Economics: Between Prediction and Criticism

51 Pages Posted: 1 Mar 2016 Last revised: 3 Apr 2017

See all articles by Itzhak Gilboa

Itzhak Gilboa

Tel Aviv University - Eitan Berglas School of Economics; HEC Paris - Economics & Decision Sciences

Andrew Postlewaite

University of Pennsylvania - Department of Economics

Larry Samuelson

Yale University - Department of Economics; Yale University - Cowles Foundation

David Schmeidler

Tel Aviv University

Multiple version iconThere are 3 versions of this paper

Date Written: November 22, 2016

Abstract

We suggest that one way in which economic analysis is useful is by offering a critique of reasoning. According to this view, economic theory may be useful not only by providing predictions, but also by pointing out weaknesses of arguments. It is argued that, when a theory requires a non-trivial act of interpretation, it's roles in producing predictions and offering critiques vary in a substantial way. We offer a formal model i which these different roles can be captured.

Keywords: Methodology, Models, Economic Modeling

JEL Classification: B40, B41

Suggested Citation

Gilboa, Itzhak and Postlewaite, Andrew and Samuelson, Larry and Schmeidler, David, Economics: Between Prediction and Criticism (November 22, 2016). International Economic Review, Forthcoming; PIER Working Paper No. 16-004; HEC Paris Research Paper No. ECO/SCD-2016-1182. Available at SSRN: https://ssrn.com/abstract=2739770 or http://dx.doi.org/10.2139/ssrn.2739770

Itzhak Gilboa (Contact Author)

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
972-3-640-6423 (Phone)
972-3-640-9908 (Fax)

HEC Paris - Economics & Decision Sciences

Paris
France

Andrew Postlewaite

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-7350 (Phone)
215-573-2057 (Fax)

HOME PAGE: http://www.econ.upenn.edu/~apostlew

Larry Samuelson

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

David Schmeidler

Tel Aviv University ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
+972-3-640-9643 (Phone)
+972-3-640-9357 (Fax)

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