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The 'expected utility hypothesis' and 'Savage's Sure-Thing Principle' are violated in real life decisions, as shown by the 'Allais' and 'Ellsberg paradoxes'. The popular explanation in terms of 'ambiguity aversion' is not completely…

Physics and Society · Physics 2013-01-07 Diederik Aerts , Sandro Sozzo

Many economic theories have been introduced over the course of history to articulate our understanding of the economy. Classical theories by Adam Smith and David Ricardo's Comparative Advantage have been foundational for the last century's…

Theoretical Economics · Economics 2025-11-19 Sidharth Gat

Despite the extraordinary successes the two great bastions of $20^{th}$ century science (Quantum Theory and General Relativity) are troubled with serious conceptual and mathematical difficulties. As a result, further growth of fundamental…

Popular Physics · Physics 2007-05-23 Bhag C. Chauhan

Conventional economic analysis of stringent climate change mitigation policy generally concludes various levels of economic slowdown as a result of substantial spending on low carbon technology. Equilibrium economics however could not…

Physics and Society · Physics 2015-01-29 J. F. Mercure , H. Pollitt , U. Chewpreecha , P. Salas , A. Foley , P. B. Holden , N. R. Edwards

This article reviews and develops an epistemological tradition in the philosophy of science, known as convergentism, which holds that inference methods should be assessed based on their ability to converge to the truth across a range of…

Other Statistics · Statistics 2025-07-01 Hanti Lin

Completeness and transitivity are standard rationality conditions in economics. However, under ambiguity, decision makers sometimes violate these requirements because of the difficulty of forming accurate predictions about ambiguous events.…

Theoretical Economics · Economics 2025-09-16 Kensei Nakamura , Shohei Yanagita

We report the results of an exploratory study that examines the judgments of climate scientists, climate policy experts, astrophysicists, and non-experts (N = 3,367) about the factors that contribute to the creation and persistence of…

Atmospheric and Oceanic Physics · Physics 2018-02-07 James R. Beebe , Maria Baghramian , Luke O'C. Drury , Finnur Dellsen

The ideas of aleatoric and epistemic uncertainty are widely used to reason about the probabilistic predictions of machine-learning models. We identify incoherence in existing discussions of these ideas and suggest this stems from the…

Machine Learning · Computer Science 2025-08-19 Freddie Bickford Smith , Jannik Kossen , Eleanor Trollope , Mark van der Wilk , Adam Foster , Tom Rainforth

Environmental determinism in the past followed from the belief that the gods bestowed political power and the best possible weather on the sponsors of early scholars. Although later discredited in academia because of the associations with…

Physics and Society · Physics 2025-11-18 Richard S. J. Tol

A vast body of literature addresses the complex nature of science's reproducibility crisis. In contrast with this perceived complexity, some recent papers from the discipline of physics suggests that irreproducibility does not point to a…

Physics and Society · Physics 2021-07-16 Andrea Saltelli , Monica Di Fiore , Francesco Spanò

The following measures against unemployment are proposed: In the short term, to promote greater income for the poorest sectors. It is shown that this can be paid with the resulting increased production, without losing income to the other…

Economics · Quantitative Finance 2017-08-23 Thomas Pedro Eggarter

Contrary to claims about the irrelevance of philosophy for science, I argue that philosophy has had, and still has, far more influence on physics than is commonly assumed. I maintain that the current anti-philosophical ideology has had…

History and Philosophy of Physics · Physics 2018-06-06 Carlo Rovelli

If Economics is understood as the study of the interactions among intentional agents, being rationality the main source of intentional behavior, the mathematical tools that it requires must be extended to capture systemic effects. Here we…

Theoretical Economics · Economics 2023-09-13 Fernando Tohmé

In the absence of empirical confirmation, scientists may judge a theory's chances of being viable based on a wide range of arguments. The paper argues that such arguments can differ substantially with regard to their structural similarly to…

History and Philosophy of Physics · Physics 2017-02-07 Richard Dawid

Some of the most obviously correct physical theories - namely string theory and the multiverse - make no testable predictions, leading many to question whether we should accept something as scientific even if it makes no testable…

Cosmology and Nongalactic Astrophysics · Physics 2015-04-02 Douglas Scott , Ali Frolop , Ali Narimani , Andrei Frolov

The cost of the impacts of climate change have already proven to be larger than previously believed. Understanding the costs and benefits of adapting to the changing climate is necessary to make targeted and appropriate investment…

General Economics · Economics 2024-11-27 Anna Josephson , Rodrigo Guerra Su , Greg Collins , Katharine Jacobs

Stablecoins are one of the most widely capitalized type of cryptocurrency. However, their risks vary significantly according to their design and are often poorly understood. We seek to provide a sound foundation for stablecoin theory, with…

General Economics · Economics 2020-10-30 Ariah Klages-Mundt , Dominik Harz , Lewis Gudgeon , Jun-You Liu , Andreea Minca

Economic growth is measured as the rate of relative change in gross domestic product (GDP) per capita. Yet, when incomes follow random multiplicative growth, the ensemble-average (GDP per capita) growth rate is higher than the time-average…

General Economics · Economics 2020-09-23 Alexander Adamou , Yonatan Berman , Ole Peters

In an earlier paper~\cite{Luu:2019jmb} we discussed emergence from the context of effective field theories, particularly as related to the fields of particle and nuclear physics. We argued on the side of reductionism and weak emergence.…

History and Philosophy of Physics · Physics 2020-12-21 Thomas Luu , Ulf-G. Meißner

This article proposes predictive economics as a distinct analytical perspective within economics, grounded in machine learning and centred on predictive accuracy rather than causal identification. Drawing on the instrumentalist tradition…

General Economics · Economics 2025-10-07 Miguel Alves Pereira