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)

For most of the problems that economists consider, the assumption that agents are self-interested works well enough, generating predictions that are broadly consistent with observation. In some significant cases, however, we find economic behavior that seems to be inconsistent with self-interest. In particular, we find that some public goods and some charitable ventures are financed by the independent voluntary contributions of many thousands of individuals. In Britain, for example, the lifeboat service is entirely financed by voluntary contributions. In all rich (...) countries, charitable appeals raise large amounts of money for famine relief in the Third World. The willingness of individuals to contribute to such projects is an economic fact that requires an explanation. (shrink)

We explore the idea that a group or ‘team’ of individuals can be an agent in its own right and that, when this is the case, individual team members use team reasoning, a distinctive mode of reasoning from that of standard decision theory. Our approach is to represent team reasoning explicitly, by means of schemata of practical reasoning in which conclusions about what actions should be taken are inferred from premises about the decision environment and about what agents are seeking (...) to achieve. We use this theoretical framework to compare team reasoning with the individual reasoning of standard decision theory, and to compare various theories of team agency and collective intentionality. (shrink)

The Oxford Handbook of Philosophy of Economics is a reference work on philosophical issues in the practice of economics. It is motivated by the view that there is more to economics than general equilibrium theory, and that the philosophy of economics should reflect the diversity of activities and topics that currently occupy economists. Contributions in the book are thus closely tied to on-going theoretical and empirical concerns in economics. Contributors include both philosophers of science and economists. Articles fall into three (...) general categories: received views in philosophy of economics, on-going controversies in microeconomics, and issues in modeling, macroeconomics, and development. Specific topics include methodology, game theory, experimental economics, behavioral economics, neuroeconomics, computational economics, data mining, interpersonal comparisons of utility, measurement of welfare and well-being, growth theory and development, and microfoundations of macroeconomics. (shrink)

The chapter reviews recent theoretical and empirical developments concerning the theory of team reasoning in game theoretic interactions.

For most of the problems that economists consider, the assumption that agents are self-interested works well enough, generating predictions that are broadly consistent with observation. In some significant cases, however, we find economic behavior that seems to be inconsistent with self-interest. In particular, we find that some public goods and some charitable ventures are financed by the independent voluntary contributions of many thousands of individuals. In Britain, for example, the lifeboat service is entirely financed by voluntary contributions. In all rich (...) countries, charitable appeals raise large amounts of money for famine relief in the Third World. The willingness of individuals to contribute to such projects is an economic fact that requires an explanation. (shrink)

When my family discusses how we should spend a summer holiday, we start from certain common understandings about our preferences. We prefer self-catering accommodation to hotels, and hotels to campsites. We prefer walking and looking at scenery and wildlife to big-city sightseeing and shopping. When it comes to walks, we prefer walks of six miles or so to ones which are much shorter or much longer, and prefer well-marked but uncrowded paths to ones which are either more rugged or more (...) popular. And so on. These common understandings greatly simplify the task of choosing between holiday destinations and activities, by allowing us quickly to eliminate many options. But what does it mean to say that we prefer one thing to another? (shrink)

I argue that an ecologically distributed conception of instrumental rationality can and should be extended to a socially distributed conception of instrumental rationality in social environments. The argument proceeds by showing that the assumption of exogenously fixed units of activity cannot be justified; different units of activity are possible and some are better means to independently given ends than others, in various circumstances. An important social heuristic, the mirror heuristic, enables the flexible formation of units of activity in game theoretic (...) situations, including collective units where these are instrumentally effective. In effect, the mirror heuristic makes the formation of units of activity endogenous to instrumental rationality. Moreover, the mirror heuristic is a conditional metaheuristic, which depends on mind reading of the heuristics of other players rather than on predictions of their behavior. Such mind reading can be regarded as emerging from an arms race between behavioral mimicry and ever smarter behavior reading. Even though unilateral mind reading may have benefits, the mirror metaheuristic illustrates that mutual mind reading has distinctive functions in responding to the challenges of social complexity. If simple heuristics can make us smart in the right environments, then social heuristics can make us smarter still. (shrink)

Abstract Orthodox decision theory presupposes that agency is invested in individuals. An opposing literature allows team agency to be invested in teams whose members use distinctive modes of team reasoning. This paper offers a new conceptual framework, inspired by David Lewis's analysis of common reasons for belief, within which team reasoning can be represented. It shows how individuals can independently endorse a principle of team reasoning which prescribes acting as a team member conditional on assurance that others have endorsed the (...) same principle. It argues that there can be such assurance even when no individual has an obligation to act on team reasoning. *This paper originated in a lecture that I gave at a Colloquium on Collective Intentions at Erasmus University Rotterdam. I thank participants, and particularly Govert den Hartogh, for comments. The analysis presented in this paper is an offshoot of a larger project, which uses David Lewis's work as the starting point for a reconstruction of the foundations of game theory. That project is joint work with Robin Cubitt. The specific idea of using this approach to analyse team reasoning grew out of a discussion with Michael Bratman. My work was supported by the Leverhulme Trust. (shrink)

This paper proposes a concept of intentional cooperation for mutual benefit. This concept uses a form of team reasoning in which team members aim to achieve common interests, rather than maximising a common utility function, and in which team reasoners can coordinate their behaviour by following pre-existing practices. I argue that a market transaction can express intentions for mutually beneficial cooperation even if, extensionally, participation in the transaction promotes each party’s self-interest.

We-thinking theories allow groups to deliberate as agents. They have been introduced into the economic domain for both theoretical and empirical reasons. Among the few scholars who have proposed formal approaches to illustrate how we-thinking arises, Bacharach offers one of the most developed theories from the game theoretic point of view. He presents a number of intuitions, not always mutually consistent and not fully developed. In this article, I propose a way to complete Bacharach’s theory, generalizing the interdependence hypothesis and (...) building on his intuition about vacillation. It is a simple model of vacillation between the I and we-modes of reasoning, as a way in which we-thinking can come to mind in the face of a decision problem. The vacillation model makes we-reasoning more easily usable in game theory. (shrink)