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Economics: Between Prediction and Criticism, Second Version

Author

Listed:
  • Itzhak Gilboa

    (Department of Economics, HEC Paris-Barclay)

  • Andrew Postlewaite

    (Department of Economics, University of Pennsylvania)

  • Larry Samuelson

    (Department of Economics, Yale University)

  • David Schmeidler

    (Department of Economics, Tel Aviv University)

Abstract

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

Suggested Citation

  • Itzhak Gilboa & Andrew Postlewaite & Larry Samuelson & David Schmeidler, 2016. "Economics: Between Prediction and Criticism, Second Version," PIER Working Paper Archive 16-004, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 30 Oct 2016.
    • Handle: RePEc:pen:papers:16-004
    as

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    References listed on IDEAS

    as
    1. Uskali Maki, 2005. "Models are experiments, experiments are models," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(2), pages 303-315.
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    6. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521415019, December.
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