This paper defends the viability of de-idealization strategies in economic modeling against recent criticism. De-idealization occurs when an idealized assumption of a theoretical model is replaced with a more realistic one. Recently, some scholars have raised objections against the possibility or fruitfulness of de-idealizing economic models, suggesting that economists do not employ this kind of strategy. We present a detailed case study from the theory of industrial organization, discussing three different models, two of which can be construed as de-idealized versions (...) of the first (the so-called Bertrand model of oligopoly). We conclude that recent pessimism about de-idealization in economics is largely unfounded, and that de-idealization strategies are not only possible but also widely employed in economics. (shrink)

This paper provides the first systematic epistemological account of simulated data in empirical science. We focus on the epistemic issues modelers face when they generate simulated data to solve problems with empirical datasets, research tools, or experiments. We argue that for simulated data to count as epistemically reliable, a simulation model does not have to mimic its target. Instead, some models take empirical data as a target, and simulated data may successfully mimic such a target even if the model does (...) not. We show how to distinguish between simulated and empirical data, and we also offer a definition of simulation that can accommodate Monte Carlo models. We shed light on the epistemology of simulated data by providing a taxonomy of four different mimicking relations that differ concerning the nature of the relation or relata. We illustrate mimicking relations with examples from different sciences. Our main claim is that the epistemic evaluation of simulated data should start with recognizing the diversity of mimicking relations rather than presuming that only one relation existed. (shrink)

This paper defends the viability of de-idealization strategies in economic modeling against recent criticism. De-idealization occurs when an idealized assumption of a theoretical model is replaced with a more realistic one. Recently, some scholars have raised objections against the possibility or fruitfulness of de-idealizing economic models, suggesting that economists do not employ this kind of strategy. We present a detailed case study from the theory of industrial organization, discussing three different models, two of which can be construed as de-idealized versions (...) of the first. We conclude that recent pessimism about de-idealization in economics is largely unfounded, and that de-idealization strategies are not only possible but also widely employed in economics. (shrink)

This paper contributes to the philosophical accounts of generalisation in formal modelling by introducing a conceptual framework that allows for recognising generalisations that are epistemically beneficial in the sense of contributing to the truth of a model result or component. The framework is useful for modellers themselves because it is shown how to recognise different kinds of generalisation on the basis of changes in model descriptions. Since epistemically beneficial generalisations usually de-idealise the model, the paper proposes a reformulation of the (...) well-known distinction between abstraction and idealisation. A reformulated notion of abstraction is needed because the extant accounts yield wrong judgments when model-modifications introduce implicit assumptions. (shrink)