The Case for Mindless Economics

Neuroeconomics proposes radical changes in the methods of economics. This essay discusses the proposed changes in methodology, together with the the neuroeconomic critique of standard economics. We do not assess the contributions or promise of neuroeconomic research. Rather, we offer a response to the neuroeconomic critique of standard economics. † This research was supported by grants from the National Science Foundation. We thank Drew Fudenberg and Philipp Sadowski for helpful comments and suggestions.

[1]  R. H. Strotz.  Myopia and Inconsistency in Dynamic Utility Maximization , 1955 .

[2]  Evan L. Porteus,et al.  Temporal Resolution of Uncertainty and Dynamic Choice Theory , 1978 .

[3]  David M. Kreps.  A REPRESENTATION THEOREM FOR "PREFERENCE FOR FLEXIBILITY" , 1979 .

[4]  R. Thaler.  Toward a positive theory of consumer choice , 1980 .

[5]  Larry G. Epstein,et al.  Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework , 1989 .

[6]  C. Plott.  psychology and economics , 1990 .

[7]  Larry G. Epstein,et al.  Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: An Empirical Analysis , 1991, Journal of Political Economy.

[8]  Daniel Kahneman.  New challenges to the rationality assumption , 1994 .

[9]  G. Loewenstein.  Out of control: Visceral influences on behavior , 1996 .

[10]  Peter H. M. P. Roelofsma,et al.  Anomalies in intertemporal choice , 1996 .

[11]  David I. Laibson,et al.  Golden Eggs and Hyperbolic Discounting , 1997 .

[12]  N. Aplin,et al.  PSYCHOLOGICAL EXPECTED UTILITY THEORY AND ANTICIPATORY FEELINGS * A , 1997 .

[13]  Faruk Gul,et al.  SELF-CONTROL AND THE THEORY OF CONSUMPTION , 1999 .

[14]  Faruk Gul,et al.  Temptation and Self‐Control , 1999 .

[15]  Ted O’Donoghue,et al.  Doing It Now or Later , 1999 .

[16]  David I. Laibson,et al.  A Cue-Theory of Consumption , 2001 .

[17]  Wolfgang Pesendorfer,et al.  The Revealed Preference Theory of Changing Tastes , 2005 .

[18]  M. Rabin.  A Perspective on Psychology and Economics , 2002 .

[19]  G. Loewenstein,et al.  Time Discounting and Time Preference: A Critical Review , 2002 .

[20]  Matthew Rabin,et al.  Studying Optimal Paternalism, Illustrated by a Model of Sin Taxes , 2003 .

[21]  Colin Camerer,et al.  Regulation for Conservatives: Behavioral Economics and the Case for 'Asymmetric Paternalism' , 2003 .

[22]  David I. Laibson,et al.  Neuroeconomics: How Neuroscience Can Inform Economics , 2005 .

[23]  Colin Camerer,et al.  Neuroeconomics: Why Economics Needs Brains , 2004 .

[24]  Ming Hsu,et al.  Ambiguity Aversion in the Brain , 2004 .

[25]  M. Rabin,et al.  A Model of Reference-Dependent Preferences , 2006 .