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The cognitive economy: the probabilistic turn in psychology and human cognition.
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Abstract: The problem of induction refers to the difficulties involved in the process of justifying experience-based scientific conclusions. Synopsis Concepts of probability are an integral component of economic theory. However there are a wide range of theories of probability and these are manifested in different approaches to economic theory itself.
In this book Charles R. McCann Jr provides a clear and informative survey of the area which serves to standardize terminology and so integrate probability into a discussion of the foundations of economic theory. Having summarized the three main competing interpretations of probability, he outlines why it is of such a fundamental importance in economics, illustrating this with a comparison of Knight's and Keynes' very different conceptions.
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