Under Risk, Over Time, Regarding Other People: Language and Rationality within Three Dimensions
The Center for the History of Political Economy Working Paper Series, Duke University
52 Pages Posted: 13 Feb 2018
Date Written: January 25, 2018
This paper conducts a systematic comparison of behavioral economics’s challenges to the standard accounts of economic behaviors within three dimensions: under risk, over time and regarding other people. A new perspective on two underlying methodological issues, i.e., interdisciplinarity and the positive/normative distinction, is proposed by following the entanglement thesis of Hilary Putnam, Vivian Walsh and Amartya Sen. This thesis holds that facts, values and conventions have interdependent meanings in science which can be understood by scrutinizing formal and ordinary language uses. The goal is to provide a broad and self-contained picture of how behavioral economics is changing the mainstream of economics.
Keywords: behavioral economics, economic rationality, expected utility, prospect theory, exponential discounting, hyperbolic discounting, self-interest, other-regarding behaviors, economic methodology, history of economics, philosophy of economics, economics and language
JEL Classification: A12, B21, B41, D01, D03, D81, D90, D64
Suggested Citation: Suggested Citation