What's so Informative about Choice?

Andrew Schotter

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Like any other science, economics, as suggested by Milton Friedman, aims to come up with a "hypothesis" or "theory" that can possibly explain certain phenomena. The author of this chapter attempts to test theory by comparing choices made in the laboratory with specific predictions. The process of discovery, like that practiced in other sciences, involves the conceptualization of a theory, testing it empirically through experimentation, and modifying it with the aid of empirical or experimental evidence. In choosing the data to be used in such experiments, one has to consider that direct observable indicators like prices are the only reliable sources when dealing with conventional theory. On the other hand, choices that account for emotions, beliefs, and other such sources are essential when taking an operationalist view.

    Original languageEnglish (US)
    Title of host publicationThe Foundations of Positive and Normative Economics
    Subtitle of host publicationA Hand Book
    PublisherOxford University Press
    ISBN (Electronic)9780199851768
    ISBN (Print)9780195328318
    DOIs
    StatePublished - Oct 3 2011

    Keywords

    • Conventional theory
    • Discovery
    • Economics
    • Hypothesis
    • Milton Friedman
    • Operationalist view
    • Reliable data
    • Science
    • Theory

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

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  • Cite this

    Schotter, A. (2011). What's so Informative about Choice? In The Foundations of Positive and Normative Economics: A Hand Book Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195328318.003.0003