Document Type
Discussion Paper
Publication Date
9-1-2014
CFDP Number
1958
CFDP Update Date
2016-02-01
CFDP Pages
50
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.
Recommended Citation
Gilboa, Itzhak; Postlewaite, Andrew; Samuelson, Larry; and Schmeidler, David, "Economics: Between Prediction and Criticism" (2014). Cowles Foundation Discussion Papers. 2367.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2367