29
Apr
12

EconTalk: Rubinstein on Game Theory and Behavioral Economics : Free Download & Streaming : Internet Archive

See on Scoop.itBounded Rationality and Beyond

Ariel Rubinstein of Tel Aviv University and New York University talks with EconTalk host Russ Roberts about the state of game theory and behavioral economics, two of the most influential areas of economics in recent years. Drawing on his Afterword for the 60th anniversary edition of Von Neumann and Morgenstern’s Theory of Games and Economic Behavior, Rubinstein argues that game theory’s successes have been quite limited. Rubinstein, himself a game theorist, argues that game theory is unable to yield testable predictions or solutions to public policy problems. He argues that game theorists have a natural incentive to exaggerate its usefulness. In the area of behavioral economics, Rubinstein argues that the experimental results (which often draw on game theory) are too often done in ways that are not rigorous. The conversation concludes with a plea for honesty about what economics can and cannot do.

See on archive.org

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