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)

In this paper I challenge the pernicious aspects of Milton Friedman's methodological outlook that continues to hold sway over mainstream neoclassical economists. I do this by showing how Friedman's own methodological dicta could have been used against him when he famously advanced the expectations critique of the Phillips curve at his presidential address to the American Economic Association. I use this case study to further suggest that psychological and neurophysiological data should not be deemed irrelevant to economic science.

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 (...) help other economists to build more predictive and explanatory models, yet are unlikely to foster revolutionary modifications in the economic theory of choice. The contents are organized as follows. In chapters 1-2, I present neuroeconomists’ investigative tools, distinguish the most influential approaches to neuroeconomic research and reconstruct the case in favour of a neural enrichment of economic theory. In chapters 3-7, I combine insights from neuro-psychology, economic methodology and philosophy of science to develop a systematic critique of Neuroeconomics. In particular, I articulate four lines of argument to demonstrate that economists are provisionally justified in retaining a methodologically distinctive approach to the modelling of decision making. My first argument points to several evidential and epistemological concerns which complicate the interpretation of neural data and cast doubt on the inferences neuroeconomists often make in their studies. My second argument aims to show that the trade-offs between the modelling desiderata that neuroeconomists and other economists respectively value severely constrain the incorporation of neural insights into economic models. My third argument questions neuroeconomists’ attempts to develop a unified theory of choice behaviour by identifying some central issues on which they hold contrasting positions. My fourth argument differentiates various senses of the term ‘revolution’ and illustrates that neuroeconomists are unlikely to provide revolutionary contributions to economic theory in any of these senses. (shrink)

Soon after the 2008 financial crisis, Gillian Tett, an anthropologist and the US Managing Editor of the Financial Times, suggested that regulators’ and practitioners’ inability to anticipate and respond to deep problems in the financial industry could be traced back to what she called “silo thinking,” wherein experts in one area know nothing about the methods and research of other areas. As she put it, “the essential challenges for investors today…”—and, we might add, for regulators and academics—is “to understand the (...) micro-details of the silos, and see how all the macro-pieces add up”.In years since, many researchers in many fields have sought to identify causes of the... (shrink)

The paper reviews the philosophical literature on the epistemology of modelling in contemporary economics. In particular, it focuses on open questions concerning the epistemic role of models, the validity of inferences from the models to the world, and the legitimacy of their use for purposes of explanation, prediction and intervention.

Studie ukazuje kontrast mezi ekonomickým přístupem jdoucím ve šlépějích Garyho Beckera a přístupem behaviorální ekonomie. Důraz je kladen na metodologické srovnání obou alternativ a vyhodnocení potenciálu, který má behaviorální ekonomie pro uskutečnění paradigmatické změny na půdě ekonomického myšlení. Ukazuji, že behaviorální ekonomii se dosud nepodařilo nabídnout teoretickou alternativu homo economicus. Také její potenciál pro dlouhodobé překonání teorie racionální volby v oblasti predikčního úspěchu, který je pro ekonomy standardním kritériem vyhodnocování teorií, může být omezený.

This paper presents an account of how to evaluate formal models of science: models and simulations in social epistemology designed to draw normative conclusions about the social structure of scientific research. I argue that such models should be evaluated according to their representational and predictive accuracy. Using these criteria and comparisons with familiar models from science, I argue that most formal models of science are incapable of supporting normative conclusions.

When can macroscopic data about a system be used to set parameters in a microfoundational simulation? We examine the epistemic viability of tweaking parameter values to generate a better fit between the outcome of a simulation and the available observational data. We restrict our focus to microfoundational simulations—those simulations that attempt to replicate the macrobehavior of a target system by modeling interactions between microentities. We argue that tweaking can be effective but that there are two central risks. First, tweaking risks (...) overfitting the simulation to the data and thus compromising predictive accuracy; and second, it risks compromising the microfoundationality of the simulation. We evaluate standard responses to tweaking and propose strategies to guard against these risks. (shrink)

El trabajo identifica dos problemas metodológicos que dificultan la contrastación de teorías económicas: 1) en su empleo habitual, no es posible decidir si se satisfacen sus condiciones de aplicación, antes e independientemente de la aplicación de las mismas; 2) si es admisible modificar las condiciones de aplicación de una teoría, debe aceptarse que también pueda ser "manipulada" su clase de predicciones consideradas relevantes. Ambas tesis conforman la base de la argumentación de Milton Friedman contra el realismo de los supuestos, pero (...) no han sido debatidos explícitamente y, consecuentemente, sus argumentos no han recibido una respuesta adecuada de parte de sus críticos. Two methodological problems obstruct the tests of economic theories: 1) usually it is not possible to ascertain whether the domain assumptions are satisfied before of the applications of the theory; 2) if it is admissible to modify the domain assumptions of a theory, it must also be accepted that the class of its supposedly relevant predictions can be modified. Both thesis are the foundations of Friedman's argumentation against the realism of the economic assumptions, but they have not been debated explicitly and therefore, his arguments haven't received an adequate response. (shrink)