A theory of gravity is supposed to tell a story about how
physical objects are attracted to each other, by some agreed
measure of attraction, and to explain and predict observable
phenomena based on this story. So a theory of choice,
I take it, should tell a story about how choices are made,
by some agree measure of choice, and explain and predict
observable phenomena based on this story. The agreed
measure of choice for most economists appears to be observed
behavior.
Gravitational physics is a field where theories (pl.) of
gravity are pitted against each other to determine their
relative usefulness. We would not say "gravitataional
physics is the theory of gravity" for a few reasons. I'll
mention two. First, it is a field of study, not a theory.
Second, theories (plural) are studied in this field of
study, not "the" theory.
A given theory distinguishes itself from other theories by
ruling in and out various factual claims. A theory of
gravity that failed to rule out some imaginable, observable
(though possibly in a frequentist sense) behaviors of
physical bodies would be rightfully dismissed. It is not
a scientific theory. A theory of choice should similarly be
dismissed if it cannot rule out some imaginable, observable
human behaviors.
I understand Pat Gunning to insist on two claims. The
first, which he seems inclined to focus on, is a very weak
claim: that we often find it useful to interpret human
behavior as purposive. Nobody has disputed this, I think.
As I said earlier, this kind of folk psychology is pervasive
and does not distinguish economists from others except, as
Pat suggests, many economists are inclined to spend a lot of
time thinking about what might follow from this.
Of course we also find it useful to interpret animal
behavior as purposive, and even evolutionary biologists have
found teleological thinking to be provisionally useful. if
we find such teleological thinking useful, that is
justification enough for using it. Provisionally.
But as our profession has proved (and as the recent HES list
discussion highlights), NO behavior is ruled out by the
brute admonition to interpret behavior as purposive. For
example, in violation of the Stigler and Becker (1977)
admonition to economists, James will "explain" suicide
bombers by giving them special utility functions (real ones,
apparently!) to maximize. Thus even folk psychology, which
Pat proposed as the root of economics, gains usefulness only
when supplemented substantially with concrete content.
A "theory of choice" cannot simply be the assertion that
observed behavior is purposive. This brute assertion has no
empirical content and by itself does not even suggest any
models of behavior. That is why I and others on this list
have insisted that even that part of economics that focuses
on purposive behavior---let's call it "choice-theoretic"
economics---gets its content elsewhere.
The second, strong claim Pat (and others) have made is the
economics *is* the theory of choice. I previously raised
questions about what kind of claim this is, and others on
the list have done so as well. I suppose it is intended as
a demarcation criterion for the profession---a kind of "do
things my way or you're not an economist." I am not really
interested in demarcation criteria, but this one has serious
difficulties, as it is evident that many professional
economists are engaged in activities not meeting this
criterion for belonging to the profession. Perhaps an even
more powerful objection to any proposal that "economics is
the theory of choice" is that *identifying* a field of study
with a single theory is a suspect move at many levels.
Cheers,
Alan Isaac
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