Strong and Wrong
| Author | Andrew Schotter |
| Published date | 01 October 2006 |
| Date | 01 October 2006 |
| DOI | http://doi.org/10.1177/0951629806067455 |
| Subject Matter | Articles |
Journal of Theoretical Politics 18(4): 498–511 Copyright &2006 Sage Publications
DOI: 10.1177/0951629806067455 London, Thousand Oaks, CA and New Delhi
http://jtp.sagepub.com
STRONG AND WRONG
THE USE OF RATIONAL CHOICE THEORY IN
EXPERIMENTAL ECONOMICS
Andrew Schotter
ABSTRACT
The main purpose of rational choice theory is to lay out in clear and trans-
parent terms what conditions are necessary and/or sufficient for the validity
of statements about consistent human behavior. Strong criteria for rationality
are ‘wrong’ if understood as a positive description. However, their very
strength provides a sharp guide for experimental social science’s project of
mapping the properties of individual behavior.
KEY WORDS .behavioral economics .experiments .rational choice
1. Introduction
Many people have summarized the theme of George W. Bush’s presidential
campaign as saying it is better to be ‘strong and wrong’ than to be wavering
and inconclusive (a flip-flopper). Ironically (or perhaps unfortunately) in this
article I am going to argue something similar about economic theory speci-
fically and rational choice theory in general. It is useful to be strong and
wrong. The difference between myself and our President, however, is that I
consider the benefits of being strong and wrong to come mostly from what
we can learn from being wrong rather than the thrill of pretending to be
strong. Before entering into the main argument of this article, I begin with
a brief outline of what I see as the epistemological benefits of rational
choice theory.
2. The Rational Choice Debate
I must admit that I am always confused when I hear the debates over rational
choice theory that take place in other social sciences. To be more precise, I
consider rational choice theory and the modelling that accompanies it, to
be simply an effort to delineate under what circumstances certain statements
To continue reading
Request your trial