Behavioral Economics Commons^™

Time-Shifted Rationality And The Law Of Law's Leverage: Behavioral Economics Meets Behavioral Biology, Owen D. Jones

Owen Jones

A flood of recent scholarship explores legal implications of seemingly irrational behaviors by invoking cognitive psychology and notions of bounded rationality. In this article, I argue that advances in behavioral biology have largely overtaken existing notions of bounded rationality, revealing them to be misleadingly imprecise - and rooted in outdated assumptions that are not only demonstrably wrong, but also wrong in ways that have material implications for subsequent legal conclusions. This can be remedied. Specifically, I argue that behavioral biology offers three things of immediate use. First, behavioral biology can lay a foundation for both revising bounded rationality and fashioning …

Behavioral Economics Y Políticas Públicas: Algunos Problemas Y Sus Soluciones / Behavioral Economics And Public Policies: Some Problems And Their Solutions [En Español], Daniel A. Monroy

Daniel A Monroy C

Abstract

The main target of this paper is to show a behavioral economics approach to –some– public policies from a descriptive and a normative point of view. To meet the target, (i) the paper summarizes two cognitive biases: the status quo bias and the endowment effect, and then shows how these biases could affect the effectiveness of public policies in some relevant contexts: the availability of human organs for transplantation; people's bad eating habits; and environmental resources management. In addition, (ii) the paper suggests some strategies (nudges) about how behavioral economics could inform policy maker to design or to improve …

Age Differences In Social Discount Rates, Hayden T. Whitfield

Hayden T Whitfield

No abstract provided.

Cumulative Dominance In Multi-Attribute Choice: Benefits And Limits, Konstantinos Katsikopolous, Martin Egozcue, Luis Fuentes García

Martin Egozcue

No abstract provided.

Behavioral Economics: Origins, Methodology And “Work Tools”, Daniel A. Monroy

Daniel A Monroy C

This paper has two main objectives: (i) The main objective is to propose a theoretical and methodological delimitation of the Behavioral Economics approach. In this point, the paper argues that such delimitation involves a permanent tension with the hypotheses of rational choice theory of human behavior. (ii) The secondary objective of the paper focuses on the methodology submitted, for this, we present a couple of case studies in order to explain and test such methodology. Furthermore, the case studies will allow us to determinate some work tools of the Behavioral Economics approach.

Are People Probabilistically Challenged? Book Review Of Daniel Kahneman, Thinking, Fast And Slow (2011), Alex Stein

Alex Stein

Daniel Kahneman’s recent book, Thinking, Fast and Slow, is a must-read for any scholar and policymaker interested in behavioral economics. Thus far, behavioral economists did predominantly experimental work that uncovered discrete manifestations of people’s bounded rationality: representativeness, availability, anchoring, overoptimism, base-rate neglect, hindsight bias, loss aversion, and other misevaluations of probability and utility. This work has developed no causal explanations for these misevaluations. Kahneman’s book takes the discipline to a different level by developing an integrated theory of bounded rationality’s causes and characteristics. This theory holds that humans use two distinct modes of reasoning, intuitive (System 1) and deliberative (System …

Modelling Biased Judgement With Weighted Updating, Jesse A. Zinn

Jesse A Zinn

The weighted updating model is a generalization of Bayesian updating that allows for biased beliefs by weighting the functions that constitute Bayes’ rule with real exponents. This paper shows that weighting a distribution affects the information entropy of the resulting distribution, suggesting that weighted updating can model biases in which individuals mistake the information content of data. The paper augments the base model in two ways, allowing it to account for additional biases. The first expansion involves discrimination between data. The second allows the weights to vary over time. The paper also presents a set of sufficient conditions for the …

Mindscapes And Landscapes: Hayek And Simon On Cognitive Extension, Leslie Marsh

Leslie Marsh

Hayek’s and Simon’s social externalism runs on a shared presupposition: mind is constrained in its computational capacity to detect, harvest, and assimilate “data” generated by the infinitely fine-grained and perpetually dynamic characteristic of experience in complex social environments. For Hayek, mind and sociality are co-evolved spontaneous orders, allowing little or no prospect of comprehensive explanation, trapped in a hermeneutically sealed, i.e. inescapably context bound, eco-system. For Simon, it is the simplicity of mind that is the bottleneck, overwhelmed by the ambient complexity of the environmental. Since on Simon’s account complexity is unidirectional, Simon is far more ebullient about the prospects …

Stigmergy 3.0: From Ants To Economies, Leslie Marsh, Margery Doyle

Leslie Marsh

No abstract provided.

Information Projection: Model And Applications, Kristof Madarasz

Kristof Madarasz

Hayek's Philosophical Psychology, Leslie Marsh

Leslie Marsh

Hayek's philosophical psychology as set out in his The Sensory Order (1952) has, for the most part, been neglected. Despite being lauded by computer scientist grandee Frank Rosenblatt and by Nobel prize-winning biologist Gerald Edelman, cognitive scientists -- with a few exceptions -- have yet to discover Hayek's philosophical psychology. On the other hand, social theorists, Hayek's traditional disciplinary constituency, have only recently begun to take note and examine the importance of psychology in the complete Hayek corpus. This volume brings together for the first time state-of-the-art contributions from neuroscientists and philosophers of mind as well as economists and social …

Perspectives On Social Cognition, Leslie Marsh, Christian Onof

Leslie Marsh

No longer is sociality the preserve of the social sciences, or ‘‘culture’’ the preserve of the humanities or anthropology. By the same token, cognition is no longer the sole preserve of the cognitive sciences. Social cognition (SC) or, sociocognition if you like, is thus a kaleidoscope of research projects that has seen exponential growth over the past 30 or so years. That so many disciplines now invoke the term ‘‘social cognition,’’ shouldn’t tempt one into thinking that they are all denoting the same idea. On the contrary, with such methodologically and perspectivally diverse interests involved, there is every chance that …

Perspectives On Social Cognition, Leslie Marsh, Christian Onof

Leslie Marsh

No longer is sociality the preserve of the social sciences, or ‘‘culture’’ the preserve of the humanities or anthropology. By the same token, cognition is no longer the sole preserve of the cognitive sciences. Social cognition (SC) or, sociocognition if you like, is thus a kaleidoscope of research projects that has seen exponential growth over the past 30 or so years. That so many disciplines now invoke the term ‘‘social cognition,’’ shouldn’t tempt one into thinking that they are all denoting the same idea. On the contrary, with such methodologically and perspectivally diverse interests involved, there is every chance that …

Michael Wheeler: Reconstructing The Cognitive World: The Next Step, Leslie Marsh

Leslie Marsh

Michael Wheeler is the latest in a new wave of philosophical theorists that fall within a loose coalition of anti-representationalism (or anti-Cartesianism): Dynamical –, Embodied –, Extended –, Distributed –, and Situated –, theories of cognition (DEEDS an apt acronym). Against this background, cognition for Wheeler is, or should be, a more ecumenical concept. This ecumenical approach would still be amenable to making theoretical distinctions, the central one being the notion of offline and online styles of intelligence, a distinction that makes conceptual space for another closely related notion, that of propositional knowledge (knowing that) and tacit knowledge (knowing how).

Dewey: The First Ghost-Buster?, Leslie Marsh

Leslie Marsh

Ghost-busting, or less colloquially, anti-Cartesianism or non-representationalism, is a loose and internally fluid coalition (philosophical and empirical) comprising Dynamical, Embodied, Extended, Distributed, and Situated (DEEDS) theories of cognition. Gilbert Ryle – DEEDS’ anglophonic masthead [1] – supposedly exorcised the Cartesian propensity to postulate mind as an apparition-like entity somehow situated in the body. Ryle’s behaviouristic recommendation was, that just as we don’t see the wind blowing but only see the trees waving, so too should we conceive intelligence as manifest though action. The Cartesian ghost of old has mutated, taking the form of the ‘Machine in the Machine’, the brain …

A History Of Political Experience, Leslie Marsh

Leslie Marsh

This book survives superficial but fails deeper scrutiny. A facile, undiscerning criticism of Lectures in the History of Political Thought (LHPT) is that on Oakeshott’s own account these are lectures on a non-subject: ‘I cannot detect anything which could properly correspond to the expression “the history of political thought”’ (p. 32). This is an entirely typical Oakeshottian swipe – elegant and oblique – at the title of the lecture course he inherited from Harold Laski. If title and quotation sit awkwardly we should remember that Oakeshott never prepared the text for publication – a fortiori he did not prepare it …

Review Of Sweet Dreams: Philosophical Obstacles To A Science Of Consciousness, Leslie Marsh

Leslie Marsh

The question of how a physical system gives rise to the phenomenal or experiential (olfactory, visual, somatosensitive, gestatory and auditory), is considered the most intractable of scientific and philosophical puzzles. Though this question has dominated the philosophy of mind over the last quarter century, it articulates a version of the age-old mind–body problem. The most famous response, Cartesian dualism, is on Daniel Dennett’s view still a corrosively residual and redundant feature of popular (and academic) thinking on these matters. Fifteen years on from his anti-Cartesian theory of consciousness (Consciousness Explained, 1991), Dennett’s frustration with this tradition is still palpable. This …

Relativism, Reflective Equilibrium, And Justice, Justin Schwartz

Justin Schwartz

THIS PAPER IS THE CO-WINNER OF THE FRED BERGER PRIZE IN PHILOSOPHY OF LAW FOR THE 1999 AMERICAN PHILOSOPHICAL ASSOCIATION FOR THE BEST PUBLISHED PAPER IN THE PREVIOUS TWO YEARS.

The conflict between liberal legal theory and critical legal studies (CLS) is often framed as a matter of whether there is a theory of justice that the law should embody which all rational people could or must accept. In a divided society, the CLS critique of this view is overwhelming: there is no such justice that can command universal assent. But the liberal critique of CLS, that it degenerates into …