ECONOMICS: BETWEEN PREDICTION AND CRITICISM |
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| Authors: | Itzhak Gilboa Andrew Postlewaite Larry Samuelson David Schmeidler |
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| Institution: | 1. HEC, Paris‐Saclay, France;2. Tel‐Aviv University, Israel;3. University of Pennsylvania, U.S.A.;4. Yale University, U.S.A. |
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| 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 nontrivial 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. |
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