El presente trabajo intenta profundizar en la noción de racionalidad y la lógica de la situación de Karl Popper en el marco del debate entre “economía sustantiva” y “economía formal o instrumental”. Con tal propósito realizaremos una breve aproximación histórica al concepto de racionalidad económica señalando los distintos aportes de diversos autores a la cuestión. Este marco histórico permitirá encuadrar el planteo que Karl R. Popper hace de la lógica de la situación como metodología de las ciencias sociales tomada de (...) la teoría económica. En cuanto a la racionalidad y la lógica de la situación en Popper distinguiremos algunas notas acerca del análisis situacional y de la noción de racionalidad que subyace al mismo. Analizaremos el principio de racionalidad y el debate en torno al status epistemológico de tal principio. (shrink)

Even though Popper, Lawson and Mäki are realists, the three of them understand by realism something different and support different positions on the use of models in economics. In this article we will compare the three proposals on their conceptions of reality, the function and the nature of economic models and their use to study the social world.

Neuroeconomics is an emerging field crossing neuroscientific data, the use of brain-imaging tools, experimental and behavioral economics, and an attempt at a better understanding of the cognitive assumptions that underlie theoretical predictive economic models. In this paper the authors try two things: 1) To assess the epistemological biases that affect Neuroeconomics as it is currently done. A number of significant experiments are discussed in that perspective. 2) To imagine an original way - apart from what is already being done - (...) to run experiments in brain-imaging that are relevant to the discussion of rationality assumptions at the core of economic theory. (shrink)

In robustness analysis, hypotheses are supported to the extent that a result proves robust, and a result is robust to the extent that we detect it in diverse ways. But what precise sense of diversity is at work here? In this paper, I show that the formal explications of evidential diversity most often appealed to in work on robustness – which all draw in one way or another on probabilistic independence – fail to shed light on the notion of diversity (...) relevant to robustness analysis. I close by briefly outlining a promising alternative approach inspired by Horwich’s (1982) eliminative account of evidential diversity. (shrink)

This thesis attempts to justify a normative role for methodology by sketching a pragmatic way out of the dichotomy between two major strands in economic methodology: empiricism and postmodernism. I discuss several methodological approaches and assess their aptness for theory appraisal in economics. I begin with the most common views on methodology and argue why they are each ill-suited for giving methodological prescriptions to economics. Then, I consider positions that avoid the errors of empiricism and postmodernism. I specifically examine why (...) the two major strands of methodological criticism fail to give helpful methodological advice to economists and sketch out a pragmatic approach that can do this. (shrink)

The pace of scientific progress may be hindered by the tendency of our academic institutions to reward being popular rather than being right. A market-based alternative, where scientists can more formally 'stake their reputation', is presented here. It offers clear incentives to be careful and honest while contributing to a visible, self-consistent consensus on controversial scientific questions. In addition, it allows patrons to choose questions to be researched without choosing people or methods. The bulk of this paper is spent in (...) examining potential problems with the proposed approach. After this examination, the idea still seems to be plausible and worthy of further study. (shrink)

The four sections of this article are reactions to a few interconnected problems that Mario Bunge addresses in his The Sociology-Philosophy Connection , which can be seen as a continuation and summary of his two recent major volumes Finding Philosophy in Social Science and Social Science under Debate: A Philosophical Perspective . Bunge’s contribution to the philosophy of the social sciences has been sufficiently acclaimed. (See in particular two special issues of this journal dedicated to his social philosophy: "Systems and (...) Mechanisms. A Symposium on Mario Bunge’s Philosophy of Social Science," Philosophy of the Social Sciences 34, nos. 2 and 3.) The author discusses therefore only those solutions in Bunge’s book that seem most problematic, namely, Bunge’s proposal to expel charlatans from universities; his treatment of social laws; his notions of mechanisms, "mechanismic explanation," and systemism; and his reading of Popper’s social philosophy. Key Words: theory • laws • mechanism • explanation • Popper. (shrink)

In the methodology of scientific research programs (MSRP) there are important features on the problem of prediction, especially regarding novel facts. In his approach, Imre Lakatos proposed three different levels on prediction: aim, process, and assessment. Chapter 5 pays attention to the characterization of prediction in the methodology of research programs. Thus, it takes into account several features: (1) its pragmatic characterization, (2) the logical perspective as a proposition, (3) the epistemological component, (4) its role in the appraisal of research (...) programs, and (5) its place as a value for scientific research. -/- The notion of “novel facts” is highly relevant in his conception, where several aspects are involved: the directions of novel facts, the different kinds of novelty, and the transition from six possible options of “novel facts” to four choices. Thereafter, the prediction of novel facts as the criterion of appraisal is considered. On the one hand, this requires analyzing the theoretical, empirical, and heuristic possibilities of appraisal; and, on the other, whether there is an overemphasis on the role of prediction in methodology of scientific research programs. As a consequence, there is an analysis of Lakatos’ criterion of appraisal in MSRP and economics. (shrink)

‘Situational Analysis’ constitutes Popper's methodological proposal for the social sciences. There is an apparent inconsistency in the fact that, on the one hand, Popper maintains that we lear...

Popper’s ‘Situational Analysis’ (SA) constitutes his methodological proposal for the social sciences. We claim that the two hallmarks of SA are: (i) that scientists assume they possess a ‘wider’ view of the problem-situation than actors do, and (ii) use the model as an ideal ‘benchmark’ scenario to identify thedeviationof actors’ actual behaviour from the former. We argue that SA is not a generalization of the neoclassical theory of individual behaviour but captures instead the methodology adopted by modern behavioural economists. Last, (...) we argue that SA highlights a way of acquiring knowledge that has gone unnoticed in the literature. (shrink)

Within the social sciences, much controversy exists about which status should be ascribed to the rationality assumption that forms the core of rational choice theories. Whilst realists argue that the rationality assumption is an empirical claim which describes real processes that cause individual action, instrumentalists maintain that it amounts to nothing more than an analytically set axiom or ‘as if’ hypothesis which helps in the generation of accurate predictions. In this paper, I argue that this realist-instrumentalist debate about rational choice (...) theory can be overcome once it is realised that the rationality assumption is neither an empirical description nor an ‘as if’ hypothesis, but a normative claim. (shrink)

In those parts of his paper that have the clearest bearing upon mycontributions, Simon Deichsel 1) elaborates various conceptions ofrealism; 2) declares himself an anti-realist of a specific sort; 3) seeks toidentify and criticise pragmatic aspects of my justification for adoptinga realist orientation; and 4) argues that his anti-realist perspective ispreferable to realism.An immediate problem with Deichsel’s project, if intended as acritique of my own realist orientation, is that the sort of realism againstwhich his anti-realism is oppositionally defined is not (...) the versionof realism I maintain. In fact the only one of Deichsel’s formulationsthat I unambiguously accept as a version of realism is ontological realism. Realism as I understand the term is about existence.It is ontological in nature. At its most basic, it posits the existence of an‘external’ reality.1So understood, realism is not a theory of knowledge, or of language,or even of truth. Indeed so formulated it says nothing about knowledgeor truth.2In particular it does not commit anyone to the correspondencetheory of truth, or indeed to any other theory or conception of truth.In fact it is not a semantic theory at all. (shrink)

Since the early days of economics, the rationality principle has been a core element of economic theorizing. It is part of almost any theoretical framework that economists use to generate knowledge. Despite its central role, the principle’s epistemic status and function continue to be debated between empiricists and rationalists, and a clear winner is yet to emerge. One point of contention is that we cannot explain the principle’s special status in light of clear evidence against its empirical validity and the (...) continuous conceptual changes it undergoes. In this paper, I argue that we should think of the rationality principle as a functional a priori principle along the lines of a pragmatic theory of constitutive elements recently put forward by David Stump. Such an approach would explain the principle’s persistence and changing status. More generally, the pragmatic theory of constitutive elements in science offers a viable alternative to rationalism and empiricism that allows for approaching the debate about the status and function of the rationality principle in economics. It provides a new framework and starting point to think about the usefulness of a central first principle in economics in a constructive way. (shrink)

In his biography of Karl Popper, Malachi Hacohen brilliantly reconstructs the development of Popper's ideas through 1946, correcting many errors regarding the sequence of their emergence. In addition he recreates Popper's Vienna and provides insights into Popper's complex personality. A larger goal of Hacohen's narrative is to show the relevance of Popper's philosophical and political thought for the left. Unfortunately this leads him to neglect and distort certain aspects of the story he tells, particularly when it comes to the relationship (...) between Popper and F.A. Hayek. (shrink)

Popper's version of situational analysis, with its focus on the logic of situations and the rationality principle, fails to provide cogent explanations of the human decisions and actions underpinning social phenomena. It so fails because where he demanded objectivism and formalism in the social sciences, his substantive arguments lost contact with the psychological and subjectivist realities of the human realm. But Popper also devised some key elements of a social ontology. It is argued that although there are crucial gaps in (...) his ontology, it can be augmented to give situational analysis the potential to reach beyond pure logic and rationality and to bring social theory closer to grasping the real world of human action. (shrink)

“Situational Analysis” (SA) constitutes Popper’s methodological proposal for the social sciences. We argue that notwithstanding Popper’s claim that SA is an attempt to extend the methodology of neoclassical economics to the rest of the social sciences, the former is better interpreted as an extension of his view of the “method” of history to the “theoretical” social sciences. The reason is that, unlike neoclassical economics, Popper’s formulation of SA presupposes that social scientists exhibit a “more complete” view of the “logic of (...) the situation” than individual actors do, on average, which implies that the latter’s knowledge is “partially wrong” or “incomplete.”. (shrink)

Popper's short essay about the rationality principle has been the target of many criticisms which have raised serious doubts about its consistency. How could the well-known promoter of falsificationism suggest that we not reject a principle that he himself describes as false? Nonetheless, the essay can be read in a way that makes it appear much more consistent. Better sense can be made of Popper's own examples (the flustered driver, the pedestrian, etc.), by taking seriously his view that the rationality (...) principle might be "approximately true" and falsified only in very rare cases, while also giving proper attention to his four rather elliptical arguments. (shrink)

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 (...) of these disciplines. In doing so, I argue that recent calls to develop a unified interdisciplinary framework for modeling choice are premised on disputable presuppositions concerning both the domain of economic theory and the relationship between this theory’s axiomatic foundations and empirical findings about the neuro-psychological substrates of choice. (shrink)

Laboratory experimentation was once considered impossible or irrelevant in economics. Recently, however, economic science has gone through a real ‘laboratory revolution’, and experimental economics is now a most lively subfield of the discipline. The methodological advantages and disadvantages of controlled experimentation constitute the main subject of this thesis. After a survey of the literature on experiments in philosophy and economics, the problem of testing normative theories of rationality is tackled. This philosophical issue was at the centre of a famous controversy (...) in decision theory, during which a methodology of normative falsification was first articulated and used to assess experimental results. In the third chapter, the methodological advantages of controlled experimentation are illustrated and discussed with examples taken from the experiments on the so-called ‘preference reversal’ phenomenon. Laboratory testing allows to establish with a high degree of certainty that certain phenomena lie behind the experimental data, by means of independent testing, elimination of alternative hypotheses, and the use of different instruments of observation. The fourth chapter is devoted to a conceptual analysis of the problem of ‘parallelism’. This is the problem of inferring from the occurrence of a phenomenon in the laboratory, to its instantiation also in non-laboratory environments. Experimental economists have discussed parallelism at length, and their views are presented and criticised. Eventually, it is argued that parallelism is a factual matter and as such can only be established on empirical grounds. The fifth chapter provides an example of how one can argue for parallelism, focusing on the case of experimentation on the ‘winner’s curse’ phenomenon. The role of experiments as ‘mediators’ between theoretical models and their target domain of application is illustrated, and the structure of parallelism arguments analysed in detail. Finally, in the last chapter, economic experiments are compared to simulations, in order to highlight their specific characteristics. (shrink)

ABSTRACT The status and role of Popper’s ‘Rationality Principle’ (RP) is still the subject of disputes. The ‘prevailing view’ among Popper’s commentators seems to be that RP is better interpreted as a methodological principle. Yet, this view is challenged in a recent study where RP is interpreted as an‘idealization’. We critically review these two accounts of RP and propose a novel one according to which RP is, first and foremost, the scientific version of a heuristic that ordinary people unconsciously use (...) when they seek to explain and predict other people’s behavior. However, we recognize that, to the extent RP is part of a methodological strategy whereby, in the wake of adverse empirical results, social scientists place the ‘onus of proof’ on their situational model it is legitimate to claim that RP is adopted, at least partly, for methodological reasons. Further, to the extent that the adoption of RP implies suppressing those mental processes that may affect actors’ reasoning and willpower it is also legitimate to claim that RP is, at least partly, an ‘idealization’. We conclude that the status and role of RP is multi-faceted and that the three accounts of RP complement each other. (shrink)