This book details the results of the authors' research using laboratory animals to investigate individual choice theory in economics-consumer-demand and labour supply behaviour and choice under uncertainty. The use of laboratory animals provides the opportunity to conduct controlled experiments involving precise and demanding tests of economic theory with rewards and punishments of real consequence. Economic models are compared to psychological and biological choice models along with the results of experiments testing between these competing explanations. Results (...) of animal experiments are used to address questions of social policy importance. (shrink)

Economic theory may explain the behavior of animals. Its application to animals is not straightforward, however.

Rational choice theory is often presented as essential to the truly scientific study of economics. To the contrary, in this paper I argue that when rational choice is treated as the key to a science of human agency, it ensnares economics in certain intractable dilemmas. Drawing on hermeneutic philosophy, I argue that economists need to distinguish legitimate from illegitimate uses of rational choice theory. Failure to do so not only leads to self-defeating research goals, but also mires (...) the discipline in an extreme form of free-market ideology. Economists thus have not only empirical but also ethical and political reasons for rejecting the mainstream deployment of rational choice. The paper concludes by briefly sketching a philosophically defensible use of rational choice in economics – one that is more sensitive to the expressive dimensions of human agency and the limits of mechanistic causality. (shrink)

This contribution reviews the main normative and positive arguments that can used in the assessment of the costs and benefits of food marketing restrictions, focusing specifically on theoretical and empirical developments in the economics of advertising, consumer behaviour and industrial organization since the 70s.

Following Amartya Sen’s insistence to expand the framework of rational choice theory by taking into account ‘non-utility information,’ economists, political scientists and philosophers have recently concentrated their efforts in analysing the issues related to rights, freedom, diversity intentions and equality. Thomas Boylan and Ruvin Gekker have gathered essays that reflect this trend. The particular themes addressed in this volume include: the measurement of diversity and freedom, formal analysis of individual rights and intentions, judgment aggregation under constraints and strategic manipulation (...) in fuzzy environments. Some papers in the volume also deal with philosophical aspects of normative social choice. (shrink)

“Economic man” assumes not only self-interest, but also rationality of choices. The finding that ultimatum game offers can be explained by ambiguity aversion as well as pessimism, plus other findings, suggests the usefulness of taking bounded rationality more into account. Neurodevelopmental and heritability research supports the authors' emphasis on the importance of social learning and socialization.

Economists and philosophers disagree about the concept of choice used in economics. Some behavioural economists argue that economic models of choice will improve as they become more and more psychologically realistic. Don Ross argues that this argument fails because its hidden assumption – that the economic concept of choice is the same as the psychological counterpart – is false. Ross conjectures that the economic concept of choice concerns a population-scale pattern of behavioural changes (...) in response to incentives. We conduct a survey experiment to test two predictions that Ross’s conjecture generates. The statistical analysis of our data confirms our predictions, although with some qualifications. In interpreting our results, we distinguish two versions of commonsensible realism, strong and weak, and propose the weak one as a plausible explanation of our results. Weak commonsensible realism also produces further testable hypotheses. Some methodological implications of our study are discussed. (shrink)

The descriptive viewpoint in rational choice has generated an important Standard Rational Choice Theory revision. This viewpoint has meant the introduction of relevant psychological considerations that Rational Choice Theory tied to the neoclassical economics is unable to heed In this paper I suggest a way to expand the descriptive viewpoint by theorizing how some factors, coming from the social and cultural environment, operate within rational choice. That troublesome issue concerning the overall validity of economic laws (...) is also a question here; specifically, if these descriptive proposals expand the explanation of the disturbing causes of economic laws, or if they actually call into question their fundamental principles, encouraging consideration of some economic issues in a quite new, different manner. (shrink)

Even though Patrick Suppes made important contributions to utility theory, his final views on economic choice are quite critical of the expected-utility theories of rational choice. The aim of the present paper is to expose in a unified way his final views on economic choice and freedom. These views are part of his conception of causality and rationality.

This paper describes the way in which a certain representation of basic scientific knowledge can be coupled with traditional microeconomic analysis to provide an analysis of rational research planning or agenda setting in basic science. Research planning is conceived as a resource allocation decision in which resources are being allocated to activities directed towards the solution of basic scientific problems. A structuralist representation of scientific knowledge is employed to provide a relatively precise characterization of a basic scientific problem.

Given the endowment effect, the role of attention in decision-making, and the framing effect, most behavioral economists agree that it would be a mistake to accept the satisfaction of revealed preferences as the normative criterion of choice. Some have suggested that what makes agents better off is not the satisfaction of revealed preferences, but ‘true’ preferences, which may not always be observed through choice. While such preferences may appear to be an improvement over revealed preferences, some philosophers of (...) economics have argued that they face insurmountable epistemological, normative, and methodological challenges. This article introduces a new kind of true preference – values-based preferences – that blunts these challenges. Agents express values-based preferences when they choose in a manner that is compatible with a consumption plan grounded in a value commitment that is normative, affective, and stable for the agent who has one. Agents who choose according to their plans are resolute choosers. My claim is that while values-based preferences do not apply to every choice situation, this kind of preference provides a rigorous way for thinking about classic choice situations that have long interested behavioral economists and philosophers of economics, such as ‘Joe-in-the-cafeteria.’. (shrink)

This dissertation proposes a new reading and appraisal of an important theory of distributive justice, Ronald Dworkin's "Equality of Resources" . ER is traditional in holding that choices made by rational, ignorant and purely self-interested beings are relevant to distributive justice. ER is novel both in its use of such choices and in incorporating the idea that one's success is largely one's own responsibility into liberal egalitarianism. ;I argue that the tax-and-redistribution scheme Dworkin proposes to make actual distributions just is (...) flawed because he misconceives the role of choice. He errs in thinking that the conditions for person X to receive compensation depend on the choices of such beings, although he is right, I argue, insofar as the relevant choices include X's hypothetical choices. Dworkin errs in that ER implies that whether X meets these conditions can depend on X's irrational choices, although he is right that whether X meets these conditions can depend on some of X's actual choices. ER becomes flawed, I argue, when Dworkin derives a tax-and-redistribution scheme designed to achieve distributive justice in reality from the auction he proposes for making hypothetical distributions just. ;I then consider whether ER withstands stock objections and how plausible it is relative to rival Theories. Dworkin argues that ER, but not Rawls' Theory, meets the following condition for a Theory to be plausible: the distributions a Theory deems just must be sensitive to choices. I argue that Dworkin's argument is no longer plausible once we realize to which choice sensitivity principle he is himself committed. However, I argue, Seana Shiffrin's objection to ER fails because she misunderstands the role of choice in ER, although she is right insofar as there is a related, though superficial, objection. I also argue that ER is inconsistent and show how to resolve this inconsistency without leaving ER vulnerable to attack by G. A. Cohen's rival Theory. I trace ER's inconsistency and the failure of Dworkin's argument against Rawls' Theory to Dworkin's method of justification. (shrink)

Psychologists have a long tradition of studying human behavior, strengths and weaknesses, biases and limitations. Economists have constructed normative frameworks that capture the most important elements of human decision-making and developed powerful tools to determine individual and strategic choices in a variety of situations. Only recently have their strengths been combined and economic models enriched with key ingredients found in psychological studies.This volume covers four of the most important themes in this interdisciplinary field: feelings, inconsistencies, limitations and biases. Each (...) chapter contributes to a more comprehensive and accurate modelling and description of human behavior. Its four parts cover: the origins, formation, and evolution of beliefs; consistency, commitment, and intertemporal separability of dynamic choices; attention, preference formation, and risk evaluation in limited cognition; and affective behaviour, specifically the role of emotions in decision making. (shrink)

Offering a new answer to an age-old problem: the meaning of a just or equitable distribution of resources, Julian Le Grand examines the principal interpretations of equity used by economists and political philosophers. He argues that none captures the essence of the term as well as an alternative conception relating equity to the existence or otherwise of individual choice. Le Grand shows that this conception is not only philosophically well-grounded but is also directly relevant to key areas of distributional (...) policy. His theoretical argument is complemented by detailed discussion of the application of the central idea to specific areas of policy, including the distribution of health and health care, central government grants to local governments and the measurement of income for tax purposes. Equity and Choice is written by an economist, but is intended for political philosophers and social policy analysts as well as economists. Hence the key chapters are written in a non-technical fashion, with specialized material relegated to appendices. This book is a unique combination of philosophical, economic and policy analysis and represents a major contribution in all three areas. (shrink)

Rawls’s consideration not to include the choice of economic systems as part of a theory of justice is inconsistent with his comments on redistribution and the political effects of economic inequality. When Rawls’s discussion of economic systems and his discussion of economic inequalities is examined, it is apparent that the selection of economic systems is a pertinent topic for a theory of justice. The propensity for the primary social good of self-respect to be satisfied (...) can be affected by the selection of economic systems. Rawls has incorrectly determined the selection of economic systems to be unimportant if different economic systems can be more advantageous to the satisfaction of self-respect than others. When socialism and Rawls’s version of regulated capitalism are compared, socialism is a maximin solution, and accordingly will be selected by people within the original position under the veil of ignorance. (shrink)

An original examination of the relevance of behavioral economics for the practice of medical ethics.

"Canada, like other industrial nations, is undergoing widespread social change at a faster pace than ever before. Many features of our basic institutions are being transformed and some of the values on which they were based are being weakened or swept away to be replaced by others. As this Royal Commission indicated in its first report, Challenges and Choices, the scope and implications of these changes call "into question basic assumptions, values, and institutions at every level of society, from the (...) shop floor to the cabinet room, to the international economic system," but while many values change, others endure."--. (shrink)

The phrase 'economic system' refers to the organizational arrangements and processes through which a society makes its production and consumption decisions. In this book, Professor Conkin explores the diversity of economic systems and the choices societies must face in determining the economic systems best suited to their needs. He discusses the alternative objectives and alternative decision modes that are available to societies. Objectives such as efficiency, growth, liberty, and equality - though themselves desirable - frequently involve trade-offs; (...) the more complete attainment of any one objective may involve the partial sacrifices of another. In pursuit of its objectives, each society uses a combination of decision modes. Professor Conklin examines six of these: free enterprise, price controls, subsidies, taxation, non-price regulations, and public enterprise. He ends with a discussion of the processes societies use to make their choice among objectives and decision modes. (shrink)

_Pathologies of Rational Choice Theory_, a book written by Donald Green and Ian Shapiro and published in 1994, excited much controversy among political scientists and promoted a dialogue among them that was printed in a double issue of the journal Critical Review in 1995. This new book reproduces thirteen essays from the journal written by senior scholars in the field, along with an introduction by the editor of the journal, Jeffrey Friedman, and a rejoinder to the essays by Green (...) and Shapiro. The scholars—who include John Ferejohn, Morris P. Fiorina, Stanley Kelley, Jr., Robert E. Lane, Peter C. Ordeshook, Norman Schofield, and Kenneth A. Shepsle—criticize, agree with, or build on the issues raised by Green and Shapiros critique. Together the essays provide an interesting and accessible way of focusing on competing approaches to the study of politics and the social sciences. (shrink)

Introduction George Loewenstein, Daniel Read, and Roy F. Baumeister P _L sychology and economics have a classic love-hate relationship. ...

The ArgumentThis paper examines the interaction between economic models and policy advice through a case study of the U.K. government's Panel of Independent Forecasters. The Panel, which met for the first time in February 1993, was part of the government's response to the policy vacuum created by its departure from the European Exchange Rate Mechanism. The paper focuses on the policy recommendations made by the Panel and their foundation in economic models. It is argued that, because of their (...) ambiguity, economic models do not provide an “objective” basis for policy making. Rather, they provide a level epistemological basis for debating the various social, political, and moral theories that can be used to frame economic policy. The paper concludes that although economic models often serve to depoliticize economic issues, they also have the potential to do exactly the opposite — namely, repoliticize them by connecting economics to wider social and moral debates. (shrink)

This essay is my analysis of Eamonn Butler’s fine book, Public Choice: a Primer. I suggest that Butler’s book is especially useful for philosophers, most of whom are to this day unfamiliar with public choice theory. This body of economics studies the role that universal self-interest plays in politics. This is an unpleasant truth for many philosophers, who have the Hegelian view of government as the realm of disinterested charity. Butler reviews the history of public choice economics, (...) discusses the various schools of the theory, and the major areas of application. (shrink)

Behavioural welfare economics has lately been challenged on account of its use of the satisfaction of true preferences as a normative criterion. The critique contests what is taken to be an implicit assumption in the literature, namely that true preferences are context-independent. This assumption is considered not only unjustified in the behavioural welfare economics literature but unjustifiable – true preferences are argued to be, at least sometimes, context-dependent. This article explores the implications of this ‘critique of the inner rational agent’. (...) I argue that the critique does not support a wholesale shift away from the use of true preferences as an evaluative standard in normative economics; instead, the critique implies that behavioural welfare economists need to inquire into and establish the ‘source’ of particular context-dependent choices in individuals’ decision-making. The source determines the permissibility of correcting individuals’ context-dependent choices and can, in some situations, support decisive welfare judgements. (shrink)

To properly comply with the Health Sector Act of 1992 a functioning competition should be introduced in the interests of the insured of the German Statutory Health Insurance, while still maintaining the principle of solidarity. This is a critical order-political aim, because the principles of solidarity and selfresponsibility as typically understood are functionally in contradiction. This paper analyzes the important measures of the Organizational Reform and concludes, that the principle of self-responsibility ought to obtain priority. Therefore, the German legislature ought (...) to focus on further competitively oriented reform steps. (shrink)

Human life in contemporary society is extremely complex and there are various external factors that directly affect the realization in the individual ends. In this work I analyze the effects of the global market economy, manifested by a mode of production and distribution of goods and services in the form of a global network of economic relations, which involve people, transnational corporations and political and social institutions in moral sphere of people, affecting their choices and the realization of these (...) choices. Individual freedom can be understand as a freedom to realize our choices in the environment of a global economic market, but it is still problematic in the sense that the choices of goods and services available in this market do not reflect individual choices, but a set of preferences standardized according to the market itself. In this paper I will reflect about the individual freedom in economic globalization pointing from the debate between Pettit and Berlin that social freedom advocated by Republican Petit can be satisfactory for a start. (shrink)

Problems and choices -- Who shall live? -- The physician : the captain of the team -- The hospital : the house of hope -- Drugs : the key to modern medicine -- Paying for medical care.

The healthcare systems of the United States and United Kingdom are vastly different. The former relies primarily on private sector incentives and market forces to allocate medical care services, while the latter is a centrally planned system funded almost entirely by the public sector. Therefore, each nation represents divergent views on the relative efficacy of the market or government in achieving social objectives in the area of medical care policy. Since its inception in 1948, the National Health Services of the (...) United Kingdom has consistently emphasized equity in the allocation of medical services. It has done so by creating a system whereby services are universally free of charge at the point of entry. Conversely, the United States has relied upon the evolution of a perplexing array of public and private sector insurance schemes centered more around consumer choice than equity in allocation. (shrink)

This book presents an exploration of the idea of the common or social good, extended so that alternatives with different populations can be ranked. The approach is, in the main, welfarist, basing rankings on the well-being, broadly conceived, of those who are alive. The axiomatic method is employed, and topics investigated include: the measurement of individual well-being, social attitudes toward inequality of well-being, the main classes of population principles, principles that provide incomplete rankings, principles that rank uncertain alternatives, best choices (...) from feasible sets, and applications. The chapters are divided, with mathematical arguments confined to the second part. The first part is intended to make the arguments accessible to a more general readership. Although the book can be read as a defense of the critical-level generalized-utilitarian class of principles, comprehensive examinations of other classes are included. (shrink)

Property rights are the rules governing ownership in society. This Element offers an analytical framework to understand the origins and consequences of property rights. It conceptualizes of the political economy of property rights as a concern with the follow questions: What explains the origins of economic and legal property rights? What are the consequences of different property rights institutions for wealth creation, conservation, and political order? Why do property institutions change? Why do legal reforms relating to property rights such (...) as land redistribution and legal titling improve livelihoods in some contexts but not others? In analyzing property rights, the authors emphasize the complementarity of insights from a diversity of disciplinary perspectives, including Austrian economics, public choice, and institutional economics, including the Bloomington School of institutional analysis and political economy. (shrink)

There has been a significant growth in the literature on nudging and behavioural economics, since Richard Thaler and Cass Sunstein published their well-known book Nudge: Improving Decisions about H...