A Difficulty for Economic Theory: Why Claiming the Weak Axiom is 'Weak' is Wrong

2016 ◽  
Author(s):  
Brendan MarkeyyTowler
Keyword(s):  
Economic Theory ◽  
Weak Axiom

Distinct Orbitofrontal Regions Encode Stimulus and Choice Valuation

2009 ◽  
Vol 21 (10) ◽  
pp. 1956-1966 ◽  
Author(s):  
William A. Cunningham ◽  
Amanda Kesek ◽  
Samantha M. Mowrer
Keyword(s):  
Decision Making ◽  
Economic Theory ◽  
Orbitofrontal Cortex ◽  
Revealed Preferences ◽  
Left Posterior ◽  
Important Processing ◽  
Objective Value ◽  
Adaptive Decision Making ◽  
Weak Axiom

The weak axiom of revealed preferences suggests that the value of an object can be understood through the simple examination of choices. Although this axiom has driven economic theory, the assumption of equation between value and choice is often violated. fMRI was used to decouple the processes associated with evaluating stimuli from evaluating one's actions. Whereas activity in left posterior areas of the orbitofrontal cortex (OFC) was associated with processing the objective value of stimuli, activity in medial anterior areas of the OFC was associated with accepting high value gambles and rejecting low value gambles; that is, making correct decisions. These data demonstrate that distinct areas of the OFC provide dissociated representations for use in adaptive decision-making and suggest an important processing distinction between the concepts of good/bad and right/wrong.

VALUING PROCESSES

2007 ◽  
Vol 23 (2) ◽  
pp. 205-235 ◽  
Author(s):  
MARTIN E. SANDBU
Keyword(s):  
Economic Theory ◽  
Revealed Preference ◽  
Instrumental Function ◽  
Instrumental Value ◽  
Preference Theory ◽  
Weak Axiom

Conventional economic theory assumes that people care only about ultimate outcomes and are indifferent to the decision and allocation processes by which outcomes are brought about. Building on Sen (1997), I relax this assumption, and investigate the formal and philosophical issues that arise. I extend the formal apparatus of preference theory to analyse how processes may enter preferences, and investigate whether traditional invariance requirements like the Weak Axiom of Revealed Preference are still satisfied in this new setting. I show that it is, provided certain conditions of separability hold, and I discuss the plausibility of these conditions. Further, I argue that processes are often valued in a mode that diverges from the conventional modes of instrumental and intrinsic/independent valuation. I introduce the notion of dependent non-instrumental valuation, and show how processes could depend on their instrumental function for their value – making their value dependent – and yet derive their value from something else – making it non-instrumental. Dependent non-instrumental value, I argue, can be explained by symbolic and evidential relations between processes and outcomes.

On Modern Scientific Assessment of the Economic Theory of Marx-Engels-Lenin (Ten Items for Reflection)

2004 ◽  
pp. 111-130 ◽  
Author(s):  
V. Kudrov
Keyword(s):  
Economic Theory ◽  
Surplus Value ◽  
Scientific Assessment ◽  
General Law

Substantive provisions of the Marx-Engels-Lenin economic theory in comparison with vital realities of XX century are critically considered in the article. Theories of surplus value, labor value, general law of capitalist accumulation, absolute and relative impoverishment of proletariat are examined. The author points to utopianism and inconsistency of Marx's theory and calls Russian economists for creation of new economic theory adequate to challenges of XXI century.

"Marketocentric" Economics Is Obsolete

2004 ◽  
pp. 36-49 ◽  
Author(s):  
A. Buzgalin ◽  
A. Kolganov
Keyword(s):  
Economic Theory ◽  
Middle Ages ◽  
Modern Science ◽  
Economic Systems ◽  
Main Mode ◽  
Post Market ◽  
Market Relations ◽  
Post Industrial ◽  
The 19Th Century ◽  
The Universe

The "marketocentric" economic theory is now dominating in modern science (similar to Ptolemeus geocentric model of the Universe in the Middle Ages). But market economy is only one of different types of economic systems which became the main mode of resources allocation and motivation only in the end of the 19th century. Authors point to the necessity of the analysis of both pre-market and post-market relations. Transition towards the post-industrial neoeconomy requires "Copernical revolution" in economic theory, rejection of marketocentric orientation, which has become now not only less fruitful, but also dogmatically dangerous, leading to the conservation and reproduction of "market fundamentalism".

Beyond Market: Institutions of Governance in the Complex World (Nobel Memorial Prize in Economics 2009 - Oliver Williamson and Elinor Ostrom)

2010 ◽  
pp. 82-98 ◽  
Author(s):  
Ya. Kuzminov ◽  
M. Yudkevich
Keyword(s):  
Economic Theory ◽  
Behavioral Economics ◽  
Nobel Prize ◽  
Organization Theory ◽  
Development Studies ◽  
Complex World ◽  
Market Institutions ◽  
Institutional Economic

The article surveys the main lines of research conducted by Oliver Williamson and Elinor Ostrom - 2009 Nobel Prize winners in economics. Williamsons and Ostroms contribution to understanding the nature of institutions and choice over institutional options are discussed. The role their work played in evolution of modern institutional economic theory is analyzed in detail, as well as interconnections between Williamsons and Ostroms ideas and the most recent research developments in organization theory, behavioral economics and development studies.

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