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)

“Utility,” in plain English, means usefulness. In Australia, a ute is a useful vehicle. Jeremy Bentham specialized the meaning to a particular sort of usefulness. “By utility,” he said, “is meant that property in any object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness or to prevent the happening of mischief, pain, evil, or unhappiness to the party whose interest is considered”. The “principle of utility” is the principle that actions are to be judged by their usefulness (...) in this sense: their tendency to produce benefit, advantage, pleasure, good, or happiness. When John Stuart Mill spoke of the “perfectly just conception of Utility or Happiness, considered as the directive rule of human conduct,” he was using “Utility” as a short name for this principle. “The greatest happiness principle” was another name for it. People who subscribed to this principle came to be known as utilitarians. (shrink)

We briefly describe ways in which neuroeconomics has made contributions to its contributing disciplines, especially neuroscience, and a specific way in which it could make future contributions to both. The contributions of a scientific research programme can be categorized in terms of (1) description and classification of phenomena, (2) the discovery of causal relationships among those phenomena, and (3) the development of tools to facilitate (1) and (2). We consider ways in which neuroeconomics has advanced neuroscience and economics along each (...) line. Then, focusing on electrophysiological methods, we consider a puzzle within neuroeconomics whose solution we believe could facilitate contributions to both neuroscience and economics, in line with category (2). This puzzle concerns how the brain assigns reward values to otherwise incomparable stimuli. According to the common currency hypothesis, dopamine release is a component of a neural mechanism that solves comparability problems. We review two versions of the common currency hypothesis, one proposed by Read Montague and colleagues, the other by William Newsome and colleagues, and fit these hypotheses into considerations of rational choice. (shrink)

The psychological condition of being happy is best understood as a matter of a person’s emotional condition. I elucidate the notion of an emotional condition by introducing two distinctions concerning affect, and argue that this “emotional state” view is probably superior on intuitive and substantive grounds to theories that identify happiness with pleasure or life satisfaction. Life satisfaction views, for example, appear to have deflationary consequences for happiness’ value. This would make happiness an unpromising candidate for the central element in (...) a theory of well-being, as it is in L. W. Sumner’s work. Yet on an emotional state conception, happiness may prove to be a key constituent of well-being. The emotional state view also makes happiness less vulnerable to common doubts about the importance of happiness, and indicates that mood states are more important for well-being than is generally recognized. (shrink)

This paper is a plea for hedonism to be taken more seriously. It begins by charting hedonism's decline, and suggests that this is a result of two major objections: the claim that hedonism is the 'philosophy of swine', reducing all value to a single common denominator, and Nozick's 'experience machine' objection. There follows some elucidation of the nature of hedonism, and of enjoyment in particular. Two types of theory of enjoyment are outlined-intemalism, according to which enjoyment has some special 'feeling (...) tone'. and externalism, according to which enjoyment is any kind of experience to which we take some special attitude, such as that of desire. lnternalism-the traditional view--is defended against current externalist orthodoxy. The paper ends with responses to the philosophy of swine and the experience machine objections. (shrink)

Hedonism and the desire-satisfaction theory of welfare are typically seen as archrivals in the contest over identifying what makes one's life go best. It is surprising, then, that the most plausible form of hedonism just is the most plausible form of desire satisfactionism. How can a single theory of welfare be a version of both hedonism and desire satisfactionism? The answer lies in what pleasure is: pleasure is, in my view, the subjective satisfaction of desire. This thesis about pleasure is (...) clarified and defended only after we proceed through the dialectics that get us to the most plausible forms of hedonism and desire satisfactionism. (shrink)

Well–being, health and freedom are some of the many phenomena of interest to science whose definitions rely on a normative standard. Empirical generalizations about them thus present a special case of value-ladenness. I propose the notion of a ‘mixed claim’ to denote such generalizations. Against the prevailing wisdom, I argue that we should not seek to eliminate them from science. Rather, we need to develop principles for their legitimate use. Philosophers of science have already reconciled values with objectivity in several (...) ways, but none of the existing proposals are suitable for mixed claims. Using the example of the science of well-being, I articulate a conception of objectivity for this science and for mixed claims in general. _1_ Introduction _2_ What Are Mixed Claims? _3_ Mixed Claims Are Different _3.1_ Values as reasons to pursue science _3.2_ Values as agenda-setters _3.3_ Values as ethical constraints on research protocols _3.4_ Values as arbiters between underdetermined theories _3.5_ Values as determinants of standards of confirmation _3.6_ Values as sources of wishful thinking and fraud _4_ Mixed Claims Should Stay _4.1_ Against Nagel _5_ The Dangers of Mixed Claims _6_ The Existing Accounts of Objectivity _6.1_ The perils of impartiality _7_ Objectivity for Mixed Claims _8_ Three Rules _8.1_ Unearth the value presuppositions in methods and measures _8.2_ Check if value presuppositions are invariant to disagreements _8.3_ Consult the relevant parties _9_ Conclusion. (shrink)

The article argues for the epistemic rationale of triangulation, namely, the use of multiple and independent sources of evidence. It claims that triangulation is to be understood as causal reasoning from data to phenomenon, and it rationalizes its epistemic value in terms of controlling for likely errors and biases of particular data-generating procedures. This perspective is employed to address objections against triangulation concerning the fallibility and scope of the inference, as well as problems of independence, incomparability, and discordance of evidence. (...) The debate on the existence of social preferences is used as an illustrative case. (shrink)

The tenuous claims of cost-benefit analysis to guide policy so as to promote welfare turn on measuring welfare by preference satisfaction and taking willingness-to-pay to indicate preferences. Yet it is obvious that people's preferences are not always self-interested and that false beliefs may lead people to prefer what is worse for them even when people are self-interested. So welfare is not preference satisfaction, and hence it appears that cost-benefit analysis and welfare economics in general rely on a mistaken theory of (...) well-being. This essay explores the difficulties, criticizes standard defences of welfare economics, and then offers a new partial defence that maintains that welfare economics is independent of any philosophical theory of well-being. Welfare economics requires nothing more than anevidentialconnection between preference and welfare: in circumstances in which people are concerned with their own interests and reasonably good judges of what will serve their interests, their preferences will be reliable indicators of what is good for them. (shrink)

Subjective measures of well-being—measures based on answers to questions such as ‘Taking things all together, how would you say things are these days—would you say you're very happy, pretty happy, or not too happy these days?’—are often presented as superior to more traditional economic welfare measures, e.g., for public policy purposes. This paper aims to spell out and assess what I will call the argument from directness: the notion that subjective measures of well-being better represent well-being than economic measures do (...) because subjective measures (and subjective measures alone) are direct measures of well-being. My main thesis is that the argument begs the question against proponents of economic measures: it is based on a premise that they reject and that is no less in need of justification than the conclusion of the argument, namely, the proposition that well-being is constituted by subjectively experienced mental states. If subjective measures can be defended as valid measures of well-being at all, I will maintain, it is because they are (imperfect) indirect measures of well-being. (shrink)

I distinguish between two styles of research that are both called . Neurocellular economics (NE) uses the modelling techniques and mathematics of economics to model relatively encapsulated functional parts of brains. This approach rests upon the fact that brains are, like markets, massively distributed information-processing networks over which executive systems can exert only limited and imperfect governance. Harrison's (2008) deepest criticisms of neuroeconomics do not apply to NE. However, the more famous style of neuroeconomics is behavioural economics in the scanner. (...) This is often motivated by complaints about conventional economics frequently heard from behavioural economists. It attempts to use neuroimaging data to justify arguments for replacing standard aspects of microeconomic theory by facts and conjectures about human psychology. Harrison's grounds for unease about neuroeconomics apply to most BES, or at least to its explicit methodology. This methodology is naively reductionist and illegitimately assumes that economics should not do what all successful science does, namely, model abstract aspects of its target phenomena instead of would-be complete and fully ecologically situated facsimiles of them. (shrink)

This paper aims to show that widespread, serious errors in the self-assessment of affect are a genuine possibility-one worth taking very seriously. For we are subject to a variety of errors concerning the character of our present and past affective states, or "affective ignorance." For example, some affects, particularly moods, can greatly affect the quality of our experience even when we are unable to discern them. I note several implications of these arguments. First, we may be less competent pursuers of (...) happiness than is commonly believed, raising difficult questions for political thought. Second, some of the errors discussed ramify for our understanding of consciousness, including Ned Block's controversial distinction between access consciousness and phenomenal consciousness. Third, empirical results based on self-reports about affect may be systematically misleading in certain ways. (shrink)

What makes a measure of well-being valid? The dominant approach today, construct validation, uses psychometrics to ensure that questionnaires behave in accordance with background knowledge. Our first claim is interpretive—construct validation obeys a coherentist logic that seeks to balance diverse sources of evidence about the construct in question. Our second claim is critical—while in theory this logic is defensible, in practice it does not secure valid measures. We argue that the practice of construct validation in well-being research is theory avoidant, (...) favoring a narrow focus on statistical tests while largely ignoring relevant philosophical considerations. (shrink)

Over the last decade, neuroeconomic research has attracted increasing attention by economic modellers and methodologists. In this paper, I examine five issues about neuroeconomic modelling and methodology that have recently been subject to considerable controversy. For each issue, I explicate and appraise prominent neuroeconomists' findings, focusing on those that are claimed to directly inform economic theorizing. Moreover, I assess often-made assertions concerning how neuroeconomic research putatively advances the economic modelling of choice. In doing so, I combine review and critical arguments (...) to provide a methodological evaluation of neuroeconomists' contributions. (shrink)

Abstract:This paper explores the contrast between mentalistic and behaviouristic interpretations of decision theory. The former regards credences and utilities as psychologically real, while the latter regards them as mere representations of an agent's preferences. Philosophers typically adopt the former interpretation, economists the latter. It is argued that the mentalistic interpretation is preferable if our aim is to use decision theory for descriptive purposes, but if our aim is normative then the behaviouristic interpretation cannot be dispensed with.

This essay criticizes the proposal recently defended by a number of prominent economists that welfare economics be redirected away from the satisfaction of people's preferences and toward making people happy instead. Although information about happiness may sometimes be of use, the notion of happiness is sufficiently ambiguous and the objections to identifying welfare with happiness are sufficiently serious that welfare economists are better off using preference satisfaction as a measure of welfare. The essay also examines and criticizes the position associated (...) with Daniel Kahneman and a number of co-authors that takes welfare to be ‘objective happiness’ – that is, the sum of momentary pleasures. (shrink)

One widespread argument against the efficacy of subjective well-being as a measure of well-being is the adaptation problem as formulated by Sen and Nussbaum: the phenomenon that people may adapt to deprivation and find satisfaction or happiness in objectively bad circumstances. It is not generally noticed that there are two distinct arguments for why the phenomenon of adaptation is a problem for subjective well-being as a measure of well-being. The Axiological Adaptation Argument is a counter-example to theories of well-being that (...) rely on mental states. The Epistemic Adaptation Argument illustrates that levels of happiness or satisfaction cannot be measured well when people have adapted. I argue that the most serious threat to subjective well-being measures is not the Axiological Argument, but the Epistemic Argument. I reflect on the implications the epistemic problem has for the empirical literature in general, and for research on the phenomenon of adaptation in particular. (shrink)

In traditional decision theory, utility is regarded as a mathematical representation of preferences to be inferred from agents hedonic experiences. Some go as far as to contend that utility is literally computed by specific neural areas and urge economists to complement or substitute their notion of utility with some neuro-psychological construct. In this paper, I distinguish three notions of utility that are frequently mentioned in debates about decision theory and examine some critical issues regarding their definition and measurability. Moreover, I (...) provide various empirical and conceptual reasons to doubt that economists should base decision theoretic analyses on some neuro-psychological notion of utility. (shrink)