Introducing a New Logical Framework for Modelling Reflexivity in Financial Markets
35 Pages Posted: 23 Aug 2008
Date Written: August 22, 2008
The vicious positive and negative feedback loops (vicious reflexivities) that occur in all areas of the social sciences have the same structure as the logical paradoxes of the Liar and Anti-Liar, and of the corresponding Russell and Anti-Russell paradoxes in set theory. In recent decades the logical and set-theoretic paradoxes have been resolved within the new field of paraconsistent mathematics. The paper argues that the vicious reflexivity apparent in the social sciences can be resolved by a similar move. An outline of the paraconsistent mathematics framework adequate for the modelling of social science reflexivities is presented and discussed.
Keywords: reflexivity, behavioural finance, evolutionary game theory, paraconsistent set theory
JEL Classification: C00, G10, G14
Suggested Citation: Suggested Citation