Foundations of Rational Choice Under Risk

In this book, Paul Anand examines the normative interpretation of Subjective Expected Utility (SEU). He tests the philosophical and logical basis for associating SEU with rational choice. Decision theorists have increasingly come to accept the experimental evidence that subjects systematically violate the axiomatic assumptions of SEU, and as a result the past decade has witnessed an explosion of mathematical models that seek to capture this behaviour. A current issue is whether axioms of SEU really are canons of rationality. Anand discusses whether the new decision-theoretic models are more than just accounts of irrational behaviour. The main themes of this book are that, empirically, SEU is false, and that normatively it imposes unnecessary constraints on rational agency. Problems with Bayesianism are introduced and it is shown that useful distinctions between risk and uncertainty (in a Keynesian sense) can be made. Some of the radical methodological changes in economics that underpin theoretical developments in decision theory and economics are also discussed.

ISBN 0198774427   Pages 174 ISBN13 9780198774426 (What's this?)   Volumes 1 Publisher Oxford University Press   Weight (grammes) 248 Imprint Oxford University Press   Published in Oxford Format Paperback   Height (mm) 216 Publication date 10 Aug 1995   Width (mm) 137 DEWEY 330.0151   Spine width (mm) 12 DEWEY edition DC20   Academic level Tertiary education

Shows an agreeable lack of fetish for technical and mathematical presentation, and will serve as a fairly accessible introduction to the area for philosophical readers unfamiliar with the terrain David Phillips, University of Houston, Philosophical Review [Paul Anand makes] clearly a case for reversing the direction of much economic theorizing Times Higher Education Supplement

 Be the first to write a customer review