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Norms and Descriptions

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  • Niklas Vareman

    (Department of Philosophy, Lund University, S-222 22 Lund, Sweden)

Abstract

This article addresses the problem of identifying conditions according to which it is possible to distinguish between a descriptive theory and a normative theory. What makes a descriptive theory descriptive and a normative theory normative? The focus is on subjective expected utility theories where it seems open to debate whether the appropriate use is normative or descriptive. My discussion, which takes arguments by Isaac Levi and Hugh Mellor as points of departure, is mostly negative, showing that there are no obvious distinguishing features of theories qua theories. Rather, the theories can be used normatively or descriptively without making them theories of one kind or the other. I also point to situations in prescriptive decision analysis where one should be observant of in what way theories are used.

Suggested Citation

  • Niklas Vareman, 2008. "Norms and Descriptions," Decision Analysis, INFORMS, vol. 5(2), pages 88-99, June.
    • Handle: RePEc:inm:ordeca:v:5:y:2008:i:2:p:88-99
    DOI: 10.1287/deca.1080.0112
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    References listed on IDEAS

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    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Fishburn, Peter C. & LaValle, Irving H., 1998. "Subjective expected lexicographic utility with infinite state sets," Journal of Mathematical Economics, Elsevier, vol. 30(3), pages 323-346, October.
    5. Han Bleichrodt & Jose Luis Pinto & Peter P. Wakker, 2001. "Making Descriptive Use of Prospect Theory to Improve the Prescriptive Use of Expected Utility," Management Science, INFORMS, vol. 47(11), pages 1498-1514, November.
    6. Peter C. Fishburn & Irving H. LaValle, 1998. "Subjective expected lexicographic utility:Axioms and assessment," Annals of Operations Research, Springer, vol. 80(0), pages 183-206, January.
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    Cited by:

    1. L. Robin Keller & Kelly M. Kophazi, 2008. "From the Editors..," Decision Analysis, INFORMS, vol. 5(2), pages 57-59, June.

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