Friday, November 01, 2013

Mises and Kahneman

Well I read condom on... Ha! That is what Siri thinks I should have here. Let us begin again:

While I read Kahneman critiquing rational choice theory, I often have Mises in the back of my head. Mises theory of "rational choice" (if we want to call praxeology that) is pretty much left untouched by Kahneman's critique, e.g., Mises would say, "If people choose to value a coffee cup they have in hand more than an identical coffee cup they might acquire, so be it."

Of course, the price paid for this prophylactic (oh my, back to condoms again, are we?) is that it drains Mises's theory of empirically testable implications.

But, I wonder, have I missed anything? Are their findings by Kahneman that would have worried Mises?

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