A ubiquitous argument against mental-state accounts of well-being is based on the notion that mental states like happiness and satisfaction simply cannot be measured. The purpose of this paper is to articulate and to assess this “argument from measurability.” My main thesis is that the argument fails: on the most charitable interpretation, it relies on the false proposition that measurement requires the existence of an observable ordering satisfying conditions like transitivity. The failure of the argument from measurability, however, does not (...) translate into a defense of mental-state accounts as accounts of well-being or of measures of happiness and satisfaction as measures of well-being. Indeed, I argue, the ubiquity of the argument from measurability may have obscured other, very real problems associated with mental-state accounts of well-being – above all, that happiness and satisfaction fail to track well-being – and with measures of happiness and satisfaction – above all, the tendency toward reification. I conclude that the central problem associated with the measurement of, e.g., happiness as a subjectively experienced mental state is not that it is too hard to measure, but rather that it is too easy to measure. (shrink)

One of the conceptual limitations of the orthodox game theory is its inability to offer definitive theoretical predictions concerning the outcomes of noncooperative games with multiple rationalizable outcomes. This prompted the emergence of goal-directed theories of reasoning – the team reasoning theory and the theory of hypothetical bargaining. Both theories suggest that people resolve non-cooperative games by using a reasoning algorithm which allows them to identify mutually advantageous solutions of non-cooperative games. The primary aim of this thesis is to enrich (...) the current debate on goaldirected reasoning theories by studying the extent to which the principles of the bargaining theory can be used to formally characterize the concept of mutual advantage in a way which is compatible with some of the conceptually compelling principles of orthodox game theory, such as individual rationality, incentive compatibility, and non-comparability of decision-makers’ personal payoffs. I discuss two formal characterizations of the concept of mutual advantage derived from the aforementioned goal-directed reasoning theories: A measure of mutual advantage developed in collaboration with Jurgis Karpus, which is broadly in line with the notion of mutual advantage suggested by Sugden, and the benefit-equilibrating bargaining solution function, which is broadly in line with the principles underlying Conley and Wilkie’s solution for Pareto optimal point selection problems with finite choice sets. I discuss the formal properties of each solution, as well as its theoretical predictions in a number of games. I also explore each solution concept’s compatibility with orthodox game theory. I also discuss the limitations of the aforementioned goal-directed reasoning theories. I argue that each theory offers a compelling explanation of how a certain type of decision-maker identifies the mutually advantageous solutions of non-cooperative games, but neither of them offers a definitive answer to the question of how people coordinate their actions in non-cooperative social interactions. (shrink)

We develop a framework for modeling choice in the presence of framing effects. An extended choice function assigns a chosen element to every pair (A, f ) where A is a set of alternatives and f is a frame. A frame includes observable information that is irrelevant in the rational assessment of the alternatives, but nonetheless affects choice. We relate the new framework to the classical model of choice correspondence. Conditions are identified under which there exists either a transitive or (...) a transitive and complete binary relation R such that an alternative x is chosen in some (A, f ) iff x is R-maximal in the set A. We then demonstrate that the framework of choice correspondence misses information, which is essential to economic modeling and which is incorporated in the extended choice function. (shrink)

A behavioral dataset contains various preference orderings displayed by the same individual in different payoff-irrelevant circumstances. We introduce a framework for eliciting the individual’s underlying preferences in such cases, in which it is conjectured that the variation in the observed preference orderings is the outcome of some cognitive process that distorts the underlying preferences. We then demonstrate for two cognitive processes how to elicit the individual’s underlying preferences from behavioral datasets.