Social norms, rational choice and belief change

This article elaborates on foundational issues in the social sciences and their impact on the contemporary theory of belief revision. Recent work in the foundations of economics has focused on the role external social norms play in choice. Amartya Sen has argued in [Sen93] that the traditional rationalizability approach used in the theory of rational choice has serious problems accommodating the role of social norms. Sen’s more recent work [Sen96, Sen97] proposes how one might represent social norms in the theory of choice, and in a very recent article [BS07] Walter Bossert and Kotaro Suzumura develop Sen’s proposal, offering an extension of the classical theory of choice that is capable of dealing with social norms. The first part of this article offers an alternative functional characterization of the extended notion of rationality employed by Bossert and Suzumura in [BS07]. This characterization, unlike the one offered in [BS07], represents a norm-sensitive notion of rationality in terms of a pure functional constraint unmediated by a notion of revealed preference (something that is crucial for the application developed in the second part of this article). This functional characterization is formulated for general domains (as is Bossert and Suzumura’s characterization) and is therefore empirically more applicable than usual characterizations of rationality. Interestingly, the functional constraint we propose is a variant of a condition first entertained in [AGM85] by Carlos Alchourr´on, Peter Gärdenfors and David Makinson in the area of belief change.
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Eduardo Fermé & Sven Ove Hansson (2011). AGM 25 Years. Journal of Philosophical Logic 40 (2):295-331.

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