The literature of economic theory, like that of philosophy, abounds in prefaces and prolegomena. Methodology and analysis of concepts take an important place in a science which has not found the sure path of development. But there is no sure path for methodology either. The selfconscious methodology of social science has been largely a borrowing from that of physical science, where procedures have developed to a stage of considerable maturity. But the analogy falls down where guidance is most needed, at (...) the points where social science is most likely to develop new concepts and new types of structure. Philosophers have not been lacking, indeed, to belittle the entire enterprise, and to deny the possibility of anything that could strictly be called social science. (shrink)

Distinctions have been proposed between systems of reasoning for centuries. This article distills properties shared by many of these distinctions and characterizes the resulting systems in light of recent findings and theoretical developments. One system is associative because its computations reflect similarity structure and relations of temporal contiguity. The other is "rule based" because it operates on symbolic structures that have logical content and variables and because its computations have the properties that are normally assigned to rules. The systems serve (...) complementary functions and can simultaneously generate different solutions to a reasoning problem. The rule-based system can suppress the associative system but not completely inhibit it. The article reviews evidence in favor of the distinction and its characterization. (shrink)

Henrich et al. propose that humans are genetically equipped with learning mechanisms that enable them to acquire the preferences and beliefs related to economic prosocial behaviors. In addition to their cross-cultural data, they cite developmental evidence in support of this theory. We challenge Henrich et al.'s interpretation of the developmental data in a discussion of recent work which suggests that preferences for altruism and fairness may have an innate basis.

Researchers from across the social sciences have found consistent deviations from the predictions of the canonical model of self-interest in hundreds of experiments from around the world. This research, however, cannot determine whether the uniformity results from universal patterns of human behavior or from the limited cultural variation available among the university students used in virtually all prior experimental work. To address this, we undertook a cross-cultural study of behavior in ultimatum, public goods, and dictator games in a range of (...) small-scale societies exhibiting a wide variety of economic and cultural conditions. We found, first, that the canonical model – based on self-interest – fails in all of the societies studied. Second, our data reveal substantially more behavioral variability across social groups than has been found in previous research. Third, group-level differences in economic organization and the structure of social interactions explain a substantial portion of the behavioral variation across societies: the higher the degree of market integration and the higher the payoffs to cooperation in everyday life, the greater the level of prosociality expressed in experimental games. Fourth, the available individual-level economic and demographic variables do not consistently explain game behavior, either within or across groups. Fifth, in many cases experimental play appears to reflect the common interactional patterns of everyday life. Key Words: altruism; cooperation; cross-cultural research; experimental economics; game theory; ultimatum game; public goods game; self-interest. (shrink)

In this paper, I show that the question of how dual process theories of reasoning and judgement account for conflict between System 1 (heuristic) and System 2 (analytic) processes needs to be explicated and addressed in future research work. I demonstrate that a simple additive probability model that describes such conflict can be mapped on to three different cognitive models. The pre-emptive conflict resolution model assumes that a decision is made at the outset as to whether a heuristic or analytic (...) process will control the response. The parallel-competitive model assumes that each system operates in parallel to deliver a putative response, resulting sometimes in conflict that then needs to be resolved. Finally, the default-interventionist model involves the cueing of default responses by the heuristic system that may or may not be altered by subsequent intervention of the analytic system. A second, independent issue also emerges from this discussion. The superior performance of higher-ability participants on reasoning tasks may be due to the fact that they engage in more analytic reasoning ( quantity hypothesis ) or alternatively to the fact that the analytic reasoning they apply is more effective ( quality hypothesis ). (shrink)

This is the classic work upon which modern-day game theory is based. What began as a modest proposal that a mathematician and an economist write a short paper together blossomed, when Princeton University Press published Theory of Games and Economic Behavior. In it, John von Neumann and Oskar Morgenstern conceived a groundbreaking mathematical theory of economic and social organization, based on a theory of games of strategy. Not only would this revolutionize economics, but the entirely new field of scientific inquiry (...) it yielded--game theory--has since been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations. And it is today established throughout both the social sciences and a wide range of other sciences. (shrink)