nep-hpe  New Economics Papers on History and Philosophy of Economics
─────────────────────────────┐
Issue of 2019‒10‒28
nine papers chosen by
Erik Thomson (University of Manitoba)
 http://ep.repec.org/pth72

[Selections by Humberto Barreto for SHOE list.]

1. Behavioral Economics versus Traditional Economics: Are They Very
    Different?
  Chang, Kuo-Ping
6. Survey on Recent Work in the History of Econometrics : A Witness Report
  M.J. Boumans
7. An Economic Approach To The Self : The Dual Agent
  Aïleen Lotz
8. The Econ in Econophysics
  Anwar Shaikh

────────────────────────────────────────────────────────────────────────────────

1. Behavioral Economics versus Traditional Economics: Are They Very
    Different?
  Chang, Kuo-Ping
 Behavioral economics, notably developed by Daniel Kahneman, Amos Tversky and
 Richard Thaler, has found consistent and pervasive anomalies in common
 people’s daily behaviors. This paper has employed the concepts in traditional
 economics (e.g., choice, relative price, and opportunity cost) to analyze the
 anomalies found in behavioral economics. The results show that quite a few
 anomalies, such as preference reversal, isolation effect and sunk cost
 fallacy, do not exist. This is not to say that people always make rational
 choices. The findings of the paper conclude, however, that common people may
 not be as irrational as behavioral economists have suggested (in some
 situations, common people may act more like a rational economist).
  JEL: D11 D9
  Keywords: Choice, sunk cost fallacy, relative price ratio (rate of return),
   prospect theory, endowment effect.
  Date: 2019–01–25
URL: http://d.repec.org/n?u=RePEc:pra:mprapa:96561&r=hpe

6. Survey on Recent Work in the History of Econometrics : A Witness Report
  M.J. Boumans
 This survey is written to show historians of economics what is happening in
 history of econometrics, and is the second survey I did with this aim. The
 first survey, published in 2011, concluded that interest in the history of
 econometrics has arisen primarily from within econometrics itself and that
 its histories have been written mainly by econometricians. After the
 publication of the first survey, history of econometrics remained mainly the
 interest of econometricians. More recently, however, one can observe an
 increasing interest in the history of econometrics among historians of
 economics and historians of science. It seems that if the subject of study is
 econometrics as a discipline it remains to be of interest only to the
 econometricians, but if the subject is the artefacts created by
 econometricians, such as econometric models, it caught the attention of
 historians of science.
  Keywords: history of econometrics, metaphors, scientific revolution,
   discipline, crediting, science practice
  Date: 2018
URL: http://d.repec.org/n?u=RePEc:use:tkiwps:1810&r=hpe

7. An Economic Approach To The Self : The Dual Agent
  Aïleen Lotz (Cerca Trova)
 This paper extends the notion of the rational agent in economics by
 acknowledging the role of the unconscious in the agent's decision-making
 process. It argues that the unconscious can be modelled by a rational agent
 with his own objective function and set of information. The combination of
 both the conscious and unconscious agents is called the dual agent. This dual
 agent presents rationally biased behaviors that may persist through
 aggregation and could be potentially measured. It also provides a theoretical
 approach to the emotionally-driven actions.
  Keywords: dual agent,conscious and
   unconscious,rationality,multi-rationality,emotions,choices and
   preferences,multi-agent model,consistency
  Date: 2019–10–13
URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02314663&r=hpe

8. The Econ in Econophysics
  Anwar Shaikh (Department of Economics, New School for Social Research)
 Modern authors have identified a variety of striking economic patterns, most
 importantly those involving the distribution of incomes and profit rates. In
 recent times, the econophysics literature has demonstrated that bottom
 incomes follow an exponential distribution, top incomes follow a Pareto,
 profit rates display a tent-shaped distribution. This paper is concerned with
 the theory underlying various explanations of these phenomena. Traditional
 econophysics relies on energy-conserving “particle collision” models in which
 simulation is often used to derive a stationary distribution. Those in the
 Jaynesian tradition rely on entropy maximization, subject to certain
 constraints, to infer the final distribution. This paper argues that economic
 phenomena should be derived as results of explicit economic processes. For
 instance, the entry and exit process motivated by supply decisions of firms
 underlies the drift-diffusion form of wage, interest and profit rates
 arbitrage. These processes give rise to stationary distributions that turn
 out to be also entropy maximizing. In arbitrage approach, entropy
 maximization is a result. In the Jaynesian approaches, entropy maximization
 is the means.
  Keywords: Economics, arbitrage, econophysics, income distribution, profit
   distribution, statistical mechanics, Jaynes
  Date: 2019–10
URL: http://d.repec.org/n?u=RePEc:new:wpaper:1913&r=hpe


────────────────────────────────────────────────────────────────────────────────
This nep-hpe issue is ©2019 by Erik Thomson. It is provided as is without any
express or implied warranty. It may be freely redistributed in whole or in
part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org.
For comments please write to the director of NEP, Marco Novarese at
<[log in to unmask]>. Put “NEP” in the subject, otherwise your mail may be
rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of
Massey University in New Zealand.