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Paul's avatar

It is interesting to see economists like yourself and John Quiggan pick up on LA Paul. My own take is that while it is an interesting it is not really a new insight. The origins of rational choice theory as expected utility calculus, in both analytic philosophy and economics is Frank Ramsey. However, Keynes, who knew Ramsey well, developed a different approach which emphasized uncertainty as distinct from risk. Instead of an investment decision in the face of uncertainty the problem for Paul is one of a life choice in the face of uncertainty of outcomes.

But before Keynes, Frank Knight had developed this concept of uncertainty. And if you look at his Knight's more philosophical essays like Ethics and the Economics Interpretation, you can see clear anticipations of something like Paul's view. or at least the framework for it. Ironically, Stigler did his dissertation with Knight.

Sen's Rational Fools is going in the same direction, as is Harry Frankfurt's distinction between first and second order desires -- and LA Paul must certainly be aware of Frankfurt. Albert Hirschman does a nice job of opposing these Sen/Frankfurt insights to Becker/Stigler in "Against Parsimony: Three Easy Ways of Complicating Some Categories Of Economic Discourse."(1984)

So I think we should see LA Paul's relevance for economics as simply an addition to a long-standing, if unorthodox, line in economic/philosophical thought.

Bob Eno's avatar

Very interesting post! I haven't read Paul but the framing of the issues in this post alone is engaging. I think the basic point that every considered decision concerning a largely novel experience is, in a meaningful way, deeply unable to be well informed because of self-transformations entailed in any decision seems to me philosophically inarguable. But I'm not sure this is not something we don't already factor into such decisions. I think "rational" deliberation in actual practice is simply modeling a procedure that we know how to execute in order to do "due diligence," with an understanding that due diligence is about process, not outcomes, though we expect some degree of relation (which is why we prize due diligence). I suppose this is what Paul means by "authentic living": alertly engaged (cognitively and emotionally) decision making, deploying both rational and emotive intelligence.

I think this is actually quite different than the case of first tasting durian. Durian, like cilantro, is well known for producing dramatically divergent qualia in people based on genetic factors. It is certainly true that only by tasting durian will you know what it is like, but even if you're well informed about the science, what it will taste like to you is a complete mystery until the moment you taste (or smell) the meat of the fruit. Very few decisions are boxes as black as novel smells and tastes; our imaginations can normally do meaningful exploration in advance.

Because this comment isn't long enough I want to describe my own encounter with durian. It took place in a formal setting at a buffet banquet overseas. I mistook the mashed durian for vanilla pudding, which I would happily live on exclusively, and I scooped a large pile onto my plate. When I returned to my table, aware of an awful smell in the dining room, one Singaporean host said, “Look how he loves durian!” and I received a round of approving smiles from other hosts. My first taste revealed to me that the smell that had repelled me was the durian. Apparently, my genes are dialed to the durian-is-vomit setting. Given the situation, my durian-decision was framed in terms of disappointing and offending my hosts or making my masquerade intentional. I chose the latter in the expectation that I could suppress the urge to throw up, build character, and then re-weaken my character by turning this into a story that I would repeat in order to make myself appear heroically stoic, while actually wallowing in self-indulgence. As you can see, that is how it has worked out.

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