research product . Other ORP type . 2020

Savage's response to Allais as Broomean reasoning

Dietrich, Franz; Staras, Antonios; sugden, robert;
Open Access English
  • Published: 01 May 2020
  • Publisher: HAL CCSD
  • Country: France
Abstract
URL des Documents de travail : https://centredeconomiesorbonne.cnrs.fr/publications/ Voir aussi l'article basé sur ce document de travail paru dans "Journal of Economic Methodology, Taylor & Francis (Routledge), 2021, 28 (2), pp.143-164. Documents de travail du Centre d'Economie de la Sorbonne 2020.16 - ISSN : 1955-611X International audience Leonard Savage famously contravened his own theory when first confronting the Allais Paradox, but then convinced himself that the had made an error. We examine the formal structure of Savage's ‘error-correcting’ reasoning in the light of (i) behavioural economists' claims to identify the latent preferences of individuals who violate conventional rationality requirements and (ii) John Broome's critique of arguments which presuppose that rationality requirements can be achieved through reasoning. We argue that Savage's reasoning is not vulnerable to Broome's critique, but does not provide support for the view that behavioural scientists can identify and counteract errors in people's choices.
Subjects
free text keywords: reasoning, rationality, Savage, behavioural economics, Broome, Allais Paradox, JEL: B - History of Economic Thought, Methodology, and Heterodox Approaches/B.B4 - Economic Methodology/B.B4.B41 - Economic Methodology, JEL: C - Mathematical and Quantitative Methods/C.C1 - Econometric and Statistical Methods and Methodology: General/C.C1.C18 - Methodological Issues: General, JEL: D - Microeconomics/D.D0 - General/D.D0.D01 - Microeconomic Behavior: Underlying Principles, JEL: D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty, JEL: D - Microeconomics/D.D9 - Intertemporal Choice/D.D9.D90 - General, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, [SHS.STAT]Humanities and Social Sciences/Methods and statistics, [QFIN]Quantitative Finance [q-fin], reasoning, rationality, Savage, behavioural economics, Broome, Allais Paradox, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, [SHS.STAT]Humanities and Social Sciences/Methods and statistics, [QFIN]Quantitative Finance [q-fin], jel:B - History of Economic Thought, Methodology, and Heterodox Approaches/B.B4 - Economic Methodology/B.B4.B41 - Economic Methodology, jel:C - Mathematical and Quantitative Methods/C.C1 - Econometric and Statistical Methods and Methodology: General/C.C1.C18 - Methodological Issues: General, jel:D - Microeconomics/D.D0 - General/D.D0.D01 - Microeconomic Behavior: Underlying Principles, jel:D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty, jel:D - Microeconomics/D.D9 - Intertemporal Choice/D.D9.D90 - General
Funded by
UKRI| The Network for Integrated Behavioural Science - The Science of Consumer Behaviour
Project
  • Funder: UK Research and Innovation (UKRI)
  • Project Code: ES/P008976/1
  • Funding stream: ESRC
,
ANR| ColAForm
Project
ColAForm
Collective Attitude Formation
  • Funder: French National Research Agency (ANR) (ANR)
  • Project Code: ANR-16-FRAL-0010
,
EC| NormativeEconomics
Project
NormativeEconomics
Reconstructing normative economics on a foundation of mutual advantage
  • Funder: European Commission (EC)
  • Project Code: 670103
  • Funding stream: H2020 | ERC | ERC-ADG
,
ANR| CHOp
Project
CHOp
Coping with Heterogeneous Opinions
  • Funder: French National Research Agency (ANR) (ANR)
  • Project Code: ANR-17-CE26-0003
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