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)

On the orthodox view in economics, interpersonal comparisons of utility are not empirically meaningful, and "hence" impossible. To reassess this view, this paper draws on the parallels between the problem of interpersonal comparisons of utility and the problem of translation of linguistic meaning, as explored by Quine. I discuss several cases of what the empirical evidence for interpersonal comparisonsof utility might be and show that, even on the strongest of these, interpersonal comparisons are empirically underdetermined and, if we also deny (...) any appropriate truth of the matter, indeterminate. However, the underdetermination can be broken non-arbitrarily (though not purely empirically) if (i) we assign normative significance to certain states of affairs or (ii) we posit a fixed connection between certain empirically observable proxies and utility. I conclude that, even if interpersonal comparisons are not empirically meaningful, they are not in principle impossible. (shrink)

The main purpose of this paper is to investigate various notions of empirical equivalence in relation to the two main arguments for realism in the philosophy of science, namely the no-miracles argument and the indispensability argument. According to realism, one should believe in the existence of the theoretical entities postulated by empirically adequate theories. According to the no-miracles argument, one should do so because truth is the the best explanation of empirical adequacy. According to the indispensability argument, one should do (...) so because the theoretical terms employed in the formulation of an empirically adequate theory are practically indispensable for the formulation of its empirical content. The no-miracles argument might be refuted if one can establish an underdetermination thesis to the effect that every theory has empirically equivalent rivals that are incompatible with each other. Insofar as truth cannot explain the empirical adequacy of two incompatible theories, there is an obvious conflict between the underdetermination thesis and the no-miracles argument. I show that, under certain assumptions, some but not all notions of empirical equivalence support the underdetermination thesis. The indispensability argument might be refuted if one can establish a dispensability thesis to the effect that, for any theory with a practical formulation, there is an empirically equivalent theory with a practical formulation in purely empirical terms. I show that some but not all notions of empirical equivalence support this thesis. (shrink)

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)