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Economics: Between Prediction and Criticism

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Itzhak Gilboa
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Larry Samuelson
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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 non-trivial act of interpretation, it's roles in producing predictions and offering critiques vary in a substantial way. We offer a formal model i which these different roles can be captured.
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hal-01970753 , version 1 (06-01-2019)

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Itzhak Gilboa, Andrew Postlewaite, Larry Samuelson, David Schmeidler. Economics: Between Prediction and Criticism. 2016. ⟨hal-01970753⟩

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