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The Methodology of Experimental Economics

Cambridge University Press (2005)

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  1. Special issue on “experimental economics and the social embedding of economic behaviour and cognition”: Introductory article: the implication of social cognition for experimental economics.Christophe Heintz & Nicholas Bardsley - 2010 - Mind and Society 9 (2):113-118.
    Can human social cognitive processes and social motives be grasped by the methods of experimental economics? Experimental studies of strategic cognition and social preferences contribute to our understanding of the social aspects of economic decisions making. Yet, papers in this issue argue that the social aspects of decision-making introduce several difficulties for interpreting the results of economic experiments. In particular, the laboratory is itself a social context, and in many respects a rather distinctive one, which raises questions of external validity.
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  • Trust, inequality and the market.Shaun P. Hargreaves Heap, Jonathan H. W. Tan & Daniel John Zizzo - 2013 - Theory and Decision 74 (3):311-333.
    This article examines, experimentally, whether inequality affects the social capital of trust in non-market and market settings. We consider three experimental treatments, one with equality, one with inequality but no knowledge of the income of other agents, and one with inequality and knowledge. Inequality, particularly when it is known, has a corrosive effect on trusting behaviours in this experiment. Agents appear to be less sensitive to known relative income differentials in markets than they are in the non-market settings, but trust (...)
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  • Orthodox and heterodox economics in recent economic methodology.D. Wade Hands - 2015 - Erasmus Journal for Philosophy and Economics 8 (1):61.
    This paper discusses the development of the field of economic methodology during the last few decades emphasizing the early influence of the "shelf" of Popperian philosophy and the division between neoclassical and heterodox economics. It argues that the field of methodology has recently adopted a more naturalistic approach focusing primarily on the "new pluralist" subfields of experimental economics, behavioral economics, neuroeconomics, and related subjects.
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  • Paradigmatic experiments: The ultimatum game from testing to measurement device.Francesco Guala - 2008 - Philosophy of Science 75 (5):658-669.
    The Ultimatum Game is one of the most successful experimental designs in the history of the social sciences. In this article I try to explain this success—what makes it a “paradigmatic experiment”—stressing in particular its versatility. Despite the intentions of its inventors, the Ultimatum Game was never a good design to test economic theory, and it is now mostly used as a heuristic tool for the observation of nonstandard preferences or as a “social thermometer” for the observation of culture‐specific norms. (...)
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  • Has Game Theory Been Refuted?Francesco Guala - 2006 - Journal of Philosophy 103 (5):239-263.
    The answer in a nutshell is: Yes, five years ago, but nobody has noticed. Nobody noticed because the majority of social scientists subscribe to one of the following views: (1) the ‘anomalous’ behaviour observed in standard prisoner’s dilemma or ultimatum game experiments has refuted standard game theory a long time ago; (2) game theory is flexible enough to accommodate any observed choices by ‘refining’ players’ preferences; or (3) it is just a piece of pure mathematics (a tautology). None of these (...)
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  • Cooperation in and out of the lab: a comment on Binmore’s paper. [REVIEW]Francesco Guala - 2010 - Mind and Society 9 (2):159-169.
    The disagreement between Binmore and the “behaviouralists” concerns mainly the kind of reciprocity mechanisms that sustain cooperation in and out of the experimental laboratory. Although Binmore’s scepticism concerning Strong Reciprocity is justified, his case for Weak Reciprocity and the long-run convergence to Nash equilibria is unsupported by laboratory evidence. Part of the reason is that laboratory evidence alone cannot solve the reciprocity controversy, and researchers should pay more attention to field data. As an example, I briefly illustrate a historical case (...)
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  • Reflections on the 2017 Nobel Memorial Prize Awarded to Richard Thaler.Till Grüne-Yanoff - 2017 - Erasmus Journal for Philosophy and Economics 10 (2):61-75.
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  • Isolation Is Not Characteristic of Models.Till Grüne-Yanoff - 2011 - International Studies in the Philosophy of Science 25 (2):119-137.
    Modelling cannot be characterized as isolating, nor models as isolations. This article presents three arguments to that effect, against Uskali Mäki's account of models. First, while isolation proceeds through a process of manipulation and control, modelling typically does not proceed through such a process. Rather, modellers postulate assumptions, without seeking to justify them by reference to a process of isolation. Second, while isolation identifies an isolation base—a concrete environment it seeks to control and manipulate—modelling typically does not identify such a (...)
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  • Epistemological Issues Concerning Computer Simulations in Science and Their Implications for Science Education.Ileana M. Greca, Eugenia Seoane & Irene Arriassecq - 2014 - Science & Education 23 (4):897-921.
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  • Mind/Brain and Economic Behaviour: For a Naturalised Economics.Mario Graziano - 2019 - Axiomathes 29 (3):237-264.
    Neuroeconomics is a science pledged to tracing the neurobiological correlates involved in decision-making, especially in the case of economic decisions. Despite representing a recent research field that is still identifying its research objects, tools and methods, its epistemological scope and scientific relevance have already been openly questioned by several authors. Among these critics, the most influential names in the debate have been those of Faruk Gul and Wolfgang Pesendorfer, who claim that the data on neural activity cannot find place in (...)
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  • The social structure of cooperation and punishment.Herbert Gintis & Ernst Fehr - 2012 - Behavioral and Brain Sciences 35 (1):28-29.
    The standard theories of cooperation in humans, which depend on repeated interaction and reputation effects among self-regarding agents, are inadequate. Strong reciprocity, a predisposition to participate in costly cooperation and the punishment, fosters cooperation where self-regarding behaviors fail. The effectiveness of socially coordinated punishment depends on individual motivations to participate, which are based on strong reciprocity motives. The relative infrequency of high-cost punishment is a result of the ubiquity of strong reciprocity, not its absence.
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  • Neural Findings and Economic Models: Why Brains Have Limited Relevance for Economics.Roberto Fumagalli - 2014 - Philosophy of the Social Sciences 44 (5):606-629.
    Proponents of neuroeconomics often argue that better knowledge of the human neural architecture enables economists to improve standard models of choice. In their view, these improvements provide compelling reasons to use neural findings in constructing and evaluating economic models. In a recent article, I criticized this view by pointing to the trade-offs between the modeling desiderata valued by neuroeconomists and other economists, respectively. The present article complements my earlier critique by focusing on three modeling desiderata that figure prominently in economic (...)
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  • On the Individuation of Choice Options.Roberto Fumagalli - 2020 - Philosophy of the Social Sciences 50 (4):338-365.
    Decision theorists have attempted to accommodate several violations of decision theory’s axiomatic requirements by modifying how agents’ choice options are individuated and formally represented. In recent years, prominent authors have worried that these modifications threaten to trivialize decision theory, make the theory unfalsifiable, impose overdemanding requirements on decision theorists, and hamper decision theory’s internal coherence. In this paper, I draw on leading descriptive and normative works in contemporary decision theory to address these prominent concerns. In doing so, I articulate and (...)
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  • Economics, Psychology, and the Unity of the Decision Sciences.Roberto Fumagalli - 2016 - Philosophy of the Social Sciences 46 (2):103-128.
    In recent years, several authors have reconstructed the relationship between 20th-century economic theory and neuro-psychological research in terms of a three-stage narrative of initial unity, increasing separation, and ongoing reunification. In this article, I draw on major developments in economic theory and neuro-psychological research to provide a descriptive and normative critique of this reconstruction. Moreover, I put forward a reconstruction of the relationship between economics and neuro-psychology that, I claim, better fits both the available empirical evidence and the methodological foundations (...)
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  • The philosophy of simulation: hot new issues or same old stew?Roman Frigg & Julian Reiss - 2009 - Synthese 169 (3):593-613.
    Computer simulations are an exciting tool that plays important roles in many scientific disciplines. This has attracted the attention of a number of philosophers of science. The main tenor in this literature is that computer simulations not only constitute interesting and powerful new science , but that they also raise a host of new philosophical issues. The protagonists in this debate claim no less than that simulations call into question our philosophical understanding of scientific ontology, the epistemology and semantics of (...)
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  • The philosophy of simulation: hot new issues or same old stew?Roman Frigg & Julian Reiss - 2011 - Synthese 180 (1):77-77.
    Computer simulations are an exciting tool that plays important roles in many scientific disciplines. This has attracted the attention of a number of philosophers of science. The main tenor in this literature is that computer simulations not only constitute interesting and powerful new science, but that they also raise a host of new philosophical issues. The protagonists in this debate claim no less than that simulations call into question our philosophical understanding of scientific ontology, the epistemology and semantics of models (...)
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  • Hiding Behind Machines: Artificial Agents May Help to Evade Punishment.Till Feier, Jan Gogoll & Matthias Uhl - 2022 - Science and Engineering Ethics 28 (2):1-19.
    The transfer of tasks with sometimes far-reaching implications to autonomous systems raises a number of ethical questions. In addition to fundamental questions about the moral agency of these systems, behavioral issues arise. We investigate the empirically accessible question of whether the imposition of harm by an agent is systematically judged differently when the agent is artificial and not human. The results of a laboratory experiment suggest that decision-makers can actually avoid punishment more easily by delegating to machines than by delegating (...)
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  • Data quality, experimental artifacts, and the reactivity of the psychological subject matter.Uljana Feest - 2022 - European Journal for Philosophy of Science 12 (1):1-25.
    While the term “reactivity” has come to be associated with specific phenomena in the social sciences, having to do with subjects’ awareness of being studied, this paper takes a broader stance on this concept. I argue that reactivity is a ubiquitous feature of the psychological subject matter and that this fact is a precondition of experimental research, while also posing potential problems for the experimenter. The latter are connected to the worry about distorted data and experimental artifacts. But what are (...)
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  • Unfolding in the empirical sciences: experiments, thought experiments and computer simulations.Rawad El Skaf & Cyrille Imbert - 2013 - Synthese 190 (16):3451-3474.
    Experiments (E), computer simulations (CS) and thought experiments (TE) are usually seen as playing different roles in science and as having different epistemologies. Accordingly, they are usually analyzed separately. We argue in this paper that these activities can contribute to answering the same questions by playing the same epistemic role when they are used to unfold the content of a well-described scenario. We emphasize that in such cases, these three activities can be described by means of the same conceptual framework—even (...)
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  • Are moral norms distinct from social norms? A critical assessment of Jon Elster and Cristina Bicchieri.Benoît Dubreuil & Jean-François Grégoire - 2013 - Theory and Decision 75 (1):137-152.
    This article offers a critical assessment of Cristina Bicchieri and Jon Elster’s recent attempt to distinguish between social, moral, and quasi-moral norms. Although their typologies present interesting differences, they both distinguish types of norms on the basis of the way in which context, and especially other agents’ expectations and behavior, shapes one’s preference to comply with norms. We argue that both typologies should be abandoned because they fail to capture causally relevant features of norms. We nevertheless emphasize that both Bicchieri (...)
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  • Examining punishment at different explanatory levels.Miguel dos Santos & Claus Wedekind - 2012 - Behavioral and Brain Sciences 35 (1):23-24.
    Experimental studies on punishment have sometimes been over-interpreted not only for the reasons Guala lists, but also because of a frequent conflation of proximate and ultimate explanatory levels that Guala's review perpetuates. Moreover, for future analyses we may need a clearer classification of different kinds of punishment.
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  • Realistic realism about unrealistic models.Uskali Mäki - 2009 - In Harold Kincaid & Don Ross (eds.), The Oxford Handbook of Philosophy of Economics. Oxford University Press.
    My philosophical intuitions are those of a scientific realist. In addition to being realist in its philosophical outlook, my philosophy of economics also aspires to be realistic in the sense of being descriptively adequate, or at least normatively non-utopian, about economics as a scientific discipline. The special challenge my philosophy of economics must meet is to provide a scientific realist account that is realistic of a discipline that deals with a complex subject matter and operates with highly unrealistic models. Unrealisticness (...)
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  • Progress in economics: Lessons from the spectrum auctions.Anna Alexandrova & Robert Northcott - 2009 - In Harold Kincaid & Don Ross (eds.), The Oxford Handbook of Philosophy of Economics. Oxford University Press. pp. 306--337.
    The 1994 US spectrum auction is now a paradigmatic case of the successful use of microeconomic theory for policy-making. We use a detailed analysis of it to review standard accounts in philosophy of science of how idealized models are connected to messy reality. We show that in order to understand what made the design of the spectrum auction successful, a new such account is required, and we present it here. Of especial interest is the light this sheds on the issue (...)
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  • Game theory.Don Ross - 2008 - Stanford Encyclopedia of Philosophy.
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  • Philosophy of economics.Daniel M. Hausman - 2008 - Stanford Encyclopedia of Philosophy.
    This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.
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  • Between Isolations and Constructions: Economic Models as Believable Worlds.Lukasz Hardt - 2016 - Poznan Studies in the Philosophy of the Sciences and the Humanities 106.
    As the title of this essay suggests, my concern is with the issue of what are economic models. However, the goal of the paper is not to offer an in-depth study on multiple approaches to modelling in economics, but rather to overcome the dichotomical divide between conceptualizing models as isolations and constructions. This is done by introducing the idea of economic models as believable worlds, precisely descriptions of mechanisms that refer to the essentials of the modelled targets. In doing so (...)
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  • A verisimilitudinarian analysis of the Linda paradox.Gustavo Cevolani, Vincenzo Crupi & Roberto Festa - 2012 - VII Conference of the Spanish Society for Logic, Methodology and Philosphy of Science.
    The Linda paradox is a key topic in current debates on the rationality of human reasoning and its limitations. We present a novel analysis of this paradox, based on the notion of verisimilitude as studied in the philosophy of science. The comparison with an alternative analysis based on probabilistic confirmation suggests how to overcome some problems of our account by introducing an adequately defined notion of verisimilitudinarian confirmation.
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  • Science and Values: A philosophical perspective on the justifiability of evidence based policymaking.Osman Dede - 2021 - Dissertation, Erasmus Institute for Philosophy and Economics
    Science is widely regarded as the most reliable epistemic source of providing knowledge about the world. Policymakers intend to make purposeful changes in the world. The practice of policymakers relying on scientific experts to make informed decisions about which policies to implement is called Evidence Based Policymaking. This thesis provides a perspective from the philosophy of science in order to discuss the justifiability of Evidence Based Policymaking (EBP) with respect to broadly democratic and liberal values. Justifying EBP with broadly democratic (...)
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  • Abstracting matter.Susan Sterrett - unknown
    . Some disagreements have arisen in the last few years regarding the role played by material properties when modeling, simulating and experimenting on physical systems (Morrison 2008, Parker (forthcoming), Winsberg (forthcoming), Guala 2002, 2005; Morgan 2005). The question has proven more involved than it first appears. A number of significant and correct points have already been made, but some confusions remain. In this paper I attempt to sort them out. After pointing out the importance of some distinctions that need to (...)
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  • Philosophical foundations of neuroeconomics: economics and the revolutionary challenge from neuroscience.Roberto Fumagalli - 2011 - Dissertation, London School of Economics
    This PhD thesis focuses on the philosophical foundations of Neuroeconomics, an innovative research program which combines findings and modelling tools from economics, psychology and neuroscience to account for human choice behaviour. The proponents of Neuroeconomics often manifest the ambition to foster radical modifications in the accounts of choice behaviour developed by its parent disciplines. This enquiry provides a philosophically informed appraisal of the potential for success and the relevance of neuroeconomic research for economics. My central claim is that neuroeconomists can (...)
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  • Experimental Design: Ethics, Integrity and the Scientific Method.Jonathan Lewis - 2020 - In Ron Iphofen (ed.), Handbook of Research Ethics and Scientific Integrity. Cham, Switzerland: pp. 459-474.
    Experimental design is one aspect of a scientific method. A well-designed, properly conducted experiment aims to control variables in order to isolate and manipulate causal effects and thereby maximize internal validity, support causal inferences, and guarantee reliable results. Traditionally employed in the natural sciences, experimental design has become an important part of research in the social and behavioral sciences. Experimental methods are also endorsed as the most reliable guides to policy effectiveness. Through a discussion of some of the central concepts (...)
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  • Francesco Guala: The Methodology of Experimental Economics.David Teira Serrano - unknown
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  • Decision Sciences and the New Case for Paternalism: Three Welfare-Related Justificatory Challenges.Roberto Fumagalli - 2016 - Social Choice and Welfare 47 (2):459-480.
    Several authors have recently advocated a so-called new case for paternalism, according to which empirical findings from distinct decision sciences provide compelling reasons in favour of paternalistic interference. In their view, the available behavioural and neuro-psychological findings enable paternalists to address traditional anti-paternalistic objections and reliably enhance the well-being of their target agents. In this paper, I combine insights from decision-making research, moral philosophy and evidence-based policy evaluation to assess the merits of this case. In particular, I articulate and defend (...)
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  • Experimentele filosofie, kunstmatige intelligentie en cognitieve neurowetenschap.Pim Haselager - 2010 - Algemeen Nederlands Tijdschrift voor Wijsbegeerte 102 (1):49-58.
    English: In this paper I indicate why I consider 'experimental philosophy' to be good news, though not as good as it could be, and not as all that new. I'll argue that there is no need to restrict experimental philosophy to eliciting intuitions through questionnaires. I'll indicate that good examples of experimental philosophy already exist in Artificial Intelligence and Cognitive Neuroscience. Dutch: Hieronder wil ik proberen aan te geven waarom ik de experimentele filosofie weliswaar als goed nieuws beschouw, maar niet (...)
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  • Philosophy and Economics.D. Wade Hands - 2008 - In S. N. Durlauf & L. E. Blume (eds.), The New Palgrave Dictionary of Economics, 2nd edition. Palgrave. pp. 410-420.
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  • Rethinking the interpretivism versus naturalism debate in the philosophy of social science.Daniel Steel - manuscript
    The naturalism versus interpretivism debate in social science is traditionally framed as the question of whether social science should attempt to emulate the methods of natural science. I argue that this manner of formulating the issue is problematic insofar as it presupposes an implausibly strong unity of method among the natural sciences. I propose instead that the core question of the debate is the extent to which reliable causal inference is possible in social science, a question that cannot be answered (...)
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  • Epistemic virtues and theory choice in economics.Ivan Moscati - unknown
    When economists have to choose between competing theories, they evaluate not only the theories’ empirical relevance, but also qualities like their simplicity, tractability, parsimony and unifying power. These are called the epistemic virtues of a theory. The present paper proposes a formal definition for some epistemic virtues and investigates their role for theory choice in economics.
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  • Experimental Economics for Philosophers.Hannah Rubin, Cailin O'Connor & Justin Bruner - unknown
    Recently, game theory and evolutionary game theory - mathematical frameworks from economics and biology designed to model and explain interactive behavior - have proved fruitful tools for philosophers in areas such as ethics, philosophy of language, social epistemology, and political philosophy. This methodological osmosis is part of a trend where philosophers have blurred disciplinary lines to import the best epistemic tools available. In this vein, experimental philosophers have drawn on practices from the social sciences, and especially from psychology, to expand (...)
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  • Philosophical and ethical aspects of economic design.Philippe van Basshuysen - 2019 - Dissertation, London School of Economics and Political Science
    This thesis studies some philosophical and ethical issues that economic design raises. Chapter 1 gives an overview of economic design and argues that a crossfertilisation between philosophy and economic design is possible and insightful for both sides. Chapter 2 examines the implications of mechanism design for theories of rationality. I show that non-classical theories, such as constrained maximization and team reasoning, are at odds with the constraint of incentive compatibility. This poses a problem for non-classical theories, which proponents of these (...)
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  • Experiments in the social sciences: The relationship between external and internal validity.Maria Jimenez-Buedo & Luis M. Miller - unknown
    The article identifies a latent debate in the recent literature on the role and worth of experiments in economics and other social sciences concerning the relationship between the external and the internal validity of experimental designs. Our work identifies two incompatible views regarding the relationship between internal and external validity of experiments. While in the methodological literature references to the idea that there is a trade-off between the internal and external validity of experiments abound, this view coexists with the position (...)
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  • What Experimental Economics Teaches Us About Models. [REVIEW]Anna Alexandrova - 2008 - Journal of Economic Methodology 15:197-204.
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  • Hayek in the lab. Austrian School, game theory, and experimental economics.Gustavo Cevolani - 2011 - Logic and Philosophy of Science 9 (1):429-436.
    Focusing on the work of Friedrich von Hayek and Vernon Smith, we discuss some conceptual links between Austrian economics and recent work in behavioral game theory and experimental economics. After a brief survey of the main methodological aspects of Austrian and experimental economics, we suggest that common views on subjectivism, individualism, and the role of qualitative explanations and predictions in social science may favour a fruitful interaction between these two research programs.
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  • Naturalism and the Enlightenment ideal : rethinking a central debate in the philosophy of social science.Daniel Steel & S. Kedzie Hall - 2010 - In P. D. Magnus & Jacob Busch (eds.), New Waves in Philosophy of Science. Palgrave-Macmillan.
    The naturalism versus interpretivism debate the in philosophy of social science is traditionally framed as the question of whether social science should attempt to emulate the methods of natural science. I show that this manner of formulating the issue is problematic insofar as it presupposes an implausibly strong unity of method among the natural sciences. I propose instead that what is at stake in this debate is the feasibility and desirability of what I call the Enlightenment ideal of social science. (...)
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