Book list for independent research component Aizenman, J., and Pinto, B. (eds.), Managing Economic Volatility and Crises: A Practitioner’s Guide. Cambridge U.P. 978-0521855242..

To be uninterested in an issue is to not care about it one way or the other. To be disinterested in an issue is to devote attention to deciding on it, but to do so in a way that tries to discount one’s personal stake in the outcome.

Reply in Book Symposium on James Ladyman, Don Ross: 'Everything must go: metaphysics naturalized', Oxford: Oxford University Press, 2007.

In this study, Don Ross explores the relationship of economics to other branches of behavioral science, asking, in the course of his analysis, under what interpretation economics is a sound empirical science. The book explores the relationships between economic theory and the theoretical foundations of related disciplines that are relevant to the day-to-day work of economics -- the cognitive and behavioral sciences. It asks whether the increasingly sophisticated techniques of microeconomic analysis have revealed any deep empirical regularities -- whether (...) technical improvement represents improvement in any other sense. Casting Daniel Dennett and Kenneth Binmore as its intellectual heroes, the book proposes a comprehensive model of economic theory that, Ross argues, does not supplant, but recovers the core neoclassical insights, and counters the caricaturish conception of neoclassicism so derided by advocates of behavioral or evolutionary economics. Because he approaches his topic from the viewpoint of the philosophy of science, Ross devotes one chapter to the philosophical theory and terminology on which his argument depends and another to related philosophical issues. Two chapters provide the theoretical background in economics, one covering developments in neoclassical microeconomics and the other treating behavioral and experimental economics and evolutionary game theory. The three chapters at the heart of the argument then apply theses from the philosophy of cognitive science to foundational problems for economic theory. In these chapters, economists will find a genuinely new way of thinking about the implications of cognitive science for economics, and cognitive scientists will find in economic behavior, a new testing site for the explanations of cognitive science. (shrink)

Ontic structural realism (OSR) is crucially motivated by empirical discoveries of fundamental physics. To this extent its potential to furnish a general metaphysics for science may appear limited. However, OSR also provides a good account of the progress that has been achieved over the decades in a formalized special science, economics. Furthermore, this has a basis in the ontology presupposed by economic theory, and is not just an artifact of formalization. †To contact the author, please write to: 4th Floor, Humanities (...) Building, University of Alabama at Birmingham, 900 13th Street South, Birmingham, AL 35294‐1260; School of Economics, Leslie Social Science Building, University of Cape Town, Private Bag, Rondebosch 7701, Cape Town, South Africa; e‐mail: don.ross@uct.ac.za. (shrink)

Original essays by leading philosophers of science explore the question of whether metaphysics can and should be naturalized--conducted as part of natural science.

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)

A wave of recent work in metaphysics seeks to undermine the anti-reductionist, functionalist consensus of the past few decades in cognitive science and philosophy of mind. That consensus apparently legitimated a focus on what systems do, without necessarily and always requiring attention to the details of how systems are constituted. The new metaphysical challenge contends that many states and processes referred to by functionalist cognitive scientists are epiphenomenal. It further contends that the problem lies in functionalism itself, and that, to (...) save the causal significance of mind, it is necessary to re-embrace reductionism. We argue that the prescribed return to reductionism would be disastrous for the cognitive and behavioral sciences, requiring the dismantling of most existing achievements and placing intolerable restrictions on further work. However, this argument fails to answer the metaphysical challenge on its own terms. We meet that challenge by going on to argue that the new metaphysical skepticism about functionalist cognitive science depends on reifying two distinct notions of causality (one primarily scientific, the other metaphysical), then equivocating between them. When the different notions of causality are properly distinguished, it is clear that functionalism is in no serious philosophical trouble, and that we need not choose between reducing minds or finding them causally impotent. The metaphysical challenge to functionalism relies, in particular, on a naïve and inaccurate conception of the practice of physics, and the relationship between physics and metaphysics. Key Words: explanation; functionalism; mental causation; metaphysics; reductionism. (shrink)

Abstract In this paper, I argue that the traditional philosophical approach of taking cognitively and emotionally competent adult people to be the prototypical instances of agency should be revised in light of current work in the behavioral sciences. Logical consistency in application is better served by taking simple goal-directed and feedback-governed systems such as insects as the prototypes of the concept of agency, with people being agents ?by extension? in the same sense as countries or corporations.

Recently, philosophers have developed an extensive literature on social ontology that applies methods and concepts from analytic metaphysics. Much of this is entirely abstracted from, and unconcerned with, social science. However, Epstein (2015) argues explicitly that analytic social metaphysics, provided its account of ontological ‘grounding’ is repaired in specific ways, can rescue social science from explanatory impasses into which he thinks it has fallen. This version of analytic social ontology thus directly competes with radically naturalistic alternatives, in a way that (...) helps to clarify what makes some metaphysics genuinely scientific (that is, part of the scientific enterprise and worldview). I consider this competition, marshal considerations against the value to social science of analytic metaphysics, and sketch a contrasting scientific metaphysics for understanding the implications of revisionist social ontology in unified scientific ontology. (shrink)

We discuss Russell's 1913 essay arguing for the irrelevance of the idea of causation to science and its elimination from metaphysics as a precursor to contemporary philosophical naturalism. We show how Russell's application raises issues now receiving much attention in debates about the adequacy of such naturalism, in particular, problems related to the relationship between folk and scientific conceptual influences on metaphysics, and to the unification of a scientifically inspired worldview. In showing how to recover an approximation to Russell's conclusion (...) while explaining scientists' continuing appeal to causal ideas (without violating naturalism by philosophically correcting scientists) we illustrate a general naturalist strategy for handling problems around the unification of sciences that assume different levels of naïveté with respect to folk conceptual frameworks. We do this despite rejecting one of the premises of Russell's argument, a version of reductionism that was scientifically plausible in 1913 but is not so now. (shrink)

In this article, I critically respond to Herbert Gintis's criticisms of the behavioral-economic foundations of Ken Binmore 's game-theoretic theory of justice. Gintis, I argue, fails to take full account of the normative requirements Binmore sets for his account, and also ignores what I call the ‘scale-relativity’ considerations built into Binmore 's approach to modeling human evolution. Paul Seabright's criticism of Binmore, I note, repeats these oversights. In the course of answering Gintis's and Seabright's objections, I clarify and extend Binmore (...) 's theory in a number of respects, integrating it with Kim Sterelny's and Don Ross's recent work on the evolution of people as cultural entities. The account also yields a novel basis for choosing between socialism and what Binmore calls ‘whiggery’ as normative political programs. Key Words: theory of justice • bargaining theory • evolutionary game theory • human evolution • Ken Binmore • Herbert Gintis • Kim Sterelny. (shrink)

This chapter discusses the plausibility of the criticism against the thesis that external factors causally influence cognition and that they are, consequently, partly constitutive of cognition. The discussion should not be taken as implicitly proposing that the opposite theory is true, although the works of Adams and Aizawa suggest that they are defending internalism. This can be attributed to the fact that systems are, by definition, bounded; one must make assumptions about systems in developing cognitive models. This chapter defends the (...) position that metaphysical considerations should play no role in deciding how to model cognition. It further explains how there is no basis for a general fact of the matter about determining what is and what is not a cognitive system. (shrink)

Much work in game theory concerns mechanisms by which players can infer information about the utilities and beliefs of other players based on actions within games and pre-play signals. When game theory is applied to interactions among people, such analysis interprets them as ‘mindreading’. Recent work in cognitive science, however, suggests that human coordination rests more centrally on ‘mindshaping’, where interactants determine preferences jointly. As mindshaping is strategic, there is motivation to extend game theory to accommodate it. Conditional Game Theory (...) (CGT) is a strategic theory of mindshaping. We show how it can be used to help players of standard games identify correlated equilibrium, and thus solve games. We then extend CGT to address a challenge to the relevance of correlated equilibrium to empirical choice data, by showing how pre-play analysis using CGT can reconcile the Harsanyi Doctrine – assumed common priors among Bayesian players – with rank-dependent choice as observed in economic experiments. (shrink)

The rise of behavioral economics since the 1980s led to richer mutual influence between economic and psychological theory and experimentation. However, as behavioral economics has become increasingly integrated into the main stream in economics, and as psychology has remained damagingly methodologically conservative, this convergence has recently gone into reverse. At the same time, growing appreciation among economists of the limitations of atomistic individualism, along with advantages in econometric modeling flexibility by comparison with psychometrics, is leading economists to become more pluralistic (...) than psychologists about the ontology of behavioral causation and structures. This, combined with economists’ growing interest in network models, is drawing economists closer in theory and practice to sociologists who use quantitative or mixed methods. (shrink)

Ladyman and Ross argue that analytic metaphysics is a misguided enterprise that should give way to a naturalized metaphysics that aims to reconcile everyday and special-scientific ontologies with fundamental physics as the authoritative source of knowledge on the general structure of the universe. Le Bihan and Barton (argue, as against this, that analytic metaphysics remains useful as a basis for the body of work in AI known as “applied ontology.” They stop short of claiming, however, that analytic metaphysics is (...) useful as metaphysics. I consider a basis for making the stronger claim: Smith's project for building what he claims to be metaphysical foundations for applied ontology (and for AI generally). Ultimately, the stronger claim is rejected; but in the course of this dialectic new aspects of the naturalistic metaphysical project come to light, including relationships between it and the traditional metaphysical project of providing foundations for philosophical semantics of truth and reference. (shrink)

Every Thing Must Go aruges that the only kind of metaphysics that can contribute to objective knowledge is one based specifically on contemporary science as it ...

We consider the potential contribution of economics to an interdisciplinary research partnership between sociology and neuroscience. We correct a misunderstanding in previous literature over the understanding of humans as ‘social animals’, which has in turn led to misidentification of the potential relevance of game theory and the economics of networks to the social neuroscience project. Specifically, it has been suggested that these can be used to model mindreading. We argue that mindreading is at best a derivative and special basis for (...) social coordination, whereas the general and pervasive phenomenon on which it depends is mindshaping. We then outline the foundations of Conditional Game Theory as a mathematical model of mindshaping, which extends game theory without displacing its classic solution concepts, and which exploits economists’ experience in modeling networks. (shrink)

The essays in this collection step back to ask: Do the complex components of Dennett's work on intentionality, consciousness, evolution, and ethics themselves ...

This book argues that the only kind of metaphysics that can contribute to objective knowledge is one based specifically on contemporary science as it really is, and not on philosophers' a priori intuitions, common sense, or simplifications of science. In addition to showing how recent metaphysics has drifted away from connection with all other serious scholarly inquiry as a result of not heeding this restriction, this book demonstrates how to build a metaphysics compatible with current fundamental physics, which, when combined (...) with metaphysics of the special sciences, can be used to unify physics with the other sciences without reducing these sciences to physics itself. Taking science metaphysically seriously, this book argues, means that metaphysicians must abandon the picture of the world as composed of self-subsistent individual objects, and the paradigm of causation as the collision of such objects. The text assesses the role of information theory and complex systems theory in attempts to explain the relationship between the special sciences and physics, treading a middle road between the grand synthesis of thermodynamics and information, and eliminativism about information. The consequences of the books' metaphysical theory for central issues in the philosophy of science are explored, including the implications for the realism versus empiricism debate, the role of causation in scientific explanations, the nature of causation and laws, the status of abstract and virtual objects, and the objective reality of natural kinds. (shrink)

Three recent book-length studies in the philosophy of economics (Mirowski 2002, Davis 2003, Ross 2005) have drawn attention to the fact that mainstream economic theory has consistently avoided commitment to any particular model of the person. This is the most significant respect in which economics has kept aloof from part of psychology. The widespread belief, on the other hand, that economists’ attentiveness to the psychology of choice and decision had to wait for the Allais challenge and then for Kahneman (...) and Tversky is a myth. It is true that for a brief period after World War II economists led by Samuelson tried to operationalize choice as analytically derivative from observed consumer demand. This was a minor episode in the history of theory. Ross (2005) argues that, if anything, mainstream microeconomics has been more sensitive to theoretical fashions in the psychology of choice than has been good for it. (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)

Critics of mainstream economics typically rest important weight on the differences between people and the 'agents' that populate economic theory and economic models. Hollis and Nell (1975) is both representative of and ancestral to many more recent variations on the theme. Lately, the upgraded status of behavioral economics (BE) within the discipline's mainstream has encouraged a number of writers to use revolutionary rhetoric in promotion of a 'paradigm shift' that includes the rejection of 'rational economic man' (Ormerod 1994, Heilbroner and (...) Milburg 1995, Fullbrook 2003). The current leading developers of BE are generally more circumspect, claiming that their approach complements standard theory rather than promising to supplant it (Camerer and Loewenstein 2004, Angner and Loewenstein this volume). However, they generally join the more florid critics in supposing that microeconomics is bound to improve its empirical relevance to the extent that it substitutes the study of people for that of abstract economic agents. Another body of thought that promotes this view stems from Sen's (1977) attack on standard economic agents as 'rational fools', amplified in Davis's (2003) argument that since economic agents lack some essential properties of human individuals, economic theory requires fundamental reform if it is to make progress in explaining human behavior. (shrink)

Pathological gambling (PG) is a kind of ‘ideal puzzle’ for the economic model of the consumer. The pathological gambler takes pains to engage in activity that transparently has negative expected returns if utility varies positively with money. She also, typically, spends further resources on commitment devices designed to interfere with her gambling. These properties together describe an agent that is a kind of perfect foil for the rationally maximizing consumer. Recently, aspects of the neuropathology underlying the strange economic agency of (...) the pathological gambler are becoming understood. Thus PG is an ideal test bed phenomenon for working out relationships between economic modeling based on constrained optimization of utility and the new neuroscience of behavior. (shrink)

Leading addiction researchers survey the latest findings in addiction science, countering the simplistic cultural stereotypes of the addict.

The paper begins by providing a game-theoretic reconstruction of Gilbert’s (1989) philosophical critique of Lewis (1969) on the role of salience in selecting conventions. Gilbert’s insight is reformulated thus: Nash equilibrium is insufficiently powerful as a solution concept to rationalize conventions for unboundedly rational agents if conventions are solutions to the kinds of games Lewis supposes. Both refinements to NE and appeals to bounded rationality can plug this gap, but lack generality. As Binmore (this issue) argues, evolutive game theory readily (...) explains the origin of conventional behavior, but that is not Lewis’s project. Gilbert’s critique is generalized by reference to Bacharach’s (2006) work on team reasoning in games. The paper then argues that although Lewis’s account of the rationalization of conventions is shown by the reconstruction of Gilbert’s critique to be incomplete, Gilbert is wrong to conclude that classical (‘eductive’) game theory lacks the resources to explain conformity to conventions among people. A game-theoretic account of the dynamics of socialization, based on Ross’s (2005, 2006) idea of ‘game determination’, rationalizes choices of conventional strategies in overlapping generations contexts, provided agents are products of evolutionary selection and know that other players are also such products. (shrink)

I investigate the extent to which there might be, now or in the future, non-human animals that partake in the kind of fully human-style consciousness that has been taken by many philosophers to be the basis of normative personhood. I first sketch a conceptual framework for considering the question, based on a range of philosophical literature on relationships between consciousness, language and personhood. I then review the standard basis for largely a priori skepticism about the possibility that any non-human animal (...) could experience FHSC and be a person to any extent, and indicate empirically motivated grounds for rejecting such skepticism, at least with respect to a select group of hypersocial candidate species with communication systems we do not currently know are not languages: corvids, parrots, elephants, and toothed whales. Relevant facts about elephants are reviewed in some detail, as a mini case study. While it is suggested that elephants might partake in the sort of consciousness characteristic of personhood to some extent, grounds are given for expecting that this extent is sharply limited by comparison with normal humans. As these grounds are mainly aspects of elephants’ external niche, however, rather than known limitations in their inboard cognitive or representational capacities, the surprising conclusion emerges that elephants might acquire FHSC, and thereby become persons, if they can be brought into conversation with humans, a possibility opened by considerations canvassed in the paper. (shrink)

The most plausible of Yarkoni's paths to recovery for psychology is the least radical one: psychologists need truly quantitative methods that exploit the informational power of variance and heterogeneity in multiple variables. If they drop ambitions to explain entire behaviors, they could find a box full of design and econometric tools in the parts of experimental economics that don't ape psychology.

Our response amplifies our case for scientific realism and the unity of science and clarifies our commitments to scientific unity, nonreductionism, behaviorism, and our rejection of talk of “emergence.” We acknowledge support from commentators for our view of physics and, responding to pressure and suggestions from commentators, deny the generality supervenience and explain what this involves. We close by reflecting on the relationship between philosophy and science.

I discuss the role of economics in the study of social cognition. A currently popular view is that microeconomics should collapse into psychology partly because cognitive science has shown that valuation is constitutively social, whereas non-psychological economics insists that it is not. In the paper I resist this view, partly by reference to the relevant history of economic theory, and partly by reference to an alternative model of the way in which that theory complements, without reducing to, psychological accounts of (...) social cognition. (shrink)

That the rationality of individual people is ‘bounded’ – that is, finite in scope and representational reach, and constrained by the opportunity cost of time – cannot reasonably be controversial as an empirical matter. In this context, the paper addresses the question as to why, if economics is an empirical science, economists introduce bounds on the rationality of agents in their models only grudgingly and partially. The answer defended in the paper is that most economists are interested primarily in markets (...) and only secondarily in the dynamics of individual decisions – specifically, they are interested in these dynamics mainly insofar as they might systematically influence the most useful approaches to modeling interesting markets. In market contexts, bounds on rationality are typically generated by institutional and informational properties specific to the market in question, which arise and are sustained by structural dynamics that do not originate in or reduce to individuals' decisions or psychologic.. (shrink)

A principal source of interest in behavioral economics has been its advertised contributions to policies aimed at ‘nudging’ people away from allegedly natural but self-defeating behavior toward patterns of response thought more likely to improve their welfare. This has occasioned controversies among economists and philosophers around the normative limits of paternalism, especially by technical policy advisors. One recent suggestion has been that ‘boosting,’ in which interventions aim to enhance people’s general cognitive skills and representational repertoires instead of manipulating their choice (...) environments behind their backs, avoids the main normative challenges. A limitation in most of this literature is that it has focused on relatively sweeping policy recommendations and consequently on strong polar alternatives of general paternalism and strict laissez faire. We review a real instance, drawn from a consulting project we conducted for an investment bank, of a proposed intervention that is more typical of the kind that economists are more often actually called upon to offer. In this example, the sophistication of current tools for preference attribution, combined with philosophical externalism about the semantics of preferences that makes it less plausible to attribute their literal self-conscious representation to people as propositional attitude content becomes more tightly refined, blocks applicability of the distinction between nudging and boosting. This seems to call for irreducible, context-specific ethical judgment in assessing the appropriateness of the forms of paternalism that economists must actually wrestle with in going about their everyday business. (shrink)

The hypothesis that humans are superior to non-humans by virtue of higher cognitive powers is often supported by two recurrent fallacies: that any competence shown by humans but not by our closest living relatives must be unique to humans; and that grades of intelligence can be inferred from behavior without regard to motivational structures.

It is generally recognized that descriptive and normative individualism are logically independent theses. This paper defends the stronger view that recognition of the falsehood of descriptive individualism is crucial to understanding the evolutionary and developmental basis of normative individualism. The argument given for this is not analytic; rather, it is based on empirical generalizations about the evolution of markets with specialized labor, about the nature of information processing in large markets, and about the socialization of human children.