| Authors |
Koundouri, P., Pittis, N. and Samartzis, P. |
| Title |
Rationality in Economics: Epistemic Assumptions and Pragmatic Justifications |
| Abstract |
This paper has three main objectives. First, it aims to clarify the alternative concepts of rationality used in economics, specifically Rationality-A(coherence of subjective probabilities for every point in time), Rationality-
B (perfect alignment with objective probabilities for every point in time),and Rationality-BB (asymptotic convergence to objective probabilities over time). Second, it seeks to identify distinct sets of epistemic assumptions (S1-S5) that logically entail each of these three definitions of rationality and to explain their respective roles. Third, it evaluates the pragmatic justifications for these assumptions, focusing on Dutch Book arguments for coherence and arbitrage arguments for asymptotic accuracy. |
| Creation Date |
2025-01-05 |
| Keywords |
Rationality, Coherence, Accuracy, Epistemic Assumptions, Pragmatic Justifications |
| Classification JEL |
C44, D81, D83, D89 |
| File |
2025.FINAL.RATIONALITY.pdf (304688 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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