Using as examples Akerlof's 'market for ''lemons''' and Schelling's 'checkerboard' model of racial segregation, this paper asks how economists' abstract theoretical models can explain features of the real world. It argues that such models are not abstractions from, or simplifications of, the...

In this note, I comment on Julian Reiss's paper 'The explanation paradox'. I argue in support of two of the propositions that make up that paradox (that economic models are false, and that they are explanatory) but challenge the third proposition, that only true accounts can explain. I defend...

We investigate the methodology used in a significant genre of experimental economics, in which experiments are designed to test theoretical models by implementing them in the laboratory. Using two case studies, we argue that such an experiment is a test, not of what the model says about its...

The discovered preference hypothesis appears to insulate expected utility theory (EU) from disconfirming experimental evidence. It asserts that individuals have coherent underlying preferences, which experiments may not reveal unless subjects have adequate opportunities and incentives to...

Two roles of experiments in behavioural economics are distinguished - experiments as exhibits and experiments as tests of theories. An exhibit is an experimental design which reliably induces a surprising regularity, typically combined with an informal hypothesis about the underlying causal...