A Review of Robert Sugden’s<i>Community of Advantage</i>

Harless, Patrick; Pancs, Romans

doi:10.1257/jel.20201621

Cited by 2 publications

(4 citation statements)

References 43 publications

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“…Ariely (2009) provides some psychological experiments in the laboratory to account for "coherent arbitrariness" in judgment and decision-making (Ariely et al, 2003). In the model of Sugden (2004), moreover, the opportunity is maximized instead of welfare because welfare is ill-defined (Harless and Pancs, 2022). Sen's (2005) and Nussbaum's (2011) capabilities approach also maximize opportunity.…”

Section: Rational Coherence and Behavioral Coherencementioning

confidence: 99%

The underlying coherent behavior in intraday dynamic market equilibrium

Shi

Guo

Fenu

et al. 2023

CFRI

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PurposeThis paper applies a volume-price probability wave differential equation to propose a conceptual theory and has innovative behavioral interpretations of intraday dynamic market equilibrium price, in which traders' momentum, reversal and interactive behaviors play roles.Design/methodology/approachThe authors select intraday cumulative trading volume distribution over price as revealed preferences. An equilibrium price is a price at which the corresponding cumulative trading volume achieves the maximum value. Based on the existence of the equilibrium in social finance, the authors propose a testable interacting traders' preference hypothesis without imposing the invariance criterion of rational choices. Interactively coherent preferences signify the choices subject to interactive invariance over price.FindingsThe authors find that interactive trading choices generate a constant frequency over price and intraday dynamic market equilibrium in a tug-of-war between momentum and reversal traders. The authors explain the market equilibrium through interactive, momentum and reversal traders. The intelligent interactive trading preferences are coherent and account for local dynamic market equilibrium, holistic dynamic market disequilibrium and the nonlinear and non-monotone V-shaped probability of selling over profit (BH curves).Research limitations/implicationsThe authors will understand investors' behaviors and dynamic markets through more empirical execution in the future, suggesting a unified theory available in social finance.Practical implicationsThe authors can apply the subjects' intelligent behaviors to artificial intelligence (AI), deep learning and financial technology.Social implicationsUnderstanding the behavior of interacting individuals or units will help social risk management beyond the frontiers of the financial market, such as governance in an organization, social violence in a country and COVID-19 pandemics worldwide.Originality/valueIt uncovers subjects' intelligent interactively trading behaviors.

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Section: Rational Coherence and Behavioral Coherencementioning

confidence: 99%

The underlying coherent behavior in intraday dynamic market equilibrium

Shi

Guo

Fenu

et al. 2023

CFRI

View full text Add to dashboard Cite

show abstract

“…However, many opportunity sets are not nested, and profound divergences remain as to how non-nested sets should be ranked in terms of how many opportunities they provide (e.g. Harless and Pancs 2022). As a result, the proponents of OPP often lack the resources to reliably assess how many opportunities are provided by competing policies.…”

Section: Opportunity-based Approachesmentioning

confidence: 99%

“…Fleurbaey 2012 a ; Hausman 2022, on several cases where expanding individuals’ opportunity sets leads to welfare losses due to greater cognitive/emotional decision costs and individuals’ vulnerability to harmful forms of addiction) and in strategic choice settings (e.g. Bicchieri 2017: Chs 3–4; Harless and Pancs 2022, on situations of strategic interaction where giving each player the option to defect turns the relevant cooperative games into prisoner’s dilemmas to the detriment of individuals’ payoffs). These concerns are exacerbated when one considers collective (rather than individual) opportunities.…”

Section: Opportunity-based Approachesmentioning

confidence: 99%

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Preferences versus opportunities: on the conceptual foundations of normative welfare economics

Fumagalli

2022

Economics and Philosophy

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Normative welfare economics commonly assumes that individuals’ preferences can be reliably inferred from their choices and relies on preference satisfaction as the normative standard for welfare. In recent years, several authors have criticized welfare economists’ reliance on preference satisfaction as the normative standard for welfare and have advocated grounding normative welfare economics on opportunities rather than preferences. In this paper, I argue that although preference-based approaches to normative welfare economics face significant conceptual and practical challenges, opportunity-based approaches fail to provide a more reliable and informative foundation for normative welfare economics than preference-based approaches. I then identify and rebut various influential calls to ground normative welfare economics on opportunities rather than preferences to support my qualified defence of preference-based approaches.

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A Review of Robert Sugden’sCommunity of Advantage

Cited by 2 publications

References 43 publications

The underlying coherent behavior in intraday dynamic market equilibrium

The underlying coherent behavior in intraday dynamic market equilibrium

Preferences versus opportunities: on the conceptual foundations of normative welfare economics

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