Journal of Economic Literature
Book Reviews
2026-09-01
Larry Samuelson of Yale University reviews “The Foundations of Positive and Normative Economics: A Handbook” by Andrew Caplin, Andrew Schotter,. The EconLit Abstract of the reviewed work begins “Fifteen papers, resulting from a New York University conference held in August 2006, consider how best to incorporate new measurement technologies related to choice behavior into the current, united paradigm of economics. Papers discuss the case for mindless economics; the case for mindful economics; what is so informative about choice; two points of view regarding revealed preference and behavioral economics; some thoughts on the principle of revealed preference; mindless or mindful economics--a methodological evaluation; choice-theoretic foundations for behavioral welfare economics; revealed mistakes and revealed preferences; the economist as therapist--methodological ramifications of “light” paternalism; look-ups as the windows of the strategic soul; revealed preference and bounded rationality; the seven properties of good models; researcher incentives and empirical methods; choice and process--theory ahead of measurement; and economic theory and psychological data--bridging the divide. Caplin is Professor of Economics and Codirector of the Center for Experimental Social Science at New York University. Schotter is Professor of Economics and Director of the Center for Experimental Social Science at New York University. Index.”