The model of Homo economicus has often been criticized as unrealistic. In particular, it has been found lacking for allegedly assuming that people are selfish, an assumption which is contradicted by both introspection and empirical evidence. The aim of this paper is to show that never in the...

Whereas many others have scrutinized the Allais paradox from a theoretical angle, we study the paradox from an historical perspective and link our findings to a suggestion as to how decision theory could make use of it today. We emphasize that Allais proposed the paradox as a normative argument,...

The present paper considers the implications of the postulate that the activities of scientists constitute complex phenomena in the sense associated with the methodological writings of the Nobel Prize-winning Austrian economist, methodologist, and political philosopher, F.A. Hayek. Although...

This paper translates F.A. Hayek's informal capital theory into a dynamic equilibrium model. The focus is restricted to Hayek's largely unrecognized contribution in "Utility Analysis and Interest", published by The Economic Journal in 1936, being restated in "The Pure Theory of Capital", first...

This book chapter demonstrates that there has been from Adam Smith to Vernon Smith a tradition of economic scholarship that is grounded in the decision calculus of individuals, or what F.A. Hayek referred to as the logic of choice, which requires neither the heroic assumptions of omniscience,...

An under-appreciated aspect of F.A. Hayek's mature views about rationality is the inter-relation of the “pure logic of choice” and rule-following behavior. Sometimes it is asserted that Hayek abandoned his earlier understanding of individual rationality and replaced it with a completely...

The present paper considers the implications of the postulate that the activities of scientists constitute complex phenomena in the sense associated with the methodological writings of the Nobel Prize-winning Austrian economist, methodologist, and political philosopher, F.A. Hayek. Although...

A very, very, very severe problem has been occurring repeatedly over the last 100 years in the social sciences and philosophy, when it comes to the question of understanding the meaning of Keynes ‘s logical theory of probability and his concept of rational degrees of belief. It is the failure...

Recent exchanges between two academics on the Internet ,both experts in conventional and unconventional approaches to decision theory, reveal an astounding lack of knowledge and understanding regarding the makeup of Keynes's logical theory of probability as put forth by Keynes in 1921,...