Constructs and empirical basis in theories of economic behavior

Abstract

Theories of economic behavior often use ‘as-if-languages’: for example, analytical sentences or definitions are used as if they were synthetic and factual-normative theoretical constructs are used as if they were empirical concepts. Such as-if-languages impede the acquisition of knowledge and are apt to encourage the wrong assessment of actual research strategies. The author's criticism is first leveled at revealed-preference theory. In this theory ‘observed behavior’ is often understood in an empirical sense although it is a pure theoretical construct. Another example can be found in von Mises' representations on marketing behavior: here theoretical valuations are used to achieve a spurious streamlining of reality. Result: Scientists should not ogle with reality if they have nothing to say about it.