The Curious Culture of Economic Theory

An essay collection that insightfully explores the professional culture of contemporary economic theory, highlighting key features of successful economic theory from the last quarter century.

When is a theoretical result taken seriously enough for economic application? How do theorists actively try to influence this judgment? What determines whether a new theoretical subfield adopts a “pure” or an “applied” style? How do theorists respond to economists’ penchant for “rational” explanations of human behavior? These are just some of the questions regarding the professional culture of contemporary economic theory that Ran Spiegler attempts to answer in this incisive essay collection, The Curious Culture of Economic Theory. In exploring these questions, Spiegler addresses the norms that economic theorists apply as they produce, evaluate, and disseminate research.

Introducing a new genre—a kind of cultural criticism of economic theory—the essays in this unique collection highlight elements of style and rhetoric that characterize classic pieces of economic theory from the last quarter century. For each piece, Spiegler offers a precise yet accessible exposition of modern classics of economic theory while placing them in the broader context of the field’s professional culture. Affectionate in its criticism and anthropological in its approach, The Curious Culture of Economic Theory is as valuable a complement to standard textbooks in graduate-level economic theory, game theory, and behavioral economics as it is to the libraries of practicing economic theorists, academic economists, historians of economic thought, and philosophers of economics.Preface vii
1 Apps and Stories (an Introduction) 1
2 The Paradox around the Corner 9
3 The Applied-Theory Style 27
4 The Path of Least Theory 47
5 Rational X 71
6 Appendicitis 97
7 Cover Versions 115
8 From Competitive Equilibrium to Mechanism Design in Eighteen Months 137
9 A Placebo Trilogy 159
10 Tiki-Taka (an Epilogue) 175
Notes 181
References 187
Index 199
Contents“This is a beautifully written book, which critically evaluates the use of theory in addressing substantive economic issues. It is unique in identifying cultural biases that shape theoretical reasoning. It is a rare methodological contribution.”
—Elhanan Helpman, Galen L. Stone Professor of International Trade, Department of Economics, Harvard University, and Archie Sherman Professor of International Economic Relations, Emeritus, Berglas School of Economics, Tel Aviv University
 
“This brilliant collection of essays strikes at the heart of the culture that is prevalent among economic theorists. An insightful and much-needed reflection upon economic theory as is, could be, or should be.”
—Michele Piccione, Professor of Economics, London School of Economics
 
“A highly original reflection on the state of economic theory.  Providing a provocative critique of how research is produced, perceived, and rewarded, Spiegler gives exceptionally clear discussions of many important recent contributions.”
—Joel Sobel, Professor of Economics, UCSD
 
“Why is one theory paper labelled ‘applied’ and another ‘pure,’ even though they’re based on the same underlying model? Ran Spiegler provides provocative and unexpected answers to this conundrum and others.”
—Eric Maskin, Nobel Laureate in Economics, Harvard UniversityRan Spiegler is Professor of Economics at Tel Aviv University and University College London, specializing in economic theory. He is the author of Bounded Rationality and Industrial Organization. In 2017, he received the Yrjö Jahnsson Award in Economics, in recognition of his contributions to this area.