[no subject]

[Paul Davidson <pdavidson@xxxxxxx>]

From the Nobel Foundations press release [MY EMPHASIS IN CAPITAL LETTERS]:

Kahneman has integrated insights from psychology into economics, thereby
laying the foundation for a new field of research. Kahneman's main findings
concern decision-making under uncertainty, where he has demonstrated how
human decisions may systematically depart from those predicted by standard
economic theory. Together with Amos Tversky (deceased in 1996), he has
formulated prospect theory as an alternative, that better accounts for
observed behavior.
> Kahneman has integrated insights from psychology into economics, thereby
> laying the foundation for a new field of research. Kahneman's main
> findings concern decision-making under UNCERTAINTY, where he has
> demonstrated how human decisions may systematically depart from those
> predicted by standard economic theory. Together with Amos Tversky
> (deceased in 1996), he has formulated prospect theory as an alternative,
> that better accounts for observed behavior. Kahneman has also discovered
> how human judgment may take heuristic shortcuts that systematically depart
> from basic PRINCIPLES OF PROBABILITY".

I hope Gary M. will recognize that the Kahnnman analysis still assumes that
there exists an objective probability distribution and all he is providing
is special cases when agents take "short cuts".

Case closed, I hope.

Paul
Paul Davidson
Editor, Journal of Post Keynesian Economics
Economics Department - 523 SMC
University of Tennessee
Knoxville, Tennessee 37996-0550
phone # (865) 974-4221
fax # (865) 974-1686
home phone  (865) 692-0802
http://econ.bus.utk.edu/davidsonextra/Davidson.html