The Dissenter

#1166 Alexander Rosenberg: Why Economic Theory Can't Get Any Better...Why We Need It Anyway

Oct 23, 2025
Guest
Alexander Rosenberg
Dr. Alexander Rosenberg, a philosopher and distinguished professor at Duke University, dives into the complexities of economic theory. He argues that while economics may not meet the standards of predictive science, it remains a crucial tool for policymakers dealing with self-interested behavior. The discussion also explores the concept of homo economicus, game theory's role in market interaction, and the importance of economic structures in preventing exploitation. Rosenberg insists that despite limitations, economic theory is vital for designing effective institutions.
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INSIGHT

Why Economic Theory Matters For Policy

  • Economic theory is crucial for policymakers to understand strategic interactions among self-interested individuals.
  • Game theory is indispensable for designing institutions that manage people who game systems.
INSIGHT

Economics As A Blunt Non-Science

  • Rosenberg argues economics fails to meet scientific standards because it predicts poorly despite mathematical rigor.
  • He calls economic theory a useful but blunt tool, not a true empirical science.
INSIGHT

Theory-Driven Economics Versus Empirics

  • Economic theory remains theory-driven, relying on thought experiments and rational choice elaborations.
  • Empirical subfields exist, but the core micro models remain largely insulated from data.
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