Abstract

The ‘explanation paradox’ due to Reiss can be resolved by recognizing that economic models that begin with assumptions of rational choice compel explanatory assent because they exploit a pattern of reasoning humans are hardwired to accept as explanatory: what cognitive scientists call the theory of mind. I review recent research in evolutionary anthropology, neuroscience and developmental psychology that substantiates the conclusion that explanations exploiting expectations and preferences (i.e. beliefs and desires) were hard wired into Hominins as the solution to a design problem in early human evolution, and continue to drive our explanatory and predictive expectations even well beyond their domain of effective employment. Economic models employ this explanatory strategy outside the domain of the effective employment of rational choice models. This is the source of our conviction that they explain in spite of their failure to satisfy any reasonable criteria for scientific explanation.