I ON THE PRIMITIVE TERM OF LOGISTICf IN this article I propose to establish a theorem belonging to logistic concerning some connexions, not widely known, ...

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)

This classic undergraduate treatment examines the deductive method in its first part and explores applications of logic and methodology in constructing mathematical theories in its second part. Exercises appear throughout.

Now in its fourth edition, this classic work clearly and concisely introduces the subject of logic and its applications. The first part of the book explains the basic concepts and principles which make up the elements of logic. The author demonstrates that these ideas are found in all branches of mathematics, and that logical laws are constantly applied in mathematical reasoning. The second part of the book shows the applications of logic in mathematical theory building with concrete examples that draw (...) upon the concepts and principles presented in the first section. Numerous exercises and an introduction to the theory of real numbers are also presented. Students, teachers and general readers interested in logic and mathematics will find this book to be an invaluable introduction to the subject. (shrink)

Describes and evaluates a number of existing criticisms of the formal theory of rationality and subjective expected utility theory. The author argues that rationality is not a behavioural entity, but rather has to do with the relation between an agent's preferences and his or her behaviour.

What on earth are economic theorists like me trying to accomplish? This paper discusses four dilemmas encountered by an economic theorist: The dilemma of absurd conclusions: Should we abandon a model if it produces absurd conclusions or should we regard a model as a very limited set of assumptions that will inevitably fail in some contexts? The dilemma of responding to evidence: Should our models be judged according to experimental results? The dilemma of modelless regularities: Should models provide the hypothesis (...) for testing or are they simply exercises in logic that have no use in identifying regularities? The dilemma of relevance: Do we have the right to offer advice or to make statements that are intended to influence the real world? (shrink)

It is argued that, contrary to a rather prevalent view within economic theory, rationality does not imply Bayesianism. The note begins by defining these terms and justifying the choice of these definitions, proceeds to survey the main justification for this prevalent view, and concludes by highlighting its weaknesses.