: This paper develops four related claims: 1. Critical thinking should focus more on decision making, 2. the heuristics and bias literature developed by cognitive psychologists and behavioral economists provides many insights into human irrationality which can be useful in critical thinking instruction, 3. unfortunately the “rational choice” norms used by behavioral economists to identify “biased” decision making narrowly equate rational decision making with the efficient pursuit of individual satisfaction; deviations from these (...) norms should not be treated as an irrational bias, 4. a richer, procedural theory of rational decision making should be the basis for critical thinking instruction in decision making. (shrink)

Rational choice theory enjoys unprecedented popularity and influence in the behavioral and social sciences, but it generates intractable problems when applied to socially interactive decisions. In individual decisions, instrumental rationality is defined in terms of expected utility maximization. This becomes problematic in interactive decisions, when individuals have only partial control over the outcomes, because expected utility maximization is undefined in the absence of assumptions about how the other participants will behave. Game theory therefore incorporates not only (...) rationality but also common knowledge assumptions, enabling players to anticipate their co-players' strategies. Under these assumptions, disparate anomalies emerge. Instrumental rationality, conventionally interpreted, fails to explain intuitively obvious features of human interaction, yields predictions starkly at variance with experimental findings, and breaks down completely in certain cases. In particular, focal point selection in pure coordination games is inexplicable, though it is easily achieved in practice; the intuitively compelling payoff-dominance principle lacks rational justification; rationality in social dilemmas is self-defeating; a key solution concept for cooperative coalition games is frequently inapplicable; and rational choice in certain sequential games generates contradictions. In experiments, human players behave more cooperatively and receive higher payoffs than strict rationality would permit. Orthodox conceptions of rationality are evidently internally deficient and inadequate for explaining human interaction. Psychological game theory, based on nonstandard assumptions, is required to solve these problems, and some suggestions along these lines have already been put forward. Key Words: backward induction; Centipede game; common knowledge; cooperation; epistemic reasoning; game theory; payoff dominance; pure coordination game; rational choice theory; social dilemma. (shrink)

Many economic theorists hold that social institutions can lead otherwise irrational agents to approximate the predictions of traditional rational choice theory. But there is little consensus on how institutions do so. I defend an economic internalist account of the institution-actor relationship by explaining economic rationality as a feature of individuals whose decision-making is aided by institutional structures. This approach, known as the subjective transaction costs theory, represents apparently irrational behavior as a rational response to high subjective transaction (...) costs of thinking and deciding. The theory has two attractive features. First, it reconciles rational choice theory with the increasing body of evidence cataloguing putative errors in economic decision-making. Second, it vindicates the explanatory power of individual choice against externalist challenges; the subjective transaction costs theory keeps economic rationality in the head. (shrink)

This book is the result of rethinking the standard playbook for critical thinking courses, to include only the most useful skills from the toolkits of philosophy, cognitive psychology, and behavioral economics. -/- The text focuses on: -/- - a mindset that avoids systematic error, more than the ability to persuade others - the logic of probability and decisions, more than than the logic of deductive arguments - a unified treatment of evidence, covering statistical, causal, and best-explanation (...) inferences -/- The unified account of evidence I offer is a broadly Bayesian one, but there aren’t any daunting theorems. (Without knowing it, students are taught to use a gentle form of the Bayes factor to measure the strength of evidence and to update.) It’s also shown how this framework illuminates aspects of the scientific method, such as the proper design of experiments. -/- The link above allows Anonymous Guest Access without an account. (shrink)

Behavioral economics focuses mainly on how limitations of the human cognitive apparatus, risk attitudes, and human sociality affect decision making. The former two lead to deviations from rationality standards, the latter to deviations from rational self-interest. Some of these research interests are also shared by evolutionary psychology which, however, explains the observed deviations by features of the human genetic endowment conjectured to have evolved under fierce selection pressure in early human phylogeny. Important as the decision-making theoretical (...) perspective of the two disciplines is, it will be claimed to be too narrow to fully account for what an evolutionary approach has to say about economic behavior. This is particularly true regarding the questions of what choices are made and what causes them, i.e., the motivational aspects of behavior. In the language of economics this points to the agents’ preferences. This article discusses how preferences relate to the human genetic endowment, how they can change over time, and what conclusions have to be drawn from extending the analysis to the motivational side. (shrink)

This study puts forward a rounder conceptual model for interpreting short and long-term effects of choice behavior. Kahneman’s (2011) distinction between cognitive processing System 1 and System 2 reflect the more rigorous distinction between Brief and Immediate and Extended and Elaborated Relational Responding. Specifically, we provide theoretical accounts and applied examples of how nudging, or the manipulation of environmental contingencies, works on the creation and modification of relational frames. The subset denominated educational nudges, or boosts, are particularly useful (...) towards their maintenance. We define and illustrate the fundamental mediating role of verbal behavior towards formulating rules, which inform and guide choice behavior over time. Furthermore, we suggest adopting the Implicit Relations Association Procedure to inform how coherent and immediate responding to new relational frames may be, whenever choices need be made. We provide empirical accounts of consumer behavior, stereotypy and prejudices, eating behavior, and overcoming cognitive biases. The conclusions depict a promising way forward towards an improved model for interpreting and overcoming human errors thanks to changes in the contingencies of choice behavior. (shrink)

There is a close but largely unexplored connection between law and economics and cognitive psychology. Law and economics applies economic models, modes of analysis, and argument to legal problems. Economic theory can be applied to legal problems for predictive, explanatory, or evaluative purposes. In explaining or assessing human action, economic theory presupposes a largely unarticulated account of rational, intentional action. Philosophers typically analyze intentional action in terms ofdesiresandbeliefs. I intend to perform some action because Ibelievethat (...) it will (is likely to) produce an outcome that Idesire. This standard “belief-desire” model of action invokes what philosophers of psychology and action theorists aptly refer to as a “folk psychology.”. (shrink)

The article aims to demonstrate that the nudge theory suffers from three main weaknesses stemming from its theoretical dependence on behavioural economics. The first two weaknesses endanger the paternalistic goal, whereas the third does not justify the libertarian attribute. The first weakness lies in the incomplete realistic characterisation of behavioural economics theory that is the central theoretical pillar of Nudge theory. The second weakness is even more relevant. The normative model of behavioural economics is neoclassical rationality. It (...) can be applied to choices in conditions of risk, when it is possible to forecast the probability of the outcomes of one’s choices. On the contrary the real life problems are inside a complex and uncertain environment. In an uncertain environment the neoclassical algorithms are no longer valid, in that they postulate the knowledge of the probability of the outputs. Thus errors and bias, as observed in behavioural economics, are not such in many instances, but they are instead adaptive and therefore rational responses to the context of decision-making. Therefore nudge theory that pursues the normative paternalistic objective of neutralising the bias and judgement errors discovered by behavioural economics and putting paternalistically the citizen on the right track, is in fact proceeding in the wrong direction. The last weakness concerns an assumption of Nudge theory about the duality of mind. System 1 represents the intuitive mind, while System 2 corresponds to the analytical one. System 1 tends to make decisions quickly and unconsciously, while System 2 follows a slow and conscious process. Biases and judgement errors are mainly generated by System 1. However, System 2 may later intervene to correct them. From this premise, the Nudge theory affirms its libertarian character. In this paper I will argue that the dualism of the mind would not entail the reversibility of some nudges, particularly of default states. In this way the fundamental pillar is weakened to justify the libertarian character of the nudge theory. (shrink)

Over the past decades psychological theories have made significant headway into economics, culminating in the 2002 (partially) and 2017 Nobel prizes awarded for work in the field of Behavioral Economics. Many of the insights imported from psychology into economics share a common trait: the presumption that decision makers use shortcuts that lead to deviations from rational behaviour (the Heuristics-and-Biases program). Many economists seem unaware that this viewpoint has long been contested in cognitive psychology. Proponents (...) of an alternative program (the Ecological-Rationality program) argue that heuristics need not be irrational, particularly when judged relative to characteristics of the environment. We sketch out the historical context of the antagonism between these two research programs and then review more recent work in the Ecological-Rationality tradition. While the heuristics-and-biases program is now well-established in (mainstream neo-classical) economics via Behavioral Economics, we show there is considerable scope for the Ecological-Rationality program to interact with economics. In fact, we argue that there are many existing, yet overlooked, bridges between the two, based on independently derived research in economics that can be construed as being aligned with the tradition of the Ecological-Rationality program. We close the paper with a discussion of the open challenges and difficulties of integrating the Ecological Rationality program with economics. (shrink)

The domain of “folk-economics” consists in explicit beliefs about the economy held by laypeople, untrained in economics, about such topics as, for example, the causes of the wealth of nations, the benefits or drawbacks of markets and international trade, the effects of regulation, the origins of inequality, the connection between work and wages, the economic consequences of immigration, or the possible causes of unemployment. These beliefs are crucial in forming people's political beliefs and in shaping their reception of (...) different policies. Yet, they often conflict with elementary principles of economic theory and are often described as the consequences of ignorance, irrationality, or specific biases. As we will argue, these past perspectives fail to predict the particular contents of popular folk-economic beliefs and, as a result, there is no systematic study of the cognitive factors involved in their emergence and cultural success. Here we propose that the cultural success of particular beliefs about the economy is predictable if we consider the influence of specialized, largely automatic inference systems that evolved as adaptations to ancestral human small-scale sociality. These systems, for which there is independent evidence, include free-rider detection, fairness-based partner choice, ownership intuitions, coalitional psychology, and more. Information about modern mass-market conditions activates these specific inference systems, resulting in particular intuitions, for example, that impersonal transactions are dangerous or that international trade is a zero-sum game. These intuitions in turn make specific policy proposals more likely than others to become intuitively compelling, and, as a consequence, exert a crucial influence on political choices. (shrink)

This paper examines issues of ontology and methodology in behavioral economics: the attempt to increase the explanatory and predictive power of economic theory by providing it with more psychologically plausible foundations. Of special interest is the epistemological status of neoclassical economic theory within behavioral economics, the runaway success story of contemporary economics. Behavioral economists aspire to replace the fundamental assumptions of orthodox, neoclassical economic theory. Yet, behavioral economists have gone out of their way (...) to praise those very assumptions. Matthew Rabin, for example, writes that behavioral economics “is not only built on the premise that [orthodox] economic methods are great, but also that most mainstream economic assumptions are great.” These apparently contradictory attitudes toward neoclassical theory raises the question of what, exactly, its epistemological status within behavioral economics is. This paper argues that the paradox can be resolved, and the question answered, by thinking of the epistemological status of neoclassical theory within behavioral economics in terms of Max Weber’s ideal types: analytical constructs that are not intended to be descriptively true of anything but which nevertheless can be used for a variety of theoretical purposes. The analysis is consistent with many of the insights from the philosophical literature on models in science and has important implications for the practice of economics—behavioral and neoclassical—as well as for the very nature of rationality. (shrink)

Different applications of synthetic biology are alike in that their possible negative consequences are highly uncertain, potentially catastrophic, and perhaps irreversible; therefore, they are also alike in that public attitudes about them are fertile ground for behavioral economic phenomena. Findings from behavioral economics suggest that people may not respond to such applications according to the normal rules of economic evaluation, by which the value of an outcome is multiplied by the mathematical probability that the outcome will occur. (...) Possibly, then, synthetic biology applications challenge the normative postulates of the standard approach, too.I want to first consider how some of the phenomena described by behavioral economists—and behavioral scientists more broadly—might affect people's perceptions of the uncertainties associated with synthetic biology. My analysis will be far from complete, however, because behavioral economics is essentially the study of human behavior, and thus its reach is potentially vast and its development longstanding and ongoing. Nonetheless, I hope to give an indicative perspective on how some aspects of behavioral economics might affect the assessment and perceived acceptability of synthetic biology. I will then consider the issue of agency. Should policy‐makers respect people's reactions to synthetic biology when those reactions are known to be driven by behavioral economic phenomena rather than following the normative postulates of rational choice theory? Or should policy‐makers dismiss these reactions as inherently biased? I will argue that the normative force of these human reactions (probably) depends on phenomenon and context. (shrink)

ABSTRACTThe work of Daniel Kahneman and his colleagues has established that people do not always think and act “rationally.” However, this amounts to saying that Kahneman and his collaborators interpret people's behavior in experimental settings to be inconsistent with the narrow understanding of rationality deployed by orthodox neoclassical economists. Whether this means that people make poor decisions in the real world, however, has not been demonstrated, a fact that calls into doubt the significance of the list of heuristics and biases (...) generated by behavioral economists. Dual-process theory was meant to give theoretical coherence to this list, but its empirical foundation, too, retains the premises of “rational” choice as an ideal. (shrink)

Conviction Narrative Theory (CNT) is a theory of choice underradical uncertainty– situations where outcomes cannot be enumerated and probabilities cannot be assigned. Whereas most theories of choice assume that people rely on (potentially biased) probabilistic judgments, such theories cannot account for adaptive decision-making when probabilities cannot be assigned. CNT proposes that people usenarratives– structured representations of causal, temporal, analogical, and valence relationships – rather than probabilities, as the currency of thought that unifies our sense-making and decision-making faculties. According (...) to CNT, narratives arise from the interplay between individual cognition and the social environment, with reasoners adopting a narrative that feels “right” to explain the available data; using that narrative to imagine plausible futures; and affectively evaluating those imagined futures to make a choice. Evidence from many areas of the cognitive, behavioral, and social sciences supports this basic model, including lab experiments, interview studies, and econometric analyses. We identify 12 propositions to explain how the mental representations (narratives) interact with four inter-related processes (explanation, simulation, affective evaluation, and communication), examining the theoretical and empirical basis for each. We conclude by discussing how CNT can provide a common vocabulary for researchers studying everyday choices across areas of the decision sciences. (shrink)

Disrespect for the truth, the rise of conspiracy thinking, and a pervasive distrust in experts are widespread features of the post-truth condition in current politics and public opinion. Among the many good explanations of these phenomena there is one that is only rarely discussed: that something is wrong with our deeply entrenched intellectual standards of (i) using our own critical thinking without any restriction and (ii) respecting the judgment of every rational agent as epistemically relevant. In this paper, (...) I will argue that these two enlightenment principles—the Principle of Unrestricted Critical Thinking and the Principle of Democratic Reason—not only conflict with what is rationally required from a purely epistemic point of view, but also have bad cognitive consequences in furthering the spread of conspiracy theories and undermining trust in experts. I will then explain in more detail why we should typically defer to experts without using any of our own reasons regarding the subject matter. Moreover, I will show what place this leaves for critical thinking and why it does not have the crazy consequences that the critics expect. (shrink)

Some current attempts to go beyond the narrow scope of rational choice theory (RCT) in the social sciences and the artificial reconstructions it sometimes provides focus on the arguments that people give to justify their beliefs and behaviors themselves. But the available argumentation theories are not constructed to fill this gap. This article argues that relevance theory, on the contrary, suggests interesting tracks. This provocative idea requires a rereading of Sperber and Wilson's theory. Actually, the authors do not (...) explicitly support RCT, and Sperber has even strongly criticized methodological individualism, which most of the time underlies RCT, in favor of infra-individualism. A key point of the argument presented here is to show that Sperber and Wilson do not firmly distinguish between infra-individualism and subintentionality. Only subintentionality is needed. Key Words: argumentation • rational choice • relevance theory • methodological individualism. (shrink)

In this paper, I review the literature on rational choice theory to scrutinize a number of criticisms that philosophers have voiced against its usefulness in economics. The paper has three goals: first, I argue that the debates about RCT have been characterized by disunity and confusion about the object under scrutiny, which calls into question the effectiveness of those criticisms. Second, I argue that RCT is not a single and unified choice theory—let alone an empirical theory (...) of human behavior—as some critics seem to suppose. Rather, there are several variants of RCT used in economics. Third, I propose that we think of RCT as a set of distinct research strategies to appreciate its diversity. This account implies that the effectiveness of any criticism depends on the variant of RCT we are considering. (shrink)

Current psychology of human reasoning is divided into several different approaches. For instance, there is a major dispute over the question whether human beings are able to apply norms of the formal models of rationality such as rules of logic, or probability and decision theory, correctly. While researchers following the “heuristics and biases” approach argue that we deviate systematically from these norms, and so are perhaps deeply irrational, defenders of the “bounded rationality” approach think not only that the evidence for (...) this conclusion is problematic but also that we should not, at least not very often, use formal norms in reasoning. I argue that while the evidence for heuristics and biases is indeed questionable, the bounded rationality approach has its limits too. Most especially, we should not infer that formal norms play no role in a comprehensive theory of rationality. Instead, formal and bounded rules of reasoning might even be connected in a more comprehensive theory of rationality. (shrink)

I aim to analyze in this dissertation what a desirable basic institutional structure looks like from the perspective of rationality. While the main topic is thus normative in nature, I start by clarifying in the first part what the notion of rationality exactly entails. I do so by focusing explicitly on the economic conception of rationality, according to which a rational individual is motivated to serve his self-interest on the basis of cost-benefit calculations. Such a Homo Economicus is characterized (...) by his intentional and instrumental actions, his perfectly informed beliefs and his exogenously given and egoistic preferences. In my view, however, this model is inadequate if one aims to understand what it means to be rational. The requirements that actions should be instrumental, beliefs should be based on perfect information and preferences should be exogenously given and egoistic in nature turn out to be overly demanding in this respect. That is why I propose to drop these assumptions in what I label the minimal conception of rationality. Since the latter turns out to be very formal indeed, I propose two further alternatives, which focus not so much on the choice of means to achieve certain goals, as they focus on the choice of these goals themselves. According to the first, broad conception, actions are rational if they are based on good reasons, which are further qualified as well-informed beliefs and autonomous preferences. According to the second, expressive conception, actions, beliefs and preferences are rational if they express the things the individual at hand cares about. The latter requires that individuals can reflect upon and identify with their reasons, which implies a capacity to reflect upon and distance themselves from their own bundle of preferences. In the second part of this dissertation, I try to show the value and limitations of these conceptions by applying them to the context of large-scaled elections. In this respect, it becomes immediately clear that the economic conception fails to explain why quite a lot of people go out and vote. After all, since a single vote has only an infinitesimal impact on the electoral result, it does not enable people to serve their interests or realize their goals. This leads to the so-called voting paradox, according to which no rational individual will decide to vote. The standard solution is to assume that individuals vote because they derive satisfaction from the very act itself. However, this strategy is rather ‘ad hoc’ and does not explain how people vote once they find themselves inside the voting booth. The expressive conception of rationality does better in this respect. It suggests that people vote because they care about democracy in general or about a specific political candidate or ideology. Since they conceive of themselves as being a good citizen, they express this aspect of their identity by going out to vote. In the third part of this dissertation, I analyze more fully the normative implications of the different conceptions of rationality. More specifically, I try to answer the question which basic institutional structure is desirable if one assumes that people are by and large rational. This immediately shows that both the normative issue and the explanatory issue are closely connected. In my view, proposals regarding institutional design and reform should be based on empirically adequate models of individual actions and motivations. This search for a realistic utopia goes against the conventional strategy of most economists. They rely on the Homo Economicus model, even if this fails to explain individual behavior. To explain more fully what the normative implications are of the counterfactual assumption that all people are economically rational, I focus on the work of James Buchanan. In his theory of constitutional choice, he argues in favor of a minimal state whose only task is to make sure that the market functions properly. Buchanan thus favors strict constitutional limitations for governments, which tend to expand beyond legitimate borders as soon as politicians and public servants are allowed to serve their own interests. In my view, however, the abovementioned criticisms of the Homo Economicus model have theoretical as well as normative implications. After all, the empirically supported fact that a majority of individuals does not act in economically rational ways creates more room for legitimate government intervention. Expressively rational citizens will, for example, more easily agree on the necessity and desirability of a collective provision of certain public goods. In addition, expressively rational politicians and public servants can be more easily trusted to serve the public interest rather than their narrowly defined self-interest. As an alternative to Buchanan’s one-sided focus on economic rationality and the market, I focus on the work of Samuel Bowles en Herbert Gintis. More specifically, I explore their work on the phenomenon of strong reciprocity, which refers to the widespread tendency of people to reward prosocial behavior and punish antisocial behavior, even if this is costly for themselves. Since this is clearly economically irrational, Bowles and Gintis propose to complement the Homo Economicus model with the Homo Reciprocans model. This model, which comes close to the expressive conception of rationality, is able to incorporate the insight that social norms surrounding reciprocity, cooperation and fairness are crucial in regulating interactions. At the normative level, Bowles and Gintis stress that such norms often lead to socially desirable outcomes, since they enable people to live in harmony without relying on coercive and costly government interventions. This suggests that the debate between proponents of the market on the one hand and the state on the other hand neglects the importance of communities where people spontaneously interact on the basis of generally prosocial norms. As such, the insights of Bowles and Gintis lead to a defense of a basic institutional structure in which markets, states and communities mutually complement and reinforce each other. They also justify a general optimism as regards to the capacity and motivation of people to try and improve the rules and institutions that govern their everyday lives. (shrink)

Habermas has argued that many of the endemic socio- economic problems of Western society are either symptoms or prod ucts of a 'lopsided' process of cultural rationalization, one that has emphasized instrumental forms of rationality over communicative. But other than presenting a rather general typology of lifeworld pathologies, Habermas has not done much to specify what these problems might be, nor has he provided any 'middle-range' analysis of the mechanisms through which they might be generated. This paper discusses some (...) of the ways in which, consistent with Haber mas's general framework, rational choice theory can be used for pre cisely this task. In this analysis, rational choice theory is not presented as a comprehensive theory of action, but is employed as a critical- diagnostic tool that allows the theorist to identify undesirable social interaction patterns that arise from a broader instrumentalization of the lifeworld. Key Words: critical theory • Habermas • instrumental rationality • market failure • rational choice theory. (shrink)

Arguing that ecological thinking can animate an epistemology capable of addressing feminist, multicultural, and other post-colonial concerns, this book critiques the instrumental rationality, hyperbolized autonomy, abstract individualism, and exploitation of people and places that western epistemologies of mastery have legitimated. It proposes a politics of epistemic location, sensitive to the interplay of particularity and diversity, and focused on responsible epistemic practices. Starting from an epistemological approach implicit in Rachel Carson’s scientific projects, the book draws, constructively and critically, (...) on ecological theory and practice, on (post-Quinean) naturalized epistemology, and on feminist and post-colonial theory. Analyzing extended examples from developmental psychology, from medicine and law, and from circumstances where vulnerability, credibility, and public trust are at issue, the argument addresses the constitutive part played by an instituted social imaginary in shaping and regulating human lives. The practices and examples discussed invoke the responsibility requirements central to this text’s larger purpose of imagining, crafting, articulating a creative, innovative, instituting social imaginary, committed to interrogating entrenched hierarchical social structures, en route to enacting principles of ideal cohabitation. (shrink)

This volume presents new conceptual and experimental studies which investigate the connection between vagueness and rationality from various systematic directions, such as philosophy, linguistics, cognitive psychology, computing science, and economics. Vagueness in language use and cognition has traditionally been interpreted in epistemic or semantic terms. The standard view of vagueness specifically suggests that considerations of agency or rationality, broadly conceived, can be left out of the equation. Most recently, new literature on vagueness has been released which suggests (...) that the standard view is inadequate and that considerations of rationality should factor into more comprehensive models of vagueness. The methodological approaches presented here are diverse, ranging from philosophical interpretations of rational credence for vagueness to adaptations of choice theory, probabilistic models of pragmatic reasoning, evolutionary game theory, and conceptual space models of categorisation. (shrink)

On Folk Epistemology explores how we ascribe knowledge to ourselves and others. Empirical evidence suggests that we do so early and often in thought as well as in talk. Since knowledge ascriptions are central to how we navigate social life, it is important to understand our basis for making them. -/- A central claim of the book is that factors that have nothing to do with knowledge may lead to systematic mistakes in everyday ascriptions of knowledge. These mistakes are explained (...) by an empirically informed account of how ordinary knowledge ascriptions are the product of cognitive heuristics that are associated with biases. In developing this account, Mikkel Gerken presents work in cognitive psychology and pragmatics, while also contributing to epistemology. For example, Gerken develops positive epistemic norms of action and assertion and moreover, critically assesses contextualism, knowledge-first methodology, pragmatic encroachment theories and more. Many of these approaches are argued to overestimate the epistemological significance of folk epistemology. In contrast, this volume develops an equilibristic methodology according to which intuitive judgments about knowledge cannot straightforwardly play a role as data for epistemological theorizing. Rather, critical epistemological theorizing is required to interpret empirical findings. Consequently, On Folk Epistemology helps to lay the foundation for an emerging sub-field that intersects philosophy and the cognitive sciences: The empirical study of folk epistemology. (shrink)

Despite their popularity, dual process accounts of human reasoning and decision-making have come under intense scrutiny in recent years. Cognitive scientists and philosophers alike have come to question the theoretical foundations of the ‘standard view’ of dual process theory and have challenged the validity and relevance of evidence in support of it. Moreover, attempts to modify and refine dual process theory in light of these challenges have generated additional concerns about its applicability and refutability as a scientific theory. With (...) these concerns in mind, this paper provides a critical review of dual process theory in economics, focusing on its role as a psychological framework for decision modeling in behavioral economics and neuroeconomics. I argue that the influx of criticisms against dual process theory challenge the descriptive accuracy of dualistic decision models in economics. In fact, the case can be made that the popularity of dual process theory in economics has less to do with the empirical success of dualistic decision models, and more to do with the convenience that the dual process narrative provides economists looking to explain-away decision anomalies. This leaves behavioral economists and neuroeconomists with something of a dilemma: either they stick to their purported ambitions to give a realistic description of human decision-making and give up the narrative, or they revise and restate their scientific ambitions. (shrink)

This paper examines the strengths and weaknesses of one of science's most pervasive and flexible metaprinciples;optimalityis used to explain utility maximization in economics, least effort principles in physics, entropy in chemistry, and survival of the fittest in biology. Fermat's principle of least time involves both teleological and causal considerations, two distinct modes of explanation resting on poorly understood psychological primitives. The rationality heuristic in economics provides an example from social science of the potential biases arising from the extreme (...) flexibility of optimality considerations, including selective search for confirming vidence, ex post rationalization, and the confusion of prediction with explanation. Commentators are asked to reflect on the extent to which optimality is an organizing principle of nature, a set of relatively unconnected techniques of science, a normative principle for rational choice and social organization, a metaphysical way of looking at the world, or something else still. (shrink)

Herbert Simon's renowned theory of bounded rationality is principally interested in cognitive constraints and environmental factors and influences which prevent people from thinking or behaving according to formal rationality. Simon's theory has been expanded in numerous directions and taken up by various disciplines with an interest in how humans think and behave. This includes philosophy, psychology, neurocognitive sciences, economics, political science, sociology, management, and organization studies. The Routledge Handbook of Bounded Rationality draws together an international team of leading (...) experts to survey the recent literature and the latest developments in these related fields. The chapters feature entries on key behavioural phenomena, including reasoning, judgement, decision making, uncertainty, risk, heuristics and biases, and fast and frugal heuristics. The text also examines current ideas such as fast and slow thinking, nudge, ecological rationality, evolutionary psychology, embodied cognition, and neurophilosophy. Overall, the volume serves to provide the most complete state-of-the-art collection on bounded rationality available. This book is essential reading for students and scholars of economics, psychology, neurocognitive sciences, political sciences, and philosophy. (shrink)

Stuart Rachels and Larry Temkin have offered a purported counter-example to the acyclicity of the relationship 'all things considered better than'. This example invokes our intuitive preferences over pairs of alternatives involving a single person's painful experiences of varying intensity and duration. These preferences, Rachels and Temkin claim, are confidently held, entirely reasonable, and cyclical. They conclude that we should drop acyclicity as a requirement of rationality. I argue that, together with the findings of recent research on the way people (...) evaluate episodes of pain, the use of a heuristic known as similarity-based decision-making explains why our intuitive preferences may violate acyclicity in this example. I argue that this explanation should lead us to regard these preferences with suspicion, because it indicates that they may be the result of one or more biases. I conclude that Rachels' and Temkin's example does not provide sufficient grounds for rejecting acyclicity. (shrink)

We argue that psychological research can enhance the identification of reasoning errors and the development of an appropriate pedagogy to instruct people in how to avoid these errors. In this paper we identify some of the findings of psychologists that help explain some common fallacies, give examples of fallacies identified in the research that have not been typically identified in philosophy, and explore ways in which this research can enhance critical thinking instruction.

The notion of “bounded rationality” was introduced by Simon as an appropriate framework for explaining how agents reason and make decisions in accordance with their computational limitations and the characteristics of the environments in which they exist (seen metaphorically as two complementary scissor blades).We elaborate on how bounded rationality is usually conceived in psychology and on its relationship with logic. We focus on the relationship between heuristics and some non-monotonic logical systems. These two categories of cognitive tools share fundamental (...) features. As a step further, we show that in some cases heuristics themselves can be formalized from this logic perspective. We have therefore two main aims: on the one hand, to demonstrate the relationship between the bounded rationality programme and logic, understood in a broad sense; on the other hand, to provide logical tools of analysis of already known heuristics. This may lead to results such as the characterization of fast and frugal binary trees in terms of their associated logic program here provided. (shrink)

Psychologists have a long tradition of studying human behavior, strengths and weaknesses, biases and limitations. Economists have constructed normative frameworks that capture the most important elements of human decision-making and developed powerful tools to determine individual and strategic choices in a variety of situations. Only recently have their strengths been combined and economic models enriched with key ingredients found in psychological studies.This volume covers four of the most important themes in this interdisciplinary field: feelings, inconsistencies, limitations and biases. Each chapter (...) contributes to a more comprehensive and accurate modelling and description of human behavior. Its four parts cover: the origins, formation, and evolution of beliefs; consistency, commitment, and intertemporal separability of dynamic choices; attention, preference formation, and risk evaluation in limited cognition; and affective behaviour, specifically the role of emotions in decision making. (shrink)

Psychologists have a long tradition of studying human behavior, strengths and weaknesses, biases and limitations. Economists have constructed normative frameworks that capture the most important elements of human decision-making and developed powerful tools to determine individual and strategic choices in a variety of situations. Only recently have their strengths been combined and economic models enriched with key ingredients found in psychological studies.This volume covers four of the most important themes in this interdisciplinary field: feelings, inconsistencies, limitations and biases. Each chapter (...) contributes to a more comprehensive and accurate modelling and description of human behavior. Its four parts cover: the origins, formation, and evolution of beliefs; consistency, commitment, and intertemporal separability of dynamic choices; attention, preference formation, and risk evaluation in limited cognition; and affective behaviour, specifically the role of emotions in decision making. (shrink)

Representing moral choice as a function of rational choice is carried out by formalizing moral evaluation into a functional mechanism called "Moral Choice Function" whose domain is information on a state of affairs and range is a moral judgment, and upon which formal and substantive requirements are imposed. The notions such as impartiality, universalizability, proportionality, and informational invariance are employed for the issue of how to solve conflict of values faced by an individual as well as (...) collective moral agent. By utilizing the structural affinity with post-Arrovian social choice theory, it is shown that inter-attribute commensurability is indispensable for any serious moral agent who wants to solve conflict of values through pluralistic maximizing. It is also shown that once the morally relevant attributes are identified, formal requirements are powerful enough to qualify the function to behave in a certain way such that the formulas for pluralistic maximizing vary with the modes of inter-attribute commensurability. It is also shown how it is still possible to manage conflict of values rationally without value commensurability by interpreting John Rawls's theory of justice as neo-Kantian in dealing with conflicting desiderata from Kantian deontology and utilitarian consequentialism. The metaethical tenets for the project are also argued for such that it is neutral about the ontological status of morality; but it is anti-Humean with its supervenience thesis, anti-Moorean with its reducibility thesis, and anti-naturalist with its syntheticity thesis. It is also argued that behind the project there lies a fundamental metaphysical conception of an entity as a bundle of properties conjoined with epistemic foundationalism, which is evidenced not only in moral evaluation but also in other kinds of cognitive activity. (shrink)

Mark Alfano claims that the heuristics and biases literature supports inferential cognitive situationism, i.e., the view that most of our inferential beliefs are arrived at and retained by means of unreliable heuristics rather than intellectual virtues. If true, this would present virtue reliabilists with an unpleasant choice: they can either accept inferential skepticism, or modify or abandon reliabilism. Alfano thinks that the latter course of action is most plausible, and several reliabilists seem to agree. I argue that this (...) is not the case. If situationism is true, then inferential non-skepticism is no more plausible than reliabilism. But inferential cognitive situationism is false. The heuristic-based inferences that facilitate successful perception and communication have proven remarkably accurate, and even the psychological research on inductive reasoning does not support Alfano’s situationism. More generally, negative assessments of human reasoning tend to ignore the fact that the research on cognitive biases focuses primarily on the performance of individuals in isolation. Several studies suggest that we reason much more effectively when in critical dialogue with others, which highlights the fact that our epistemic performance depends not only on the inner workings of our cognitive processes, but on the environments in which they operate. (shrink)

Psychologists and economists often ask similar questions about human behaviour. This volume brings together contributions from leaders in both disciplines.The editorial introduction discusses methodological differences between the two which have until now limited the development of mutually beneficial lines of research. Psychologists have objected to what they see as an excessive formalism in economic modelling and an unrealistic degree of sophistication in the behaviour of individuals, while economists criticize the absence of a general psychological framework into which most results can (...) be fitted and the lack of welfare implications in their theories. The editors encourage scholars to exploit the strengths of each discipline - the ability of psychologists to understand the feelings and motivation of individuals; and the experience of economists to develop normative frameworks.The editors then highlight the links between the contributions by grouping them according to central themes in the study of rationality and well-being:1. The causes and consequences of 'irrational behaviour';2. The role of anticipatory feelings and imperfect self-knowledge on decision-making; 3. The way in which memory of past events and cost of thinking affect current decisions;4. The interaction between anticipated and remembered utility and its effects on the welfare of individuals; 5. Experimental practice on how to perform controlled experiments to test hypotheses.This exciting volume provides an excellent point of entry for anyone interested in the interface between economics and psychology. (shrink)

The present study describes the mechanism of need regulation, which accompanies the so-called “biased” decisions. We hypothesized an unconscious urge for psychological need satisfaction as the trigger for cognitive biases. In an experimental study (N = 106), participants had the opportunity to win money in a functionality test. In the test, they could either use the solution they had developed (sunk cost) or an alternative solution that offered a higher probability of winning. The selection of the sunk-cost option was (...) the most chosen option, supporting the hypothesis of this study. The reason behind the majority of participants choosing the sunk-cost option seemed to be the satisfaction of psychological needs, despite a reduced chance of winning money. An intervention, which aimed at triggering self-reflection, had no impact on the decision. The findings of this study contribute to the discussion on the reasons for cognitive biases and their formation in the human mind. Moreover, it discusses the application of the label “irrational” for biased decisions and proposes reasons for instrumental rationality, which exist at an unconscious, need-regulative level. (shrink)

The increasingly wide spread use of RCM, rational choice modeling, and RCT, rational choice theory, in disciplines like economics, law, ethics, psychology, sociology, political science, management facilitates interdisciplinary exchange. This is a great achievement. Yet it nurtures the hope that a unified account of rational active choice making might arise from ‘reason’ in terms of intuitively appealing axioms. Such ‘rationalist’ characterizations of rational choice neglect real human practices and empirical accounts of (...) those practices. This is theoretically misleading and practically dangerous. Searching for a wide reflective equilibrium, WRE, on RCT in evidence-oriented ways can explicate ‘rational’ without rationalism. (shrink)

Philosophical attention to animals can be found in a wide range of texts throughout the history of philosophy, including discussions of animal classification in Aristotle and Ibn Bâjja, of animal rationality in Porphyry, Chrysippus, Aquinas and Kant, of mental continuity and the nature of the mental in Dharmakīrti, Telesio, Conway, Descartes, Cavendish, and Voltaire, of animal self-consciousness in Ibn Sina, of understanding what others think and feel in Zhuangzi, of animal emotion in Śāntarakṣita and Bentham, and of human cultural uniqueness (...) in Xunzi. In recent years, there has been increased attention to animal minds in philosophical discussions across many areas of metaphysics, epistemology, and value theory. Given that nonhuman animals share some biological and psychological features with humans, and that we share community, land, and other resources, consideration of nonhuman animals has much to contribute to our philosophical activities. -/- Contemporary philosophy of animal minds often also engages with the sciences of animal cognition and behavior. The science of comparative cognition is a thriving area of research, complementing the philosophical study in two ways. For one, philosophers of animal cognition can use claims resulting from animal cognition studies as premises in philosophical discussions. For example, Jacob Beck (2012) relies on pigeons’ abilities to compare quantities to argue for nonconceptual content; Sidney Carls-Diamante (forthcoming) appeals to octopus behavior and physiology to defend embodied cognition; Richard Moore (2016a) refers to ape gestural communication to rethink the requirements for intentional communication; Andrew Barron and Colin Klein (2016) appeal to insect cognition research to defend new theories of consciousness; Sarah Vincent, Rebecca Ring, and Kristin Andrews (2019) cite dolphins’ social practices to argue for the existence of norms that do not require metacognition. -/- In addition, philosophers of animal cognition can examine the epistemology and methods used to justify the claims that arise from the science. Research into animal cognition has resulted in surprising claims about animal capacities, such as sociality in garter snakes (Skinner & Miller 2020), tool-use in ants (Maák et al. 2017), mirror self-recognition in fish (Kohda et al. 2019), empathy in rats (Bartal et al. 2011), social learning in fruit flies (Danchin et al. 2018), episodic memory in dogs (Fugazza et al. 2020), addition and subtraction in bees (Howard et al. 2019). How should we evaluate such claims? -/- Some philosophers have argued that animal cognition research is held to a higher standard than human cognition research, and that scientists working with animals are sometimes asked to solve skeptical problems (Halina 2015). Others have challenged scientific assumptions about the relationship between brain size and intelligence, as well as biases against invertebrates (Mikhalevich & Powell 2020). -/- Animal cognition research challenges philosophers to consider that many capacities and behaviors often assumed to require language, sophisticated technological capacities, or legal systems may in fact be had by other animals who lack these properties. In this way, animal cognition research often surprises us by showing that sophisticated-looking activity can be caused through rather simple mechanisms. -/- 1. What is Animal Cognition? 2. Philosophical Assumptions in the Study of Animal Cognition 2.1 Theory-ladenness 2.2 Value-ladenness 2.3 Objectivity 2.4 Simplicity 2.5 Summary 3. Animal Cognition Applied to Philosophy 3.1 The problem of other minds 3.2 The mind-body problem 3.3 Consciousness 3.4 Thought 3.5 Communication 3.6 Social understanding 3.7 The influence of animal cognition on value theory 3.7.1 Ethics 3.7.2 Political theory 3.8 Summary Bibliography Academic Tools Other Internet Resources Related Entries. (shrink)

The aim of this study is to justify the belief that there are biological normative mechanisms that fulfill non-trivial causal roles in the explanations (as formulated by researchers) of actions and behaviors present in specific systems. One example of such mechanisms is the predictive mechanisms described and explained by predictive processing (hereinafter PP), which (1) guide actions and (2) shape causal transitions between states that have specific content and fulfillment conditions (e.g. mental states). Therefore, I am guided by a specific (...) theoretical goal associated with the need to indicate those conditions that should be met by the non-trivial theory of normative mechanisms and the specific models proposed by PP supporters. In this work, I use classical philosophical methods, such as conceptual analysis and critical reflection. I also analyze selected studies in the field of cognitive science, cognitive psychology, neurology, information theory and biology in terms of the methodology, argumentation and language used, in accordance with their theoretical importance for the issues discussed in this study. In this sense, the research presented here is interdisciplinary. My research framework is informed by the mechanistic model of explanation, which defines the necessary and sufficient conditions for explaining a given phenomenon. The research methods I chose are therefore related to the problems that I intend to solve. In the introductory chapter, “The concept of predictive processing”, I discuss the nature of PP as well as its main assumptions and theses. I also highlight the key concepts and distinctions for this research framework. Many authors argue that PP is a contemporary version of Kantianism and is exposed to objections similar to those made against the approach of Immanuel Kant. I discuss this thesis and show that it is only in a very general sense that the PP framework is neo-Kantian. Here we are not dealing with transcendental deduction nor with the application of transcendental arguments. I argue that PP is based on reverse engineering and abduction inferences. In the second part of this chapter, I respond to the objection formulated by Dan Zahavi, who directly accuses this research framework of anti-realistic consequences. I demonstrate that the position of internalism, present in the so-called conservative PP, does not imply anti-realism, and that, due to the explanatory role played in it by structural representations directed at real patterns, it is justified to claim that PP is realistic. In this way, I show that PP is a non-trivial research framework, having its subject, specific methods and its own epistemic status. Finally, I discuss positions classified as the socalled radical PP. In the chapter “Predictive processing as a Bayesian explanatory model” I justify the thesis according to which PP offers Bayesian modeling. Many researchers claim that the brain is an implemented statistical probabilistic network that is an approximation of the Bayesian 7 rule. In practice, this means that all cognitive processes are to apply Bayes' rule and can be described in terms of probability distributions. Such a solution arouses objections among many researchers and is the subject of wide criticism. The purpose of this chapter is to justify the thesis that Bayesian PP is a non-trivial research framework. For this purpose, I argue that it explains certain phenomena not only at the computational level described by David Marr, but also at the level of algorithms and implementation. Later in this chapter I demonstrate that PP is normative modeling. Proponents of the use of Bayesian models in psychology or decision theory argue that they are normative because they allow the formulation of formal rules of action that show what needs to be done to make a given action optimal. Critics of this approach emphasize that such thinking about the normativity of Bayesian modeling is unjustified and that science should shift from prescriptive to descriptive positions. In a polemic with Shira Elqayam and Jonathan Evans (2011), I show that the division they propose into prescriptivism and Bayesian descriptivism is apparent, because, as I argue, there are two forms of prescriptivism, i.e. the weak and the strong. I argue that the weak version is epistemic and can lead to anti-realism, while the strong version is ontic and allows one to justify realism in relation to Bayesian models. I argue that a weak version of prescriptivism is valid for PP. It allows us to adopt anti-realism in relation to PP. In practice, this means that you can explain phenomena using Bayes' rule. This does not, however, imply that they are Bayesian in nature. However, the full justification of realism in relation to the Bayesian PP presupposes the adoption of strong prescriptivism. This position assumes that phenomena are explained by Bayesian rule because they are Bayesian as such. If they are Bayesian in nature, then they should be explained using Bayesian modeling. This thesis will be substantiated in the chapters “Normative functions and mechanisms in the context of predictive processing” and “Normative mechanisms and actions in predictive processing”. In the chapter “The Free Energy Principle in predictive processing”, I discuss the Free Energy Principle (hereinafter FEP) formulated by Karl Friston and some of its implications. According to this principle, all biological systems (defined in terms of Markov blankets) minimize the free energy of their internal states in order to maintain homeostasis. Some researchers believe that PP is a special case of applying this principle to cognition, and that predictive mechanisms are homeostatic mechanisms that minimize free energy. The discussion of FEP is important due to the fact that some authors consider it to be important for explanatory purposes and normative. If this is the case, then FEP turns out to be crucial in explaining normative predictive mechanisms and, in general, any normative biological mechanisms. To define the explanatory possibilities of this principle, I refer to the discussion of its supporters on the issue they define as the problem of continuity and discontinuity between life and mind. A critical analysis of this discussion and the additional arguments I have formulated have allowed me to revise the explanatory ambitions of FEP. I also reject the belief that this principle is necessary to explain the nature of predictive mechanisms. I argue that the principle formulated and defended by Friston is an important research heuristic for PP analysis. 8 In the chapter “Normative functions and mechanisms in predictive processing”, I start my analyzes by formulating an answer to the question about the normative nature of homeostatic mechanisms. I demonstrate that predictive mechanisms are not homeostatic. I defend the view that a full explanation of normative mechanisms presupposes an explanation of normative functions. I discuss the most important proposals for understanding the normativity of a function, both from a systemic and teleosemantic perspective. I conclude that the non-trivial concept of a function must meet two requirements which I define as explanatory and normative. I show that none of the theories I have invoked satisfactorily meets both of these requirements. Instead, I propose a model of normativity based on Bickhard's account, but supplemented by a mechanistic perspective. I argue that a function is normative when: (1) it allows one to explain the dysfunction of a given mechanism; (2) it contributes to the maintenance of the organism's stability by shaping and limiting possible relations, processes and behaviors of a given system; and when (3) (according to the representational and predictive functions) it enables explaining the attribution of logical values of certain representations / predictions. In such an approach, a mechanism is normative when it performs certain normative functions and when it is constitutive for a specific action or behavior, despite the fact that for some reason it cannot realize it either currently or in the long-term. Such an understanding of the normativity of mechanisms presupposes the acceptance of the epistemic hypothesis. I argue that this hypothesis is not cognitively satisfactory, and therefore the ontic hypothesis should be justified, which is directly related to adopting the position of ontic prescriptivism. For this reason, referring to the mechanistic theory of scientific explanations, I formulate an ontical interpretation of the concept of a normative mechanism. According to this approach, a mechanism or a function is normative when they perform such and such causal roles in explaining certain actions and behaviors. With regard to the normative properties of predictive mechanisms and functions, this means that they are the causes of specific actions an organism carries out in the environment. In this way, I justify the necessity of accepting the ontic hypothesis and rejecting the epistemic hypothesis. The fifth chapter, “Normative mechanisms and actions in predictive processing”, is devoted to the dark room problem and the related exploration-exploitation trade-off. A dark room is the state that an agent could be in if it minimized the sum of all potential prediction errors. I demonstrate that, in accordance with the basic assumption of PP about the need for continuous and long-term minimization of prediction errors, such a state should be desirable for the agent. Is it really so? Many authors believe it is not. I argue that the test of the value of PP is the possibility of a non-trivial solution of this problem, which can be reduced to the choice between active and uncertainty-increasing exploration and safe and easily predictable exploitation. I show that the solution proposed by PP supporters present in the literature does not enable a fully satisfactory explanation of this dilemma. Then I defend the position according to which the full explanation of the normative mechanisms, and, subsequently, the solution to the dilemma of exploration and exploitation, involves reference to the existence of constraints present in the environment. The constraints 9 include elements of the environment that make a given mechanism not only causal but also normative. They are therefore key to explaining the predictive mechanisms. They do not only play the role of the context in which the mechanism is implemented, but, above all, are its constitutive component. I argue that the full explanation of the role of constraints in normative predictive mechanisms presupposes the integration of individual models of specific cognitive phenomena, because only the mechanistic integration of PP with other models allows for a non-trivial explanation of the nature of normative predictive mechanisms that would have a strong explanatory value. The explanatory monism present in many approaches to PP makes it impossible to solve the problem of the dark room. Later in this chapter, I argue that the Bayesian PP is normative not because it enables the formulation of such and such rules of action, but because the predictive mechanisms themselves are normative. They are normative because they condition the choice of such and such actions by agents. In this way, I justify the hypothesis that normative mechanisms make it possible to explain the phenomenon of agent motivation, which is crucial for solving the dark room problem. In the last part of the chapter, I formulate the hypothesis of distributed normativity, which assumes that the normative nature of certain mechanisms, functions or objects is determined by the relations into which these mechanisms, functions or objects enter. This means that what is normative (in the primary sense) is the relational structure that constitutes the normativity of specific items included in it. I suggest that this hypothesis opens up many areas of research and makes it possible to rethink many problems. In the “Conclusion”, I summarize the results of my research and indicate further research perspectives. (shrink)

Based on a rather simple thesis that we can learn from our mistakes, Karl Popper developed a falsificationist epistemology in which knowledge grows through falsifying, or criticizing, our theories. According to him, knowledge, especially scientific knowledge, progresses through conjectures that are controlled by criticism, or attempted refutations . As he puts it, ‘Criticism of our conjectures is of decisive importance: by bringing out our mistakes it makes us understand the difficulties of the problem which we are trying to solve. This (...) is how we become better acquainted with our problem, and able to propose more mature solutions: the very refutation of a theory ... is always a step forward that takes us nearer to the truth. And this is how we can learn from our mistakes’ . Since criticism plays such a crucial role in Popper's falsificationist methodology, it seems natural to envisage his heuristic as a helpful resource for developing critical thinking. However, there is much controversy in the psychological literature over the feasibility and utility of his falsificationism as a heuristic. In this paper, I first consider Popper's falsificationism within the framework of his critical rationalism, elucidating three core and interrelated concepts, viz. fallibilism, criticism, and verisimilitude. Then I argue that the implementation of Popper's falsificationism means exposing to criticism various philosophical presuppositions that work against criticism, such as essentialism, instrumentalism, and conventionalism; it also means combating what seems a common tendency of humans to be biased towards confirmation. I examine the confirmation bias, to which Popper did not give much attention: its pervasiveness and various guises, some theoretical explanations for it, and the role of teachers in undermining its strength and spread. Finally, I consider the question whether students can and should be taught to use disconfirmatory strategies for solving problems. (shrink)

Based on a rather simple thesis that we can learn from our mistakes, Karl Popper developed a falsificationist epistemology in which knowledge grows through falsifying, or criticizing, our theories. According to him, knowledge, especially scientific knowledge, progresses through conjectures (i.e. tentative solutions to problems) that are controlled by criticism, or attempted refutations (including severely critical tests). As he puts it, ‘Criticism of our conjectures is of decisive importance: by bringing out our mistakes it makes us understand the difficulties of (...) the problem which we are trying to solve. This is how we become better acquainted with our problem, and able to propose more mature solutions: the very refutation of a theory... is always a step forward that takes us nearer to the truth. And this is how we can learn from our mistakes’ (1989, p. vii). Since criticism plays such a crucial role in Popper's falsificationist methodology, it seems natural to envisage his heuristic as a helpful resource for developing critical thinking. However, there is much controversy in the psychological literature over the feasibility and utility of his falsificationism as a heuristic. In this paper, I first consider Popper's falsificationism within the framework of his critical rationalism, elucidating three core and interrelated concepts, viz. fallibilism, criticism, and verisimilitude. Then I argue that the implementation of Popper's falsificationism means exposing to criticism various philosophical presuppositions that work against criticism, such as essentialism, instrumentalism, and conventionalism; it also means combating what seems a common tendency of humans to be biased towards confirmation. I examine the confirmation bias, to which Popper did not give much attention: its pervasiveness and various guises, some theoretical explanations for it, and the role of teachers in undermining its strength and spread. Finally, I consider the question whether students can and should be taught to use disconfirmatory strategies for solving problems. (shrink)

The purpose of this paper is to examine the normative interpretation of the fast-and-frugal research program and in particular to contrast it with the normative reading of rational choice theory and behavioral economics. The ecological rationality of fast-and-frugal heuristics is admittedly a form of normative naturalism – it derives what agents “ought” to do from that which “is” ecologically rational – and the paper will examine how this differs from the normative rationality associated with (...) class='Hi'>rational choice theory. I will also attempt to assess the relative adequacy of normative ecological rationality. (shrink)

Drawing on current debates at the frontiers of economics, psychology, and political philosophy, this book explores the challenges that arise for liberal democracies from a confrontation between modern technologies and the bounds of human rationality. With the ongoing transition of democracy's underlying information economy into the digital space, threats of disinformation and runaway political polarization have been gaining prominence. Employing the economic approach informed by behavioral sciences' findings, the book's chief concern is how these challenges can be addressed (...) while preserving a commitment to democratic values and maximizing the epistemic benefits of democratic decision-making. The book has two key strands: it provides a systematic argument for building a behaviorally informed theory of democracy; and explores how scientific knowledge on quirks and bounds of human rationality can inform the design of resilient democratic institutions. Drawing these together, the book explores the centrality of the rationality assumption in the methodological debates surrounding behavioral sciences as exemplified by the dispute between neoclassical and behavioral economics; the role of rationality in democratic social choice; behaviorally informed paternalism as a response to the challenge of irrationality; and non-paternalistic avenues to increase the resilience of the democratic institutions towards political irrationality This book is invaluable reading for anyone interested in behavioral economics and sciences, political philosophy and the future of democracy. (shrink)

In today’s America the persistence of crushing poverty in the midst of staggering affluence no longer incites the righteous jeremiads it once did. Resigned acceptance of this paradox is fueled by a sense that poverty lies beyond the moral and technical scope of government remediation. The failure of experts to reach agreement on the causes of poverty merely exacerbates our despair. Are the causes internal to the poor – reflecting their more or less voluntary choices? Or do they emanate from (...) structures beyond their control? If both of these explanations are true, poverty experts will need to shift their focus to a hitherto under-theorized concept: coercion. I defend this claim by appealing to distinct areas of philosophical inquiry: social epistemology and moral theory. Poverty knowledge is directly related to both of these inquiries. The aim of poverty knowledge is clearly moral: to reduce suffering and to empower the weak. While the former aim is grounded in utilitarian thinking, the latter aim is grounded in the social contractarian insight that poverty is unjustly coercive, imposing excessive limits on the opportunities and choices of the poor that render them vulnerable to domination by others. Equally obvious is the social nature of poverty knowledge. All knowledge depends on the reliable testimony of others. Poverty knowledge not only ostensibly offers us the most reliable, scientific beliefs about the causes and effects of poverty, thereby determining how we morally judge the poor and their poverty, but it reciprocally bases its understanding of poverty on what the poor themselves have to say about it. What unites both social epistemology and moral theory – at least the social contract variants I will be examining here – is concern about the limits and possibilities of rational choice. As poverty knowledge came of age in the fifties and sixties, it absorbed the language of rational choice prevalent in economics, especially the Keynesian economics whose moral underpinnings can be found in Rawlsian social contract theory. Echoing a different economic theory supported by a different, more libertarian, brand of social contract theory, poverty expertise in the eighties continued to use an abstract model of rational choice. I submit that, in both early and later epochs of poverty expertise, reliance on rational choice reasoning prevented poverty experts from appreciating the coercive impact of poverty on the poor. Social epistemology explains this failure by demonstrating the poverty of rational choice thinking and its mistaken reliance on inflated commonsense expectations about the capacity of individuals to calculate their long-term interests, free from the distortions of social bias. Social epistemology not only exhibits the dangers of not relying on expert testimony, but it also exhibits the dangers of relying on an unreliable source of expert testimony that has removed itself from its human subject matter. In order for poverty experts to become more reliable educators about poverty’s coercive impact on the poor they must return to their discipline’s social epistemological roots. Only a more descriptive and explanatory sociology can narrate a comprehensive story about how the lived experience of poverty relates to the larger social system. The social contractarian model best suited to underwriting this kind of poverty knowledge, I submit, is the discourse theoretic model that has been championed by Jürgen Habermas. When applied as a pedagogical method of dialog and not as a social contractarian model of rational normative consent, discourse theory highlights the unique epistemological advantages of empathetic understanding that are so essential to dispelling stereotypes about the poor. Dispelling these stereotypes is the first step toward respecting the poor as free agents who are nonetheless forced to make suboptimal choices. My defense of these claims proceeds as follows: Part One argues that poverty expertise rightly deserves the opprobrium critics have heaped on it. The charge – leveled by progressives and conservatives alike - that such expertise is ideological is true to the extent that poverty knowledge has all-too-easily accommodated the political aims of the agency that has funded it: the federal government. The shift from the war on poverty to the war on the poor – and the resulting shift from blaming poverty on economic structures to blaming it on the culture of poverty – would not have been possible without an increased emphasis on data gathering aimed at measuring poverty rather than describing it. Part Two assesses the consequences of turning away from qualitative research to statistical analysis: the coercive nature of poverty becomes invisible beneath the surface of aggregate individual choices. The failure to grasp how voluntary choices, ostensibly based on rational, self-interested calculations, can be coerced by social structures - and thereby lead to sub-optimizing behavior – invites the conclusion that the poor have only themselves to blame for their misery. Part Three suggests that this pathologization of the poor directly controverts the major aim of poverty research: to empower the poor as free and equal parties to the social contract. I argue that the different varieties of social contract theory that have justified poverty expertise over the last forty years – the welfarist model pioneered by Rawls and the market-based model defended by Nozick – embrace the same rational choice models favored by poverty experts and so conspire with the latter in neglecting important dimensions of poverty-related coercion. While the welfarist model conceals the coercive nature of bureaucratically administered entitlement programs and top-down urban renewal policies, the market-based model conceals the coercive nature of economic class structures. The discourse-theoretic alternative proposed by Habermas endorses a populist, democratic response to the overly abstract rational choice assumptions embedded in these other models. Despite this advance over its counterparts, the chief advantage of discourse theory for poverty knowledge, I submit, resides less in its proposed procedure of rational collective choice than in its heuristic as a dialogical method of social learning. I demonstrate this claim in Part Four, where I turn to the social epistemological insights of Allen Buchanan. Social epistemology offers a much needed corrective to theories of knowledge that rely on the reasoning capacities of isolated individuals. By stressing the connection between moral response and social belief, on one hand, and the dependence of social belief on epistemic authorities, on the other, social epistemologists suggest ways in which we can learn to distinguish reliable from unreliable authorities and become aware of our own error-prone cognitive proclivities. Their insights need to be supplemented by moral epistemologists who stress the affective dimension of knowledge, above all, the role that empathy plays in understanding the plight of others. Drawing from victim narratives, Diana Meyers shows that switching between first-person experiences of one's own and third-person reconstructions of others' experiences is essential to appreciating the gravity of human rights violations and the seriousness of human rights claims. It goes without saying that such empathy is just as essential to understanding the plight of the poor. Meyers mainly has in mind empathetic understanding that has been facilitated by third-person observation and literary encounter, but the importance of visceral and corporeal representation suggests that face-to-face dialog may sometimes be a more effective way to facilitate empathetic understanding. (shrink)

The descriptive viewpoint in rational choice has generated an important Standard Rational Choice Theory revision. This viewpoint has meant the introduction of relevant psychological considerations that Rational Choice Theory tied to the neoclassical economics is unable to heed In this paper I suggest a way to expand the descriptive viewpoint by theorizing how some factors, coming from the social and cultural environment, operate within rational choice. That troublesome issue concerning the overall (...) validity of economic laws is also a question here; specifically, if these descriptive proposals expand the explanation of the disturbing causes of economic laws, or if they actually call into question their fundamental principles, encouraging consideration of some economic issues in a quite new, different manner. (shrink)

Decision Theory and Rationality offers a challenging new interpretation of a key theoretical tool in the human and social sciences. This accessible book argues, contrary to orthodoxy in politics, economics, and management science, that decision theory cannot provide a theory of rationality.

This book offers a rigorous, concise, and nontechnical introduction to some of the fundamental insights of rational choice theory. It draws on formal theories of microeconomics, decision making, games, and social choice, and on ideas developed in philosophy, psychology, and sociology. Itzhak Gilboa argues that economic theory has provided a set of powerful models and broad insights that have changed the way we think about everyday life. He focuses on basic insights of the rational choice (...) paradigm--the general conceptualization rather than a particular theory--that survive recent critiques of economic theory's various failures. Gilboa explains the main concepts in language accessible to the nonspecialist, offering a nonmathematical guide to some of the main ideas developed in economic theory in the second half of the twentieth century. Chapters cover feasibility and desirability, utility maximization, constrained optimization, expected utility, probability and statistics, aggregation of preferences, games and equilibria, free markets, and rationality and emotions. Online appendixes offer additional material, including a survey of relevant mathematical concepts. (shrink)

This paper provides an empirical defense of credit theories of knowing against Mark Alfano’s challenges to them based on his theses of inferential cognitive situationism and of epistemic situationism. In order to support the claim that credit theories can treat many cases of cognitive success through heuristic cognitive strategies as credit-conferring, the paper develops the compatibility between virtue epistemologies qua credit theories, and dual-process theories in cognitive psychology. It also a response to Lauren Olin and (...) John Doris’ “vicious minds” thesis, and their “tradeoff problem” for virtue theories. A genuine convergence between virtue epistemology and dual-process theory is called for, while acknowledging that this effort may demand new and more empirically well-informed projects on both sides of the division between Conservative virtue epistemology (including the credit theory of knowing) and Autonomous virtue epistemology (including projects for providing guidance to epistemic agents). (shrink)

This dissertation is a study of how methodological issues in psychology can have significant implications for philosophical accounts of interpretation, justification, and psychological explanation. In the first chapter, I analyze traditional philosophical accounts of interpretation with an eye to identifying the ways in which philosophers have used rationality as a methodological tool. I argue that these forms of methodological rationalism do not successfully cope with the challenge from the heuristics and biases research program which generally argues that human judgment is (...) irrational. In the second chapter, I trace cognitive psychology's disciplinary trend to study conditions that facilitate rational rather than irrational judgment. This trend suggests we should seek to make rational judgment an object of study rather than a default methodology for the process of studying psychological judgment. I argue that social and moral interests in promoting cognitive health motivate and justify the interest in discovering conditions that promote rational rather than irrational judgment. I call this normative account of applied cognitive psychology ecological rationalism. In the third chapter, I argue that psychology's disciplinary interest in creating valid questionnaires motivates discovering the conditions of successful communication. I discuss the methodological lessons that the Gricean turn in psychological research brings to questionnaire design: in particular, the Gricean turn imposes evidential requirements on psychological research about the conditions of successful versus unsuccessful communication for specific contexts and the conversational norms governing communication in experimental conditions. In the fourth chapter, I argue that some methodological critiques of the heuristics and biases research program have intimate connections to naturalized epistemology: in particular, the ways in which Gerd Gigerenzer thinks cognitive processes should be specified for the sake of explaining human judgment suggest that cognitive psychology and naturalized epistemology are disciplines with shared explanatory goals. I argue that both invoke cognitive processes to explain the psychological transformation of inputs to output-beliefs; and both seek to explain the epistemic status of output-beliefs by reference to the same cognitive process invoked to explain its production. To close, I make a few observations on how the shared explanatory goals between cognitive psychology and naturalized epistemology recasts traditional challenges facing reliabilism. (shrink)

Our target article identified normativism as the view that rationality should be evaluated against unconditional normative standards. We believe this to be entrenched in the psychological study of reasoning and decision making and argued that it is damaging to this empirical area of study, calling instead for a descriptivist psychology of reasoning and decision making. The views of 29 commentators (from philosophy and cognitive science as well as psychology) were mixed, including some staunch defences of normativism, but also a (...) number that were broadly supportive of our position, although critical of various details. In particular, many defended a position that we call which sees a role for normative evaluation within boundaries alongside more descriptive research goals. In this response, we clarify our use of the term and add discussion of defining both as descriptive and non-normative concepts. We consider the debate with reference to dual-process theory, the psychology of reasoning, and empirical research strategy in these fields. We also discuss cognitive variation by age, intelligence, and culture, and the issue of relative versus absolute definitions of norms. In conclusion, we hope at least to have raised consciousness about the important boundaries between norm and description in the psychology of thinking. (shrink)

This article assesses two major conceptual arguments against theories of choice.The first argument concerns the circularity of belief-desire psychology, on which decision theory is based. The second argument concerns the normativity arising from the concept of rationality. Each argument is evaluated against experimental practice in economics and psychology, and it is concluded that both arguments fail to establish their skeptical conclusion that there can be no science of intentional human actions.