Much behavioral welfare economics assumes that expected utility theory does not accurately describe most human choice under risk. A substantial literature instead evaluates welfare consequences by taking cumulative prospect theory as the natural default alternative, at least where description is concerned. We present evidence, based on a review of previous literature and new experimental data, that the most empirically adequate hypothesis about human choice under risk is that it is heterogeneous, and that where EUT does not apply, more choice is (...) characterized by rank-dependent utility models than by CPT. Most of the apparently loss-averse choice behavior results from probability weighting rather than from direct disutility experienced when an outcome is framed as a loss against an idiosyncratic reference point. We then consider implications of this finding for methodological debates about how to model welfare effects of policies, and argue that abandonment of a dogmatic belief in CPT as the correct theory of risk human choice exposes a conceptual error that is widespread in behavioral welfare economics. We provide concluding reflections on second-order, philosophical issues around the grounding of normative commitments in policy-focused economics. (shrink)

Supper at Emmaus traces various important intellectual topics from the ancient world to the modern period. Generally, as in its treatment of the question of whether the long-standing contrast between cyclical and linear views of history is helpful, it introduces important thinkers who have considered the question. A preoccupation of the book is the appearance and reappearance across the centuries of patterns used to organize temporal and cultural experience. After an opening essay on transcendental truth and cultural relativism, the second (...) chapter traces a distinction, common in historical writings during the past two centuries, between an alleged ancient classical "cyclic" view of time and history, used to describe the claimed repetitiveness of and similarities between historical events ("nothing is new under the sun"), and a contrasting Jewish-Christian linear view, sometimes described as providential in that it moves through a series of unique events to some end intended by God. In the latter, history is "about something," the education of the human race or the redemption of humankind. As in each of the remaining essays, the book then attempts to draw out the limitations of what the current consensus on this topic has become. It does this for such things as our current understanding of religious toleration, humanism, natural law, and teleology. Some of the essays, such as those on debate about Augustine's understanding of marriage or the concluding illustrated essay on the baroque city of Lecce, are published for the first time. Others are based on previously published contributions to the scholarly literature, though generally each of these chapters concludes with a postscript that engages with current scholarly debate on the subject. (shrink)

If someone claims that individuals behave as if they violate the independence axiom when making decisions over simple lotteries, it is invariably on the basis of experiments and theories that must assume the IA through the use of the random lottery incentive mechanism. We refer to someone who holds this view as a Bipolar Behaviorist, exhibiting pessimism about the axiom when it comes to characterizing how individuals directly evaluate two lotteries in a binary choice task, but optimism about the axiom (...) when it comes to characterizing how individuals evaluate multiple lotteries that make up the incentive structure for a multiple-task experiment. We reject the hypothesis about subject behavior underlying this stance: we find that preferences estimated with a model that assumes violations of the IA are significantly affected when one elicits choices with procedures that require the independence assumption, as compared to choices elicited with procedures that do not require the assumption. The upshot is that one cannot consistently estimate popular models that relax the IA using data from experiments that assume the validity of the RLIM. (shrink)

Resenha do livro de Andrade, Abraháo Costa. O pote e a rodilha : tempo e imaginaçáo como história por fazer segundo o pensamento de Paul Ricoeur. Natal: EDUFRN, 2006. [Coleçáo Metafísica]. 134 páginas.

The essay, based on four years of living and teaching philosophy in Brazil, is a series of aphorisms about food and hunger as concerns that have left their mark on the Brazilian mind. Alimentary jokes and homilies are retold, gustatory episodes are recalled, larders and cuisines remarked, markets and mealtimes remembered—with constant reference to the idiom of Brazilian Portuguese. The style of thinking is “postphilosophical” in the sense developed in Part II of the author's Negative Dialectics and the End of (...) Philosophy[Longwood, 1990]: it does not so much argue theses as it displays the character of the topic. (shrink)

Resenha do livro de Giovanna Borradori. A filosofia americana: conversações com Quine, Davidson, Putnam, Nozick, Danto, Rorty, Cavell, MacIntyre e Kuhn . Traduçáo de Álvaro Lorencini. Sáo Paulo: Editora UNESP, 2003, 223 páginas.

Abstrac: In an extended discussion, within the context of a"philosophy offorestry", of the relationships of the concepts of truth and of tree some fundamental aspects of occidental metaphysics are examined from a Heideggerian perspective. But the paper tries to go beyond Heidegger's thematization of metaphysics in the context of pre-Socratic philosophy by establishing Indo-European etymology as a more inclusive horizon. In this manner, the transition from anti-metaphysics to post-metaphysics is anticipated.

In any list of famous last words, Socrates' are likely to figure near the top. Details of the final moments of celebrities tend anyway to exert a peculiar fascination upon the rest of us: life's very contingency provokes a need to see lives nevertheless as meaningful organic wholes, defined as such precisely by their final closure; so that even the most trivial aspects of their ending can come to seem bearers of profound significance, soliciting moral reflections apparently not less urgent (...) for their being quite unwarranted. From earliest times, this fascination with last moments has come to be concentrated in particular upon last words: situated at that most mysterious of borders, between life and death, they seem to look backwards and forwards at once, judging the speaker's own past life from the vantage-point of a future realm he is about to attain and hinting at the nature of what awaits us all from the perspective of that past life he still – however tenuously – shares with us. A moment earlier, and there is no reason to privilege any one discourse of the speaker's above another; a moment later, and his lips are sealed for ever. Only in that final moment can he seem to pass an unappealable judgement on himself, to combine in a single body two incompatible subjectivities, the one suffering and extremely mortal, the other dispassionate and transcendent. If he is a thinker or a man of action, this is his last chance to summarize a lifetime's meditation or experience in a pithy, memorable aphorism.If he is a celebrated poet, he can be imagined to have composed his own epitaph; if he is a Hellenistic poet, he may even in fact have done so. (shrink)

Resenha do livro de Juan Adolfo Bonaccini. Kant e o problema da coisa em si no Idealismo Alemáo : sua atualidade e relevância para a compreensáo do problema da Filosofia. Rio de Janeiro: Relume Dumará, 2003. 442 páginas [Coleçáo Metafísica 3].

Evidence of risk aversion in laboratory settings over small stakes leads to a priori implausible levels of risk aversion over large stakes under certain assumptions. One core assumption in statements of this calibration puzzle is that small-stakes risk aversion is observed over all levels of wealth, or over a â sufficiently largeâ range of wealth. Although this assumption is viewed as self-evident from the vast experimental literature showing risk aversion over laboratory stakes, it actually requires that lab wealth be varied (...) for a given subject as one evaluates the risk attitudes of the subject. We consider evidence from a simple design that tests this assumption, and find that the assumption is strikingly rejected for a large sample of subjects from a population of college students. We conclude that the implausible predictions that flow from these assumptions do not apply to one specialized population widely used to study economic behavior in laboratory experiments. (shrink)

The European Legacy, Volume 17, Issue 3, Page 419-420, June 2012.