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.

The Internet and social media have opened niches for political exploitation of human dispositions to hyper-alarmed states that amplify perceived threats relative to their objective probabilities of occurrence. Researchers should aim to observe the dynamic “ramping up” of security threat mechanisms under controlled experimental conditions. Such research necessarily begins from a clear model of standard baseline states, and should involve adding treatments to established experimental protocols developed by experimental economists. We review these protocols, which allow for joint estimation of risk (...) preferences and subjective beliefs about probabilities and their distributions. Results we have obtained on such estimates, from populations in various countries, are gathered for comparison. Most people show moderate risk aversion in non-alarmed states. We also find universal heterogeneity in risk preference structures, with substantial sub-samples weighting probabilities in such a way as to display “probability pessimism”, while others make risky choices in accordance with expected utility theory. (shrink)

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)

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

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)

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

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)

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

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.

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)

Most philosophical accounts of the foundations of economics have assumed that economics is intended to be an empirical science concerned with human behaviour, though they have, of course, differed over the extent to which it has been or can be successful as such an enterprise. A prominent source of dissent against this consensus is Alexander Rosenberg. In his recent book, Rosenberg summarizes and completes his statement of a position that he has been developing for some time. He argues that although (...) economists evaluate one another's work according to shared and rigorous standards of adequacy, these standards are strictly internal, like those of mathematics, instead of being derived from discoveries about contingent relationships between theoretical statements and empirical facts. Economics, that is to say, is essentially conceptual rather than empirical inquiry. In the following discussion, I will provide grounds for resisting Rosenberg's conclusion. The point of this criticism, however, is not mainly negative. Most of the historical preoccupations of the philosophy of economics, like those of the philosophy of science in general, have been epistemological. Careful attention to Rosenberg's argument, however, redirects our attention to ontological questions about the objects of economics, and this redirection, I will maintain, is to be welcomed. I will argue that while the majority of philosophers of economics is correct, as against Rosenberg, in regarding economics as an empirical science, the conventional view as to the identity of its empirical objects should be substantially revised under the pressure of Rosenberg's criticisms. My critical analysis of the implications of Rosenberg's work for the ontological commitments of economics is intended to furnish one line of argument towards my own conception of the objects of economics. This conception, which is still preliminary in many respects, will be briefly sketched toward the end of the present paper; a detailed account of it is given in Ross and LaCasse. (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 essays in this collection step back to ask: Do the complex components of Dennett's work on intentionality, consciousness, evolution, and ethics themselves ...

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)

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 ...

An article by Alexandra Kirsch accepted for publication in Cognitive Processing occasioned debate among reviewers about broad methodological issues in cognitive science. One of these issues is the proper place of Popperian falsificationism in the interdisciplinary cluster. Another is the tension between abstract models and theories that apply to wide classes of cognitive systems, and models of more restricted scope intended to predict specifically human patterns of thought and behavior. The lead editorial in a Commentary debate invited by the journal’s (...) editors considers these issues from the perspective of a pragmatist philosophy of science inspired by Herbert Simon’s classic, MIT Press, Cambridge, 1969) reflections on the blurring of the distinction between science and engineering in cognitive science. (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.

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)

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)

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)

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)

In your simulation you will devise measures to try to relieve the severity of the current global recession and speed the re-emergence of global growth. Each of you will be assigned the identity of an actual person with a specific institutional role. You will be required to undertake web-based research on that person, that person’s institution, and the utility function the person would be expected to behave in accordance with, given their role.

For the book that forms the basis for your debate, you’ve either been assigned to defend the thesis of the lead article or its antithesis. The thesis and antithesis are one another’s logical opposites – their contradictions. Consult the course webpage area to read the precise proposition you’re responsible for defending.

Of crucial importance to all parts of the transport services and materials sector in South Africa is the way in which the Government chooses to implement its ambitious plans to reinvest in the country’s basic infrastructure. How will it navigate competing demands from urban and rural environments, given the divergent economics that describe them? How will it balance the goals of poverty fighting, skills empowerment, and keeping SA internationally competitive, as it considers infrastructure project options?

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.

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)

‘Naturalism’ about the ontology of society can most blandly be characterized as the belief that social phenomena are among the class of natural phenomena. Contemporary scholars are apt to regard this thesis as bland because its denial seems quaint at best, if not outright unhinged, after a century and a half of development in the social sciences. There has, however, been a powerful tradition in (at least) Western culture that has understood the ‘artificial’ as a primary contrast class with the (...) ‘natural’, and which has interpreted the social as a creation of human beings that stands over and against the natural realm. Often.. (shrink)

There may not be many points of consensus over what best promotes economic development, but here is one that has formed over the past decade: the institutional context matters a lot. This represents the single greatest shift in economic thinking about development since World War II, for there once was an almost equally clear consensus that institutions..

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)

Clark expresses reservations about Friston's reductive interpretation of action-oriented predictive processing (AOPP) models of cognition, but he doesn't link these reservations to specific alternatives. Neuroeconomic models of sub-cognitive reward valuation, which, like AOPP, integrate attention with action based on prediction error, are such an alternative. They interpret reward valuation as an input to neocortical processing instead of reducing it.