It has been argued that the explanation of self-control requires positing special motivational powers. Some think that we need will-power as an irreducible mental faculty; others that we need to think of the active self as a dedicated and depletable pool of psychic energy or – in today more respectable terminology – mental resources; finally, there is the idea that self-control requires postulating a deep division between reason and passion – a deliberative and an emotional motivational system. This essay argues (...) that no such special motivational powers are necessary. Yet, at the same time, self-control does powerfully illustrate the importance of a feature of the mind. What it illustrates, I argue, is the importance of the mental activity of attention in the control of all action. It is by appeal to this mental activity that we can dispense with special motivational powers. If we think of Humeanism as the view that there is fundamentally only one kind of motivational system and that all action is based in that system, then this essay contributes to a defense of Humeanism. On the other hand, the essay also shows that any model of agency in terms of only beliefs and desires, motivational and representational states, or preferences and credences is incomplete. A different conception of Humeanism as the view that every mental state is either motivational, representational, or a combination of them, is false. (shrink)

Should economics study the psychological basis of agents' choice behaviour? I show how this question is multifaceted and profoundly ambiguous. There is no sharp distinction between "mentalist'' answers to this question and rival "behavioural'' answers. What's more, clarifying this point raises problems for mentalists of the "functionalist'' variety (Dietrich and List, 2016). Firstly, functionalist hypotheses collapse into hypotheses about input--output dispositions, I show, unless one places some unwelcome restrictions on what counts as a cognitive variable. Secondly, functionalist hypotheses make some (...) risky commitments about the plasticity of agents' choice dispositions. (shrink)

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 (...) assess several different criteria for individuating and formally representing agents’ choice options. (shrink)

It is customary to think that Objective List (“OL), Desire-Satisfaction (“D-S”) and Hedonistic (“HED”) theories of prudential value pretty much cover the waterfront, and that those of the three that are “subjective” are naturalistic (in the sense attacked by Moore, Ross and Ewing), while those that are “objective” must be Platonic, Aristotelian or commit the naturalist fallacy. I here argue for a theory that is both naturalistic (because voluntaristic) and objective but neither Platonic, Aristotelian, nor (I hope) fallacious. In addition, (...) this proposal, called “CHOICE,” is an example of neither an OL, D-S, nor HED theory. It is a theory according to which uncoerced choosings create objective values that we (even everyone) may be wrong about, because valuations are conative rather than epistemic activities. On this view, intrinsic prudential goods necessarily involve likely (pursuant to lawlike regularities) net increases in successful free choosings . (shrink)

The tenuous claims of cost-benefit analysis to guide policy so as to promote welfare turn on measuring welfare by preference satisfaction and taking willingness-to-pay to indicate preferences. Yet it is obvious that people's preferences are not always self-interested and that false beliefs may lead people to prefer what is worse for them even when people are self-interested. So welfare is not preference satisfaction, and hence it appears that cost-benefit analysis and welfare economics in general rely on a mistaken theory of (...) well-being. This essay explores the difficulties, criticizes standard defences of welfare economics, and then offers a new partial defence that maintains that welfare economics is independent of any philosophical theory of well-being. Welfare economics requires nothing more than anevidentialconnection between preference and welfare: in circumstances in which people are concerned with their own interests and reasonably good judges of what will serve their interests, their preferences will be reliable indicators of what is good for them. (shrink)

Preferences are the central notion in mainstream economic theory, yet economists say little about what preferences are. This article argues that preferences in mainstream positive economics are comparative evaluations with respect to everything relevant to value or choice, and it argues against three mistaken views of preferences: (1) that they are matters of taste, concerning which rational assessment is inappropriate, (2) that preferences coincide with judgments of expected self-interested benefit, and (3) that preferences can be defined in terms of choices.

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 (...) views is correct. This paper defends the view that GT as commonly understood is not a tautology, that it suffers from important (albeit very recently discovered) empirical anomalies, and that it is not flexible enough to accommodate all the anomalies in its theoretical framework. It also discusses the experiments that finally refuted game theory, and concludes trying to explain why it took so long for experimental game theorists to design experiments that could adequately test the theory. (shrink)

The options that people face are rarely ideal: they are good in some ways and poor in others. People have problems choosing among such options because they don’t know which ends to favor. Multiple objectives pose a problem not only for decision makers, but also for our account of decision making. People act to achieve their ends given their beliefs. In order to handle decisions with multiple objectives, however, this story must be supplemented by an account of which ends are (...) implicated in which decisions (e.g., do individual goals guide particular choices? do different ends jointly pick out courses of action?). Unfortunately, such an account is lacking. As a result, there is a gap (at least) in our most basic account of human behavior. In this paper I explore that gap and examine some proposals for closing it. (shrink)

This paper examines the preference-based approach to the identification of beliefs. It focuses on the main problem to which this approach is exposed, namely that of state-dependent utility. First, the problem is illustrated in full detail. Four types of state-dependent utility issues are distinguished. Second, a comprehensive strategy for identifying beliefs under state-dependent utility is presented and discussed. For the problem to be solved following this strategy, however, preferences need to extend beyond choices. We claim that this a necessary feature (...) of any complete solution to the problem of state-dependent utility. We also argue that this is the main conceptual lesson to draw from it. We show that this lesson is of interest to both economists and philosophers. (shrink)

I distinguish several doctrines that economic methodologists have found attractive, all of which have a positivist flavour. One of these is the doctrine that preference assignments in economics are just shorthand descriptions of agents' choice behaviour. Although most of these doctrines are problematic, the latter doctrine about preference assignments is a respectable one, I argue. It doesn't entail any of the problematic doctrines, and indeed it is warranted independently of them.

One of the most impressive changes in economics and decision sciences is the emergence and fast growth of so-called “behavioral” economics and neuroeconomics. These fields raise several methodological issues, some of them being currently intensively discussed. Amongst those issues, the following is prominent : what is the epistemic relevance of non-behavioral or “cognitive” data, i.e. data which bear on cognitive processes and states involved in decision making ? F. Gul and W. Pesendorfer (2005/2008) have vigorously criticized the idea that these (...) data could be relevant for economics and decision sciences. Their criticisms became the focal point of a very active methodological literature. In this paper, we reconstruct and discuss Gul and Pesendorfer’s views and arguments. Although we are not convinced by some of them, we believe the authors hint a genuine issue : the “missing links” issue. (shrink)

Behaviourism is the view that preferences, beliefs, and other mental states in social-scientific theories are nothing but constructs re-describing people's behaviour. Mentalism is the view that they capture real phenomena, on a par with the unobservables in science, such as electrons and electromagnetic fields. While behaviourism has gone out of fashion in psychology, it remains influential in economics, especially in ‘revealed preference’ theory. We defend mentalism in economics, construed as a positive science, and show that it fits best scientific practice. (...) We distinguish mentalism from, and reject, the radical neuroeconomic view that behaviour should be explained in terms of brain processes, as distinct from mental states. (shrink)

The paper analyses economic evaluations by distinguishing evaluative statements from actual value judgments. From this basis, it compares four solutions to the value neutrality problem in economics. After rebutting the strong theses about neutrality (normative economics is illegitimate) and non-neutrality (the social sciences are value-impregnated), the paper settles the case between the weak neutrality thesis (common in welfare economics) and a novel, weak non-neutrality thesis that extends the realm of normative economics more widely than the other weak thesis does.

Decision-making typically requires judgments about causal relations: we need to know the causal effects of our actions and the causal relevance of various environmental factors. We investigate how several individuals' causal judgments can be aggregated into collective causal judgments. First, we consider the aggregation of causal judgments via the aggregation of probabilistic judgments, and identify the limitations of this approach. We then explore the possibility of aggregating causal judgments independently of probabilistic ones. Formally, we introduce the problem of causal-network aggregation. (...) Finally, we revisit the aggregation of probabilistic judgments when this is constrained by prior aggregation of qualitative causal judgments. (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)

Anyone who has ever lived with roommates understands the Hobbesian state of nature implicitly. People sharing accommodations quickly discover that buying groceries, doing the dishes, sweeping the floor, and a thousand other household tasks, are all prisoner's dilemmas waiting to happen. For instance, if food is purchased communally, it gives everyone an incentive to overconsume. Individuals also have an incentive to buy expensive items that the others are unlikely to want. As a result, everyone's food bill will be higher than (...) it would be if everyone did their own shopping. Things are not much better when it comes to other aspects of household organization. Cleaning is a common sticking point. Once there are a certain number of people living in a house, cleanliness becomes a quasi-public good. If everyone ‘pitched in’ to clean up, then everyone would be happier. But there is a free-rider incentive—before cleaning, it's best to wait around a bit to see if someone else will do it. As a result, the dishes will stack up in the sink, the carpet will get grungy, and so on. (shrink)

I argue, first, that the deprived individuals whose predicaments Nussbaum cites as examples of "adaptive preference" do not in fact prefer the conditions of their lives to what we should regard as more desirable alternatives, indeed that we believe they are badly off precisely because they are not living the lives they would prefer to live if they had other options and were aware of them. Secondly, I argue that even where individuals in deprived circumstances acquire tastes for conditions that (...) we regard as bad, they are typically better off having their acquired preferences satisfied. If they are badly off it is because they cannot get what we and they, would regard as more desirable alternatives. Preference utilitarianism explains why individuals in such circumstances are badly off whether they have adapted to their deprived circumstances or not. Even if they prefer the conditions of their lives to all other available alternatives, most would prefer alternatives that are not available to them which would, on the preferentist account, make them better off. And that, on the preferentist account, is the basis for a radical critique of unjust institutions that limit people's options and prevent them from getting what they want. (shrink)

This thesis is an experimental study to investigate the operationalisability of the theory of social norms provided by Cristina Bicchieri. In Chapter 1 I critically summarise a main theme from recent literature and distinguish the accounts of norms based on social preferences from accounts based on social structure. I also summarise different theorists’ accounts of social norms as a social construct, in addition to surveying some issues scholars have raised empirically. Chapter 2 reviews the conceptual analysis of social norms by (...) Bicchieri as a social structure based account. Bicchieri’s conceptual analysis introduces three kinds of condition for norm identification. I review these in detail, and suggest hypothesis testing corresponding to each kind of condition. Chapter 2 briefly analyses a critical problem for Bicchieri’s theory. Chapter 3 provides philosophical background that supports the intentional concepts applied in Bicchieri’s analysis of social norms. I suggest that the Dennettian account of Intentional Stance is the best philosophical framework for Bicchieri’s account of social norms. I also argue that Revealed Preference Theory from economics is an application of the Intentional Stance. I conjecture that adopting the Intentional Stance and applying Revealed Preference Theory to empirical data can allow for improved operationalisation of Bicchieri’s conceptual analysis. In Chapter 4 I provide critical review of some key experimental work by Bicchieri and co-authors applying her conceptual analysis of social norms. I then provide a critical review of a widely used toolbox from the current economic literature for norm elicitation. Then I introduce a more rigorous experimental protocol for investigating social norms understood following Bicchieri’s analysis. The toolbox suggested in my thesis addresses limitations identified in Bicchieri’s empirical work. Chapter 5 presents design of the experiment administered as the core element of the thesis. Chapter 6 shows and analyses the results from the experiments described in Chapter 5. It also introduces the statistical models used in my thesis to assess the extent to which Bicchieri’s analyses successfully guides experimental identification of social norms. Chapter 7 offers concluding theoretical reflections, and discusses possible extensions of the research presented in this thesis. (shrink)

This paper defends revealed preference theory against a pervasive line of criticism, according to which revealed preference methodology relies on appealing to some mental states, in particular an agent’s beliefs, rendering the project incoherent or unmotivated. I argue that all that is established by these arguments is that revealed preference theorists must accept a limited mentalism in their account of the options an agent should be modelled as choosing between. This is consistent both with an essentially behavioural interpretation of preference (...) and with standard revealed preference methodology. And it does not undermine the core motivations of revealed preference theory. (shrink)

This paper begins with a puzzle regarding Lewis' theory of radical interpretation. On the one hand, Lewis convincingly argued that the facts about an agent's sensory evidence and choices will always underdetermine the facts about her beliefs and desires. On the other hand, we have several representation theorems—such as those of (Ramsey 1931) and (Savage 1954)—that are widely taken to show that if an agent's choices satisfy certain constraints, then those choices can suffice to determine her beliefs and desires. In (...) this paper, I will argue that Lewis' conclusion is correct: choices radically underdetermine beliefs and desires, and representation theorems provide us with no good reasons to think otherwise. Any tension with those theorems is merely apparent, and relates ultimately to the difference between how 'choices' are understood within Lewis' theory and the problematic way that they're represented in the context of the representation theorems. For the purposes of radical interpretation, representation theorems like Ramsey's and Savage's just aren't very relevant after all. (shrink)

The critics of rational choice theory frequently claim that RCT is self-defeating in the sense that agents who abide by RCT’s prescriptions are less successful in satisfying their preferences than they would be if they abided by some normative theory of choice other than RCT. In this paper, I combine insights from philosophy of action, philosophy of mind and the normative foundations of RCT to rebut this often-made criticism. I then explicate the implications of my thesis for the wider philosophical (...) debate concerning the normativity of RCT for both ideal agents who can form and revise their intentions instantly without cognitive costs and real-life agents who have limited control over the formation and the dynamics of their own intentions. (shrink)

Recent debates on the nature of preferences in economics have typically assumed that they are to be interpreted either as behavioural regularities or as mental states. In this paper I challenge this dichotomy and argue that neither interpretation is consistent with scientific practice in choice theory and behavioural economics. Preferences are belief-dependent dispositions with a multiply realizable causal basis, which explains why economists are reluctant to make a commitment about their interpretation.

State-dependent utility is a problem for the behavioural branch of decision theory under uncertainty. It questions the very possibility that beliefs be revealed by choice data. According to the current literature, all models of beliefs are equally exposed to the problem. Moreover, the problem is solvable only when the decision-maker can influence the resolution of uncertainty. This article gives grounds to reject these two views. The various models of beliefs can be shown to be unequally exposed to the problem of (...) state-dependent utility. The problem can be argued to be solved even when the decision-maker has no influence over the resolution of uncertainty. The implications of such reappraisal for a philosophical appreciation of the revealed preference methodology are discussed. (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)

This note considers the conceptual part of Sen’s «Internal Consistency of Choice». Amongst the various claims this paper features, two are singled out. A first, negative, claim is that no formal condition of choice consistency is normatively compelling without exception. A second, positive, claim, is that a formal condition of choice consistency is normatively compelling only under some assumptions involving preference. Here, the puzzling choices Sen puts forward are scrutinized and it is argued that such a scrutiny leads to question (...) the negative claim, but in a subtle way, so that the positive claim is comforted, even strengthened. -/- Cette note examine la partie conceptuelle d’un article de Sen, «Internal Consistency of Choice». Elle isole deux thèses parmi celles que Sen défend. Une première, négative, est qu’aucune condition formelle de cohérence du choix n’est normativement valable sans exception. Une seconde, positive, est qu’une condition formelle de cohérence du choix n’est normativement valable que sous des suppositions faisant intervenir la préférence. Nous procédons à une analyse détaillée des choix énigmatiques dont Sen prend argument et affirmons que cet examen mène à remettre en cause la thèse négative, mais d’une manière subtile qui confirme — même renforce — la thèse positive. (shrink)

Preferences are the central notion in mainstream economic theory, yet economists say little about what preferences are. This article argues that preferences in mainstream positive economics are comparative evaluations with respect to everything relevant to value or choice, and it argues against three mistaken views of preferences: (1) that they are matters of taste, concerning which rational assessment is inappropriate, (2) that preferences coincide with judgments of expected self-interested benefit, and (3) that preferences can be defined in terms of choices.

It is a mistake to think that instrumental rationality fixes a single standard for judging or describing actions. While there is a core conception of instrumental rationality, we appeal to different elaborations of that conception for different purposes. An action can be instrumentally rational in some sense(s) but not in others. As we learn more about behavior, it is possible to add useful elaborations of the core conception of instrumental rationality. In this paper, I propose a new elaboration based on (...) Frederic Schick's work on understandings. (shrink)

This paper examines methodological issues raised by revealed preference theory in economics: particularly contemporary revealed preference theory. The paper has three goals. First, to make the case that revealed preference theory is a broad research program in choice theory—not a single theory—and understanding this diversity is essential to any methodological analysis of the program. Second, to explore some of the existing criticisms of revealed preference theory in a way that emphasizes how the effectiveness of the critique depends on the particular (...) version of revealed preference under consideration. Finally, three additional criticisms are presented that are aimed specifically at contemporary revealed preference theory. (shrink)

This article introduces the Normative Representativeness Requirement (NRR) on any moral objection to a decentralized, profit-oriented system of political economy. I develop and defend the NRR and then show why the most important recent critique of the profit system—which I call The Moderate Critique (developed by, for instance, Elizabeth Anderson)—fails to meet the NRR. This article also defends the radical claim that no objection to the profit system itself, rather than just key aspects or salient instances of it, succeeds in (...) meeting the NRR. Critics of the profit system should not seek an alternative to the profit system, but, at most, an alternative within it. (shrink)

My aim in this paper is to argue that the recent philosophical defenses of revealed preference theory do not withstand scrutiny. Towards this aim, I will first outline revealed preference theory. I will then briefly present the two most common arguments that the received view offers against it. Afterwards, I will outline three argumentative strategies for rehabilitating revealed preference theory, and successively rebut each of them.

This article provides unified axiomatic foundations for the most common optimality criteria in statistical decision theory. It considers a decision maker who faces a number of possible models of the world (possibly corresponding to true parameter values). Every model generates objective probabilities, and von Neumann–Morgenstern expected utility applies where these obtain, but no probabilities of models are given. This is the classic problem captured by Wald’s (Statistical decision functions, 1950) device of risk functions. In an Anscombe–Aumann environment, I characterize Bayesianism (...) (as a backdrop), the statistical minimax principle, the Hurwicz criterion, minimax regret, and the “Pareto” preference ordering that rationalizes admissibility. Two interesting findings are that c-independence is not crucial in characterizing the minimax principle and that the axiom which picks minimax regret over maximin utility is von Neumann–Morgenstern independence. (shrink)

Institutional economics and discourse theory stand unconnected next to each other, in spite of the fact that they both ask for the legitimacy of institutions (normative) and the functioning and effectiveness of institutions (positive). Both use as theoretical constructions rational individuals and the concept of consensus for legitimacy. Whereas discourse theory emphasizes the conditions of a legitimate consensus and could thus enable institutional economics to escape the infinite regress of judging a consensus legitimate, institutional economics has a tested social science (...) paradigm (rational choice) of explaining and predicting the functioning of institutions. The article outlines a theoretical synthesis of the two theories by finding points in common and possibilities of fruitful combinations concerning the problem of legitimacy, institutional design and effectiveness of legal norms. Key Words: consensus • discourse theory • effectiveness of legal rules • institutional design • legitimacy • new institutional economics. (shrink)

This article examines two empirical research traditions—experimental economics and the social identity approach in social psychology—that may be seen as attempts to falsify and verify the theory of collective intentionality, respectively. The article argues that both approaches fail to settle the issue. However, this is not necessarily due to the alleged immaturity of the social sciences but, possibly, to the philosophical nature of intentionality and intentional action. The article shows how broadly Davidsonian action theory, including Hacking’s notion of the looping (...) effect of the human sciences, can be developed into an argument for the view that there is no theory-independent true nature of intentional action. If the Davidsonian line of thought is correct, the theory of collective intentionality is, in a sense, true if we accept the theory. Key Words: collective intentionality • experimental economics • social identity theory • Donald Davidson • Ian Hacking • constructivism • action • agency • philosophy of the social sciences. (shrink)

This article proposes two interpretations of the concept of belief hierarchies in Bayesian game theory: the behaviorist interpretation and the mentalist interpretation. On the former, belief hierarchies are derived from the players’ preferences over acts. On the latter, they are causal mechanisms that are responsible for the players’ choices and preferences over acts. The claim is that the epistemic program in game theory is potentially confronted with a dilemma regarding which interpretation should be adopted. If the behaviorist interpretation of belief (...) hierarchies is retained, then Bayesian game theory cannot account for the players’ reasoning that leads to the generation of specific belief hierarchies and thus to the implementation of a specific strategy profile in a game. If the mentalist interpretation is retained, then belief hierarchies appear to be unnecessarily and unrealistically complex objects and that as a result they fail to provide reasonable epistemic foundations for various solution concepts. In other words, neither interpretation seems to allow the epistemic program to fulfill all its aims. I suggest however that the mentalist interpretation can be arranged to escape this dilemma. (shrink)

The mathematical tools of game theory are frequently used in the social sciences and economic consultancy. But how do they explain social phenomena and support prescriptive judgments? And is the use of game theory really necessary? I analyze the logical form of explanatory and prescriptive game theoretical statements, and argue for two claims: (1) explanatory game theory can and should be reduced to rational choice theory in all cases; and (2) prescriptive game theory gives bad advice in some cases, is (...) reducible to rational choice theory in other cases, while it makes no sense in yet other cases. (shrink)

We argue that a Bayesian explanation of strategic choices in games requires introducing a psychological theory of belief formation. We highlight that beliefs in epistemic game theory are derived from the actual choice of the players, and cannot therefore explain why Bayesian rational players should play the strategy they actually chose. We introduce the players’ capacity of mindreading in a game theoretical framework with the simulation theory, and characterise the beliefs that Bayes rational players could endogenously form in games. We (...) show in particular that those beliefs need not be ratifiable, and therefore that rational players can form action-dependent beliefs. (shrink)

This paper proposes a two-level modeling perspective which combines intrinsic 'betterness' and reason-based extrinsic preference, and develops its static and dynamic logic in tandem. Our technical results extend, integrate, and re-interpret earlier theorems on preference representation and update in the literature on preference change.

Institutional economics and discourse theory stand unconnected next to each other, in spite of the fact that they both ask for the legitimacy of institutions (normative) and the functioning and effectiveness of institutions (positive). Both use as theoretical constructions rational individuals and the concept of consensus for legitimacy. Whereas discourse theory emphasizes the conditions of a legitimate consensus and could thus enable institutional economics to escape the infinite regress of judging a consensus legitimate, institutional economics has a tested social science (...) paradigm (rational choice) of explaining and predicting the functioning of institutions. The article outlines a theoretical synthesis of the two theories by finding points in common and possibilities of fruitful combinations concerning the problem of legitimacy, institutional design and effectiveness of legal norms. (shrink)

Many questions concerning health involve values. How well is a health system performing? How should resources be allocated between the health system and other uses or among competing healthrelated uses? How should the costs of health services be distributed among members of a population? Who among those in need of transplants should receive scarce organs? What is the best way to treat particular patients? Although many kinds of expertise bear on these questions, values play a large role in answering them. (...) These values are of many kinds – judgments about how health states contribute to the well-being of individuals depend on views about what is good for a person, whereas judgments about how to share the costs of health care or about how to distribute scarce organs among those in need of transplants depend on theories of fairness. The value judgments that need to be made are not only multifaceted and heterogeneous; they are also controversial. Both the understanding of the questions and the substance of the answers may vary widely from individual to individual and among different groups within countries and across national boundaries. How are these many complicated, difficult and controversial evaluative questions to be answered? This could be a question about who should answer them as well as a question about how they should be answered. There are various possible mechanisms, and there is no reason why the same method should be employed to answer every question. Among the possible methods are (1) moral argument, (2) political deliberation and (3) eliciting preferences or judgments from some group. Included in the third method lie many different techniques of elicitation. For example, one could study attitudes by the use of deliberative (focus) groups, by permitting individual choice in some sort of market or quasi-market, by polling or by voting. These methods of answering evaluative questions are not always incompatible with one another. Moral argument can play a role within political deliberation, deliberation by focus groups, individual market choice, or voting.. (shrink)