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The Confusion of Is and Ought in Game Theoretic Contexts

Author

Listed:
  • Joseph B. Kadane

    (Carnegie-Mellon University)

  • Patrick D. Larkey

    (Carnegie-Mellon University)

Abstract

This paper explores the distinction between normative and positive theoretical statements in a game theoretic context from a Bayesian perspective. Normative and positive theoretical statements are often confused in decision making research. The confusion results from some unique epistemological and methodological problems associated with cognitive behavior as an object for scientific inquiry. The confusion persists because of poor model validation procedures which are themselves further complicated by the confusion. The confusion greatly impedes the development of more useful prescriptions for and predictions of human decision behavior. From a Bayesian perspective which acknowledges the importance of incomplete information and imperfect theories of behavior, the confusion is unnecessary.

Suggested Citation

  • Joseph B. Kadane & Patrick D. Larkey, 1983. "The Confusion of Is and Ought in Game Theoretic Contexts," Management Science, INFORMS, vol. 29(12), pages 1365-1379, December.
  • Handle: RePEc:inm:ormnsc:v:29:y:1983:i:12:p:1365-1379
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    File URL: http://dx.doi.org/10.1287/mnsc.29.12.1365
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    Citations

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    Cited by:

    1. Velu, C. & Iyer, S., 2008. "The Rationality of Irrationality for Managers: Returns- Based Beliefs and the Traveller’s Dilemma," Cambridge Working Papers in Economics 0826, Faculty of Economics, University of Cambridge.
    2. Rudolf Vetschera, 2004. "Behavioral uncertainty and investments in cooperative relationships," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(1), pages 17-27.
    3. Guilhem Lecouteux, 2017. "Bayesian Game Theorists and Non-Bayesian Players," GREDEG Working Papers 2017-30, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    4. Robert Nau, 2001. "De Finetti was Right: Probability Does Not Exist," Theory and Decision, Springer, vol. 51(2), pages 89-124, December.
    5. Guilhem Lecouteux, 2017. "Bayesian Game Theorists and non-Bayesian Players," Working Papers halshs-01633126, HAL.
    6. Joseph Kadane & Javier Girón & Daniel Peña & Peter Fishburn & Simon French & D. Lindley & Giovanni Parmigiani & Robert Winkler, 1993. "Several Bayesians: A review," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(1), pages 1-32, December.
    7. Velu, C. & Iyer, S., 2008. "Returns-Based Beliefs and The Prisoner’s Dilemma," Cambridge Working Papers in Economics 0854, Faculty of Economics, University of Cambridge.

    More about this item

    Keywords

    game theory;

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