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What are Axiomatizations Good for?

Author

Listed:
  • Gilboa, Itzhak

    (Tel Aviv University - Eitan Berglas School of Economics; HEC Paris - Economics & Decision Sciences)

  • Postlewaite, Andrew

    (University of Pennsylvania - Department of Economics)

  • Samuelson, Larry

    (Yale University - Department of Economics; Yale University - Cowles Foundation)

  • Schmeidler, David

    (Tel Aviv University)

Abstract

In light of the interest in axiomatic models of decision making in recent years, one is led to ask, in what ways do axiomatic derivations advance positive economics? If economists are interested in predicting how people behave, without a pretense to change individual decision making, how can they bene fit from representation theorems, which are no more than equivalence results? We address these questions. We propose several ways in which representation results can be useful and discuss their potential implications for axiomatic decision theory.

Suggested Citation

  • Gilboa, Itzhak & Postlewaite, Andrew & Samuelson, Larry & Schmeidler, David, 2018. "What are Axiomatizations Good for?," HEC Research Papers Series 1318, HEC Paris.
    • Handle: RePEc:ebg:heccah:1318
    DOI: 10.2139/ssrn.3278957
    Note: Available at SSRN: https://ssrn.com/abstract=3278957 or http://dx.doi.org/10.2139/ssrn.3278957
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    Cited by:

    1. Evan Sadler, 2021. "A Practical Guide to Updating Beliefs From Contradictory Evidence," Econometrica, Econometric Society, vol. 89(1), pages 415-436, January.
    2. Gilles Boevi Koumou & Georges Dionne, 2022. "Coherent Diversification Measures in Portfolio Theory: An Axiomatic Foundation," Risks, MDPI, vol. 10(11), pages 1-19, October.
    3. Denis Bouyssou & Thierry Marchant & Marc Pirlot, 2023. "A theoretical look at Electre Tri-nB and related sorting models," 4OR, Springer, vol. 21(1), pages 1-31, March.
    4. Moscati, Ivan, 2021. "On the recent philosophy of decision theory," LSE Research Online Documents on Economics 115039, London School of Economics and Political Science, LSE Library.
    5. Lorenzo Bastianello & Jos'e Heleno Faro, 2019. "Time discounting under uncertainty," Papers 1911.00370, arXiv.org, revised Mar 2020.
    6. Aldo Montesano, 2022. "On the economic foundations of decision theory," Theory and Decision, Springer, vol. 93(3), pages 563-583, October.
    7. He, Ying & Dyer, James S. & Butler, John C. & Jia, Jianmin, 2019. "An additive model of decision making under risk and ambiguity," Journal of Mathematical Economics, Elsevier, vol. 85(C), pages 78-92.
    8. Denis Bouyssou & Thierry Marchant & Marc Pirlot, 2020. "A theoretical look at ELECTRE TRI-nB," Working Papers hal-02917994, HAL.
    9. Zhanyi Jiao & Steven Kou & Yang Liu & Ruodu Wang, 2022. "An axiomatic theory for anonymized risk sharing," Papers 2208.07533, arXiv.org, revised May 2023.
    10. Denis Bouyssou & Thierry Marchant & Marc Pirlot, 2020. "A theoretical look at ELECTRE TRI-nB," Working Papers hal-02898131, HAL.
    11. Ganesh Karapakula, 2022. "An Axiomatic Framework for Cost-Benefit Analysis," Papers 2207.13033, arXiv.org.
    12. Ruodu Wang & Ričardas Zitikis, 2021. "An Axiomatic Foundation for the Expected Shortfall," Management Science, INFORMS, vol. 67(3), pages 1413-1429, March.

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    More about this item

    Keywords

    Axiomatization; Philosophy; Economic Theory;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • D00 - Microeconomics - - General - - - General

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