinguish direct from indirect causes. Yet, there are countervailing practices in economics. Representative-agent models aim to capture economic motivation but not to reduce the level of aggregation. Small structural vector-autoregression and dynamic stochastic general-equilibrium models are practically preferred to larger ones. The distinction between exogenous (...) and endogenous variables suggests partitioning the world into distinct subsystems. The tension in these practices is addressed within a structural account of causation inspired by the work of Herbert Simon’s, which defines cause with reference to complete systems adapted to deal with incomplete systems and piecemeal evidence. The focus is on understanding the constraints that a structural account of causation places on the freedom to model complex or lower-order systems as simpler or higher-order systems and on to what degree piecemeal evidence can be incorporated into a structural account. (shrink)

Engaging with the question of the extent to which the so-called human, economic or social sciences are actually sciences, this book moves away from the search for a criterion or definition that will allow us to sharply distinguish the scientific from the non-scientific. Instead, the book favours the pursuit of clarity with regard to the various enterprises undertaken by human beings, with a view to dissolving the felt need for such a demarcation. In other words, Read pursues a ‘therapeutic’ approach (...) to the issue of the status and nature of these subjects. Discussing the work of Kuhn, Winch and Wittgenstein in relation to fundamental question of methodology, Wittgenstein among the Sciences undertakes an examination of the nature of (natural) science itself, in the light of which a series of successive cases of putatively scientific disciplines are analysed. A novel and significant contribution to social science methodology and the philosophy of science and ‘the human sciences’, this book will be of interest to social scientists and philosophers, as well as to psychiatrists, economists and cognitive scientists. (shrink)

To date, economics has failed to develop a useful theory of entrepreneurship because of its inability to break out of the static equilibrium framework and the modeling of success/failure as a 0-1 variable. Entrepreneurship research also has not achieved this task due to its preoccupation with the quest for “the successful entrepreneur” and/or the successful firm. This essay calls for a new vocabulary for entrepreneurship, consisting of (1) a plural notion of the entrepreneurial process as a stream of successes and (...) failures, wherein failure management becomes the key science of entrepreneurship; (2) an effectual notion of bringing together particular entrepreneurs and particular environments through creative action; and (3) a contingent notion of aspirations that places imagination at the center stage of economics. Together, the new vocabulary allows us to ask new questions and develop new approaches that allow entrepreneurship to tackle the central task of imagination in economics, i.e., to create from the society we have to live in, the society we want to live in. (shrink)

Contents. Introduction. 1. Preliminaries. 2. Normal Form Games. 3. Extensive Games. 4. Applications of Game Theory. 5. The Methodology of Game Theory. Conclusion. Appendix. Bibliography. Index. Does game theory—the mathematical theory of strategic interaction—provide genuine explanations of human behaviour? Can game theory be used in economic consultancy or other normative contexts? Explaining Games: The Epistemic Programme in Game Theory—the first monograph on the philosophy of game theory—is an attempt to combine insights from epistemic logic and the philosophy of science to (...) investigate the applicability of game theory in such fields as economics, philosophy and strategic consultancy. I prove new mathematical theorems about the beliefs, desires and rationality principles of individual human beings, and explore in detail the logical form of game theory as it is used in explanatory and normative contexts. I argue that game theory reduces to rational choice theory if used as an explanatory device, and that game theory is nonsensical if used as a normative device. A provocative account of the history of game theory reveals that this is not bad news for all of game theory, though. Two central research programmes in game theory tried to find the ultimate characterisation of strategic interaction between rational agents. Yet, while the Nash Equilibrium Refinement Programme has done badly thanks to such research habits as overmathematisation, model-tinkering and introversion, the Epistemic Programme, I argue, has been rather successful in achieving this aim. "The 'epistemic' approach to game theory has emerged over the past twenty-five years. What is this approach? How does it differ from the conventional equilibrium-based approach to game theory? What have been its strengths and weaknesses to date? To find out, read this comprehensive and excellently written account". Adam Brandenburger, J. P. Valles Professor of Business Economics and Strategy, Stern School of Business, New York University "Reading Boudewijn de Bruin's book should be rewarding both for game theorists interested in the conceptual foundations of their discipline and for philosophers who want to learn more about formal analysis of strategic interaction. It provides an in-depth logical study of the currently dominant epistemic approaches to non-cooperative games, with an eye both to the attractions and to the serious challenges facing the Epistemic Programme". Wlodek Rabinowicz, Professor of Practical Philosophy, Department of Philosophy, Lund University . (shrink)

From the perspective of a realist philosophy of social science, the recent explosion of criticisms of mainstream economics, including reinvigorated Austrian criticism, provides what seems like a rich opportunity to join what are too often disjoined disciplinary interests and inquirers, and also to extend the arguments not only as regards the realist theory of social science, but also as regards the implications of this approach for economics. I begin with a minimum sketch of key features of realist philosophy of science (...) as I understand it. The central difference turns on the role and nature of explanation and of theory, between what is frequently termed ‘deductivism’, and on an alternative in which explanation requires the articulation of a causal mechanism, for example, the mechanism provided by molecular chemistry that gives us an understanding of oxidation. I take the position that in social science, explanation requires social causal mechanisms. I consider the Austrian contribution from this point of view and conclude with some hints regarding how the foregoing bears on our understanding of capitalism and socialism. (shrink)

Rational choice theory (RCT) models decision makers as utility maximizers and is often defended via an as-if argument. According to this argument, although real individuals do not consciously maximize their utility function, their choices can be explained as if they were generated by utility maximization. An alternative model is random-choice, which assumes that decision makers pick up an element from a given set according to a uniform distribution on the set. In this paper we examine a series of experiments that (...) compare RCT and the random-choice model as alternative explanations of consumer demand, and investigate how these experiments contribute to clarifying the actual scope of RCT and the shortcomings of the standard as-if defense of it. (shrink)

This paper focuses on Warren Nutter’s The Extent of Enterprise Monopoly in the United States, 1899-1939. This started out as a (1949) doctoral dissertation at The University of Chicago, part of Aaron Director’s Free Market Study. Besides Director, O.H. Brownlee and Milton Friedman were closely involved with supervising it. It was published by The University of Chicago Press in 1951. In the 1950s the book was explicitly understood as belonging to the “Chicago School” (Dow and Abernathy 1963). By articulating the (...) content, context, and reception of Nutter’s monograph, this paper discusses four larger themes. First, I introduce the importance of Kuhnian conceptions of science to the methodological and institutional understanding of economics in the development of a ‘Chicago’ school of economics. I do this in context of previously unpublished Stigler-Kuhn exchange. While Thomas Kuhn was widely read and adopted in the social sciences and humanities in the 1960s and 70s (and thereafter), I argue that at ‘Chicago,’ proto-Kuhnian language can be found going back to the 1940s; in those early days it is partly used to disparage the achievements of economic theorizing as promoted by others. A more self-congratulatory Kuhnian self-understanding of economics as a mature paradigm starts to get adopted around 1955 by George Stigler. One important new claim is that the later Kuhnian language gets adopted in part to divest ‘Chicago’ from its shared roots with Institutionalist economics. So, this paper contributes to a better understanding of the formation of a shared narrative at ‘Chicago.’ Second, I introduce contextual themes from Milton Friedman’s writings in the late 40s and 50s to help us understand the nature of realism at Chicago. Nutter’s dissertation helps in reading and illuminating Milton Friedman’s famous 1953 methodology paper in historical and intellectual context. Third, while this chapter notes some of the political ramifications of Chicago economics, my main aim is to help explain the manner in which Chicago attempted to chart a distinctive methodological course. This methodology has often been described as Marshallian with debts to the large-scale NBER studies. Rather than going over familiar territory, I call attention to the importance of proxies in Nutter’s empirical methodology. It is an unappreciated feature of the inductive, quantitative method that focused on the component structures of the economy that characterizes Chicago’s methodological outlook in this period. I show this by comparing Nutter’s dissertation to work done by Stigler, then at Columbia. We know from Stigler’s correspondence with Friedman that in this period they discussed methodological matters. What is less well known is that Friedman is explicitly credited for Stigler’s methodological insights in Stigler's Five Lectures at LSE. The fifth lecture, “Competition in the United States,” covers similar territory as Nutter’s project. Comparing the work by Stigler and Nutter sheds light on the nature of Chicago methodology as it was being developed away from foundations laid by Frank Knight and Henry Simons in the late 1940s and 1950s and opening up the door to (right wing) social engineering as exemplified by Harberger. I present my analysis through the published critical reception of both works among economists. A fourth reason to focus on Nutter’s dissertation is that it was featured in a Fortune magazine article in January 1952. So, it provides a useful entry into how politically important ‘Chicago’ research was marketed to a wider audience. This connects to issues explored by Phil Mirowski and his students, Rob van Horn and Eddie Nik-kah. So, Nutter’s dissertation can help us see how ‘sponsored’ research looks at ‘Chicago at the time. This is especially important because it has been claimed that Director’s Free Market Study group promoted a change from classically liberal views on monopoly, which condemned labor and employer monopolies, to a more pro-business stance. (shrink)

The debate over whether or not economics is value-free has focused on the fact-value distinction: “is” does not imply “ought.” This paper approaches the role of ethics in economics from a Thomistic perspective, focusing not on the content of economic analysis, but on the actions taken by economic researchers. Positive economics, when it satisfies Aristotle's definition of technique, enjoys a certain autonomy from ethics, an autonomy limited by a technique's dependence for guidance and justification on ethical reflection. The modern isolation (...) of technique from ultimate ends entails the risk of mistaking the proximate ends of economics for ultimate ends, especially when applying economic methods in new ways or to new social phenomena. (shrink)

When economists perform experiments, they do so typically in one of two traditions: cognitive psychology experiments in the heuristics and biases tradition (H&B-experiments) and experimental economics in the tradition of Vernon Smith. What sets these two traditions apart? In this paper, I offer a novel conceptualization of their pervasive disagreements. Focusing on how each camp approaches preferences, one of the most fundamental concepts in economics, I argue that experimental economics can be reconstructed as holding that the constituents of preferences can (...) be partially located in agents’ environments, while H&B-experiments implicitly assume that the constituents of preferences are entirely located within agents’ bodies. The paper (i) outlines how my reconstruction can account for the disagreement between the two paradigms, (ii) defends the plausibility of this reconstruction, and (iii) highlights its implications for the debate about the nature of preferences in economics. (shrink)

Different kinds of collectives help to coordinate between individuals and social groups to solve distribution problems, supply goods and services, and enable individuals to live fulfilling lives. Collectives, as part of the process of socialization, contribute to the normalization of behaviors, and consequently, structure our ability to be self-reflective autonomous agents. Contemporary philosophy of action models characterize collective action as the product of individuals who have the proper motivations to perform cooperative activities (bottom-up); or they begin with the social-level phenomena (...) and explain this in terms of individual actions and the mental states that motivate them (top-down). One general goal of this project is to show how and why both of these approaches through focusing solely on the individuals involved fail to capture and account for important types of group actions: those of economic group agents. Group agents, one kind of organized collective, are unique in that they have the potential to develop group-level decision-making processes that result in the capacity of the group to engage in practical reasoning. Because of this capacity, group agents can be stable and respond to reason--capacities we would not expect from other kinds of collectives. Inasmuch as we value the possibility of influencing the reflexive dynamics that perpetuate social institutions, understanding the range of organization structures and their agential capacities will open up the possibility of altering the course of those dynamics toward more just systems of organization. Understanding what kinds of group agents currently operate within the systems of organizations that make up social institutions is the first step in determining how to move toward developing group agents that are also moral agents. By analyzing how different systems of constraint--inside and outside the firm--inform one another to influence the possibility of design and the group's possibilities for action, I use Christian List and Philip Pettit's account of group agency as a springboard to develop a more adequate account of how structure influences and constrains the possibilities of economic group agents in non-idealized circumstances (i.e. this world, with our history). My chapters include 1) a taxonomy of organization structures and an analysis of how a narrow conception of organization structure in jurisprudence can lead to systems of constraint that limit the rights and freedoms of individuals even as it seeks to extend them, 2) an evaluation of the popular accounts of collective action (cf. Raimo Tuomela, 1997; Michael Bratman, 1993, 1997, 2009; and Christian List and Philip Pettit, 2011) that could be made to accommodate the actions of certain kinds of economic associations, 3) an exploration of the standards of evaluation that influence these powerful group agents, and how these standards limit the economic group agent's capacity to engage in moral reasoning, and 4) an analysis of the group agent's reasoning capacity and the internal mode of interaction between group agent and group members that perpetuate group agency. I argue that we can understand group agents that have the capacity to be moral agents as the products of a particular kind of decision-making process within an organization's structure. The decision-making process, together with the organization structure and group member support, produces and sustains judgments and actions at the level of the group that cannot be reduced to the beliefs and actions of particular members. In this way, the group displays a systematic unity of actions based on its own judgments. That is, the group exhibits agency. Moral group agents exhibit more than practical reasoning; they also demonstrate the capacity for critical reflection upon the ends they pursue. Member buy-in promotes a tight connection between group members and their role in bringing about and sustaining group agency, and is the foundation of the group agent. Without a holistic organization structure, a member's personal identities could undermine group aims, thereby undermining group agency. Group moral agency, I argue, begins with promoting an organizational way of life conducive to collective flourishing and respect for members. (shrink)

We report general and consensus results of a survey administered to a defined population of economic science academics in Mexico. Our results include insights on economic opinions, scientific aspects of economics, scientific activities, countries' economic performances and methodological orientation. Our outcomes show areas of consensus which, at least partially, are consistent with findings in previous studies. Comparisons between our results and those of other studies suggest that consensus could be constant over time and that economics academics in Mexico seems to (...) show similar levels of skepticism about the importance of rationality assumption as those in other latitudes. (shrink)

The purpose of the article is to encourage (and in certain ways to initiate) an intellectual debate on how business schools can meet the intellectual challenge resulting from the financial crisis. We argue that this will involve questioning the traditional paradigms of management research, will require broadening the intellectual foundation of business school activities, and will trigger revision processes to incorporate the derived learning points into degree and non-degree programs. European business schools have to cope with these challenges during a (...) phase of intense financial pressures, which may create the temptation of adopting myopic development strategies. The points made in this article may appear to be explicitly prescriptive, but they should be taken as an attempt to foster an open debate on the issues vital for the future development of the business school sector. (shrink)

Van Fraassen argues that data provide the target-end structures required by structuralist accounts of scientific representation. But models represent phenomena not data. Van Fraassen agrees but argues that there is no pragmatic difference between taking a scientific model to accurately represent a physical system and accurately represent data extracted from it. In this article I reconstruct his argument and show that it turns on the false premise that the pragmatic content of acts of representation include doxastic commitments.

El artículo muestra la forma en que laepistemología de las virtudes puederesolver algunos de los problemasepistemológicos clásicos, y la manera enque puede lograrse una concepciónintegrada de las variantes confiabilistay responsabilista de la epistemología delas virtudesThis paper shows the way in which Virtue Epistemology can solve some ofthe classical epistemological problems,and the way in which an integrated approach of the Reliabilist and Responsibilist variants of Virtue Epistemology can be achieved.

Theories of social capital are popular because they claim to insulate society against both the coercion of states and the individualism of markets, as well as to better explain social prosperity and economic performance. But in fact laws, citizenship rights, compulsory associations and political institutions do a much better job of the former, while large-scale civic movements, like Poland’s Solidarity, with demonstrable impacts on the configuration of political power, are the historic keys to democratic prosperity and social confidence.

This article is about the relationship between business and ethics in academic research. The purpose of this investigation is to examine the status of the separation and the integration theses. In the course of this article, I defend the claim that neither separation nor integration is entirely accurate; indeed they are both potentially confusing to our audience. A strategy of reconciliation of normative and descriptive approaches is proposed. The reconciliation project does not entail synthesizing or dividing prescriptive and empirical approaches, (...) but rather respecting the identity of both inquiries, while recognizing the limitations they place on each other. The research agenda of the reconciliation project is discussed. (shrink)

A central point of debate over environmental policies concerns how future costs and benefits should be assessed. The most commonly used method for assessing the value of future costs and benefits is economic discounting. One often-cited justification for discounting is uncertainty. More specifically, it is risk aversion coupled with the expectation that future prospects are more risky. In this paper I argue that there are at least two reasons for disputing the use of risk aversion as a justification for discounting (...) when dealing with longterm decisions, one technical and one ethical. Firstly, I argue that technically, it implies an inconsistency between theory and practice. And secondly, I argue that discounting for uncertainty relies on a form of individualism which, while reasonable in standard microeconomic theory where an agent chooses how to spread her own consumption over her own lifetime, is inappropriate in the context of intergenerational social decisions. (shrink)

Despite inroads made by critical realism against the ‘scientific method’ in social science, the latter remains strong in subject-areas like human resource management. One argument for the alleged superiority of the scientific method lies in the taken-for-granted belief that it alone can formulate empirically testable predictions. Many of those who employ the scientific method are, however, confused about the way they understand and practice prediction. This paper takes as a case study empirical research on the alleged empirical association between human (...) resource management practices and organisational performance. By unpacking the confusion surrounding the two basic notions of prediction used, it reveals what is wrong with them, why the scientific method cannot actually make accurate predictions and why, therefore, the scientific method fails to meet its own criteria for scientificity. Finally, explanation is considered in order to prevent any confusion between it and prediction and to offer what we call tendential prediction. (shrink)

Social identity poses one of the most important challenges to rational choice theory, but rational choice theorists do not hold a common position regarding identity. On one hand, externalist rational choice ignores the concept of identity or reduces it to revealed preferences. On the other hand, internalist rational choice considers identity as a key concept in explaining social action because it permits expressive motivations to be included in the models. However, internalist theorists tend to reduce identity to desire—the desire of (...) a person to express his or her social being. From an internalist point of view, that is, from a viewpoint in which not only desires but also beliefs play a key role in social explanations as mental entities, this article rejects externalist reductionism and proposes a redefinition of social identity as a net of beliefs about oneself, beliefs that are indexical, robust, and socially shaped. (shrink)

Like other mathematically intensive sciences, economics is becoming increasingly computerized. Despite the extent of the computation, however, there is very little true simulation. Simple computation is a form of theory articulation, whereas true simulation is analogous to an experimental procedure. Successful computation is faithful to an underlying mathematical model, whereas successful simulation directly mimics a process or a system. The computer is seen as a legitimate tool in economics only when traditional analytical solutions cannot be derived, i.e., only as a (...) purely computational aid. We argue that true simulation is seldom practiced because it does not fit the conception of understanding inherent in mainstream economics. According to this conception, understanding is constituted by analytical derivation from a set of fundamental economic axioms. We articulate this conception using the concept of economists' perfect model. Since the deductive links between the assumptions and the consequences are not transparent in ‘bottom‐up’ generative microsimulations, microsimulations cannot correspond to the perfect model and economists do not therefore consider them viable candidates for generating theories that enhance economic understanding. (shrink)

In this paper, we examine the viability of avoiding value judgments encoded in thick concepts when these concepts are used in economic theories. We focus on what implications the use of such thick concepts might have for the tenability of the fact/value dichotomy in economics. Thick concepts have an evaluative and a descriptive component. Our suggestion is that despite attempts to rid thick concepts of their evaluative component, economists are often not successful. We focus on the strategy of explication to (...) remove the evaluative component of thick concepts and argue that often economists either have to make value judgments or are unable to individuate out the phenomenon under analysis. We support our claim with a case study, namely the concept of addiction in Gary Becker and Kevin Murphy’s Theory of Rational Addiction (1988). One consequence of our analysis is that theories containing thick concepts could commit economists to making value judgments and as such undermine the fact/value dichotomy. (shrink)

This open access book provides an exploration of the consequences of the ontological differences between natural and social objects (sometimes described as objects of nature and objects of thought) in the workings of causal and agency relationships. One of its important and possibly original conclusions is that causal and agency relationships do not encompass all of the dependent relationships encountered in social life. The idea that social reality is contingent has been known (and largely undisputed) at least since Wittgenstein’s “On (...) Certainty”, but social science, and most notably economics has continued to operate on the basis of causal and agency theories borrowed or adapted from the natural sciences. This volume contains essays that retain and justify the partial or qualified use of this approach and essays that totally reject any use of causal and agency theory built on determined facts (closed systems).The rejection is based on the possibly original claim that, whereas causation in the objects of the natural sciences reside in their properties, human action is a matter of intentionality. It engages with critical realist theory and re-examines the role of free will in theories of human action in general and economic theory in particular. (shrink)

In putting forth a view of economic agents as autonomous individuals driven by self-interest, mainstream economics precludes the possibility of gift. Gift could be found in non-market, “collectivist”, societies, where “informal” norms would include gift-giving. In this context, the paper argues that mainstream views regarding the impossibility of the concept of gift are inaccurate, via an analysis of conceptual and empirical contributions of other social sciences, notably sciences of mankind “par excellence” such as anthropology and philosophy. In particular, the paper (...) shows that critiques of mainstream views that are based on simple contrasts and qualifications do not provide conceptual instruments for a rigorous critique. This is also the case with the more “heterodox” views that underscore the unrealistic character of mainstream models of social interactions and norms. The mainstream arguments of self-interest and exchanges, based on expectations of future returns as universal traits of human beings, are indeed not easy to refute, including with the conceptual tools of other social sciences. This paper instead argues that a deeper analysis of concepts such as selfishness, interest, exchange, or the individual yields a more relevant critique of mainstream conceptions of gift—“the interest of whom?” and “exchange shaped by what?” being the pertinent questions. Other social sciences show that these concepts actually always presuppose the pre-existence of societies before that of individuals, and this is expressed by the many facets of the conceptualisations of the act of giving, whether societies are market or non-market ones. (shrink)

In this paper we attempt to show that rhetoric plays an important role in economics as a science and in economy as a social system. Our task is rather demonstrative, but it aims at stripping away the illusion that economics has acquired a status equal to the natural sciences, in which there is no place for subjectivism and ambiguity. Economics belongs, after all, to the realm of the social sciences and as such it is subject to the limitations of human (...) cognition and understanding. We show that economics as a science is not free from employing sophisticated methods of persuasion and rhetoric. Next, we also try to demonstrate that rhetoric can be a useful tool in creating economic reality. It does not have influence on economic processes per se, but it is helpful in constructing an institutional architecture of the economy by influencing public opinion and decision makers. (shrink)

This study addresses a fundamental concern of research on economic ethics by examining the values of economics. While other studies have linked the study of economics to the adoption of rational economic behavior, this study goes one level deeper, investigating the values that underpin neoclassical economics and whether they are transmitted to students. We find that the study of economics is associated with an increase in hedonism and power values, a decrease self-direction value, and possibly a decrease in universalism value. (...) We measure value change among economics students using a quasi-experimental research design in accordance with the methodology of research on academic socialization. We discuss the practical implications of the internalization of economic values. (shrink)

The present work is a review of the early literature on "reflexive prediction" - the notion that public predictions by policymakers may influence and affect the social systems the predictions are made in relation to - in the disciplines of sociology and economics. It is a relatively complete treatment for the time period that it covers. It is intended for attachment to my January 2006 doctoral thesis as "Appendix B.".

This article argues that evolutionary models based on selection validate, under appropriate conditions, the relevance of optimality as an explanatory mechanism in rational choice theory. The reason is that these frameworks share the mechanism that drives the results, namely, optimization, even if they situate it at different levels. The consequences of our argument are twofold. First, it resolves the tension between those predictions of rational choice theory that are accurate and the evidence showing that individuals seldom optimize. Second, it relativizes (...) the explanatory import of rationality without diminishing the role of optimization as a mechanism. (shrink)

This article addresses some recent tendencies in economic methodology defined as a philosophy of science for economics. I review the problem of normative/positive distinction in methodology and argue that normativity in its past forms is intolerable today but is, at the same time, indispensable for methodological inquiry. Using recent texts by Mirowski and Nik-Khah and by Alexandrova and Northcott on the applications of auction theory as a case study, I compare in more detail various approaches to economic methodology inspired by (...) the science and technology studies (STS) and philosophy of science literatures, respectively. On the basis of this comparison, I show that the STS programme in economic methodology may prove fruitful in the future, but there is still a place for more aprioristic philosophical thinking. Methodology and history of economics also play a fundamental role that goes beyond the descriptive analysis of STS and offer conceptual clarification paired with normative concerns provided by philosophers of science. (shrink)

Achieving an ambitious goal frequently requires succeeding in a sequence of intermediate tasks, some being critical for the final outcome, and others not. However, individuals are not always able to provide a level of effort sufficient to guarantee success in all such intermediate tasks. The ability to manage effort throughout the sequence of tasks is, therefore, critical when resources are limited. In this paper, we propose a criterion of importance that is person- and context-specific, as it is based on how (...) an individual should optimally allocate a limited stock of exhaustible efforts over tasks. We test this importance criterion in a laboratory experiment that reproduces the main features of a tennis match. We show that our importance criterion is able to predict the individuals’ performance and it outperforms the Morris-importance criterion that defines the importance of a point in terms of its impact on the probability of achieving the final outcome. (shrink)

For much economics research, ethics committee approval is not required. This is seen by some as indicating that there are no ethical issues in economics research. However, ethical research requires more than simply meeting regulatory requirements. If economics research has an impact on perceptions and resulting decisions, then there may be concerns about the nature of the research and its impact. There are a number of arguments that could be raised as to why economics does not describe the real world. (...) What we see is shaped by how we see, so it is important to consider context. This paper considers the simplification that is an inevitable aspect of research. Implications for economic approaches are described, recognising that criticisms can apply to heterodox as well as mainstream approaches. Subjectivity is then discussed, questioning the traditional positive-normative distinction. An additional section relates to the application of economics. It focuses on the significance of rhetoric and the differing roles played by economists, each of which may have their own obligations and expectations. A theme throughout the paper is that of groups and group membership shaping perceptions and behaviour. The paper concludes that there are ethical issues in relation to both how and why economists undertake their work. Read the Open Peer Discussion on this paper » Read the discussion of this paper on the WEA's Ethics conference ». (shrink)

Mark Blaug's contributions to economics were many and significant. This essay provides a review of Mark Blaug: Rebel with Many Causes, edited by Marcel Boumans and Matthias Klaes, which collects papers from a set of conferences organized in Blaug's memory.

ABSTRACT Nassim Taleb rightly points out that although people may acknowledge in the abstract that the world is uncertain, they still behave as if a large enough sample size is all that is needed to predict, and model, the future. He also rightly notes that ever?increasing quantities of information are relevant only in simple situations, such as in predicting the range of human height, but are misleading in more random arenas, such as financial markets. However, while Taleb decries the use (...) of narratives for falsely forcing the facts to fit a given story, we need narratives in order to make sense of a complex world. Further, Taleb fails to take sufficient heed of the fact that human narratives themselves become objects that act on subjects in an ever?increasing web of complexity. (shrink)

Studies in economics and humanities generally have intrinsic problems that this work illustrates, along with innovations for overcoming them. The main limitations and weak-points of orthodox theory necessitate the use in their stead of other multi-disciplinary approaches, like complexity science, agent-based simulations and artificial life simulations. An example of an artificial life simulation applied in the economics field concerning the exchange process shows the benefits of such new conceptual and methodological instruments.

The main thesis of this paper is that the empirical success of Keynesianism shows it to be scientific. Keynesianism here refers not to a specific theory, but to a paradigm. It is argued that Kuhn's notion of paradigm can be applied to economics, but, in contrast to the natural sciences, in economics there are always competing paradigms. The principal ones in contemporary economics are the Neoclassical, Keynesian and Marxist. To investigate whether the Keynesian paradigm is scientific we need a criterion (...) for the scientificity of a paradigm. The paper first considers one approach to this problem due to Kant, but this is rejected as incorrect and called 'the Kantian fallacy'. Another approach is then put forward: 'the empirical confirmation principle', and reasons are given for accepting this as correct. Using this principle, it is then argued that that Keynesianism is indeed scientific. (shrink)