Non-Bayesian decision theory ante-litteram: the case of G. L. S. Shackle
This paper deals with the intellectual environment in which George L. S. Shackle’s theory of decision making was formulated and first discussed. Shackle’s approach had a great impact on decision theory in late 1940s and early 1950s being the single formalised attempt to discard the probability framework in the description of behaviour under uncertainty - a goal shared by Knight and Keynes. Against Shackle, Arrow defended the use of probability theory in decision making, by denying that the Knightian distinction between risk and uncertainty had any behavioural significance, and paving the way to Savage’s Foundations of Statistics as the new mainstream reference. Through an assessment of the reception of Shackle’s theory the paper presents the way a number of theoretical economists, psychologists, and mathematicians were interested in the viability of a formally structured alternative to theories of behaviour using probability statements to describe uncertainty. The paper aim to show that the lively but concentrated discussion on alternative decisional criteria Shackle was part of is crucial to understand the multifarious developments observed in modern decision theory in the last twenty years or so. Indeed, as discussed in a twin paper by Basili and Zappia, Shackle’s theory was a much more viable alternative to subjective expected utility than both its contemporary critics and modern decision theorists have recognised.
|Date of creation:||Jun 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza San Francesco 7, 53100 Siena|
Web page: http://www.depfid.unisi.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schmeidler, David, 1989.
"Subjective Probability and Expected Utility without Additivity,"
Econometric Society, vol. 57(3), pages 571-87, May.
- David Schmeidler, 1989. "Subjective Probability and Expected Utility without Additivity," Levine's Working Paper Archive 7662, David K. Levine.
- Marcello Basili & Carlo Zappia, 2007. "The weight of argument and non-additive measures: a note," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 003, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
- Itzhak Gilboa & David Schmeidler, 1992.
"Additive Representation of Non-Additive Measures and the Choquet Integral,"
985, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Itzhak Gilboa & David Schmeidler, 1994. "Additive Representations of Non-Additive Measures and the Choquet Integral," Post-Print hal-00753149, HAL.
- Kelsey, D., 1991.
"Choice Under Partial Uncertainty,"
91-19, Department of Economics, University of Birmingham.
- Marcello Basili & Carlo Zappia, 2009. "Shackle And Modern Decision Theory," Metroeconomica, Wiley Blackwell, vol. 60(2), pages 245-282, 05.
- G. L. S. Shackle, 1940. "A Reply to Professor Hart," Review of Economic Studies, Oxford University Press, vol. 8(1), pages 54-57.
- Amos Tversky & Daniel Kahneman, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Levine's Working Paper Archive
7656, David K. Levine.
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
- Lawson, Tony, 1985. "Uncertainty and Economic Analysis," Economic Journal, Royal Economic Society, vol. 95(380), pages 909-27, December.
- Quiggin, J. & Kelsey, D., 1991.
"Theories of Choice Under Ignorance and Uncertainty,"
91-17, Department of Economics, University of Birmingham.
- Kelsey, David & Quiggin, John, 1992. " Theories of Choice under Ignorance and Uncertainty," Journal of Economic Surveys, Wiley Blackwell, vol. 6(2), pages 133-53.
- Lachmann, Ludwig M, 1976. "From Mises to Shackle: An Essay on Austrian Economics and the Kaleidic Society," Journal of Economic Literature, American Economic Association, vol. 14(1), pages 54-62, March.
- Itzhak Gilboa & David Schmeidler, 1989.
"Maxmin Expected Utility with Non-Unique Prior,"
- G. L. S. Shackle, 1949. "A Non-Additive Measure of Uncertainty," Review of Economic Studies, Oxford University Press, vol. 17(1), pages 70-74.
- G. L. S. Shackle, 1942. "A Theory Of Investment-Decisions," Oxford Economic Papers, Oxford University Press, vol. 0(1), pages 77-94.
- Vaughn,Karen I., 1994. "Austrian Economics in America," Cambridge Books, Cambridge University Press, number 9780521445528, 1.
- Tversky, Amos & Kahneman, Daniel, 1992. " Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
- Paul Davidson, 1983. "Rational Expectations: A Fallacious Foundation for Studying Crucial Decision-Making Processes," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(2), pages 182-198, January.
- Coddington, Alan, 1982. "Deficient Foresight: A Troublesome Theme in Keynesian Economics," American Economic Review, American Economic Association, vol. 72(3), pages 480-87, June.
- Ramsey, Frank P., 1926. "Truth and Probability," Histoy of Economic Thought Chapters, in: Braithwaite, R. B. (ed.), The Foundations of Mathematics and other Logical Essays, chapter 7, pages 156-198 McMaster University Archive for the History of Economic Thought.
- F. H. Hahn, 1955. "Uncertainty and the Cobweb," Review of Economic Studies, Oxford University Press, vol. 23(1), pages 65-75.
When requesting a correction, please mention this item's handle: RePEc:usi:depfid:0408. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlo Zappia)
If references are entirely missing, you can add them using this form.