2020 Nobel Prize in Economics: A Reading List

On 2 November 2020, TINT will host a seminar titled “Winner’s Curse? A Discussion on the 2020 Nobel Prize in Economics“. The speakers are Hannu Vartiainen and Beatrice Cherrier.

The seminar will take place online via Zoom from 2 to 5 pm (Helsinki time). If you’d like to join please visit TINT’s blog.

If you’d like to get prepared for this event or read more about this year’s Nobel Prize in Economics, here is a reading list. I hope you’ll find it useful.

2020 Nobel Prize in Economics Reading list

(Some of the articles are be behind a paywall, sorry)

Introductory articles for the uninitiated

Blog Posts

Introductory articles

Historical and Philosophical Perspectives on Prize related work

  • Alexandrova, A., & Northcott, R. (2009). Progress in Economics: Lessons from the Spectrum Auctions. In D. Ross & H. Kincaid (Eds.), The Oxford Handbook of Philosophy of Economics (pp. 306–336). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780195189254.003.0011
  • Boldyrev, I. A. (2012). Philosophy of Science or Science and Technology Studies? Economic Methodology and Auction Theory. International Studies in the Philosophy of Science, 26(3), 289–307. https://doi.org/10.1080/02698595.2012.731732
  • Cherrier, B., & Saïdi, A. (2020). A Century of Economics and Engineering at Stanford. History of Political Economy, 52, 85–111. https://doi.org/10.1215/00182702-8717936
  • Hitzig, Z. (2020). The normative gap: mechanism design and ideal theories of justice. Economics and Philosophy, 36(3), 407–434. https://doi.org/10.1017/S0266267119000270
  • Guala, F. (2001). Building economic machines: The FCC auctions. Studies in History and Philosophy of Science Part A, 32(3), 453–477. https://doi.org/10.1016/S0039-3681(01)00008-5
  • McAfee, R. P., McMillan, J., & Wilkie, S. (2012). The Greatest Auction in History. In J. J. Siegfried (Ed.), Better Living through Economics (pp. 168–184). Harvard: Harvard University Press.
  • Nik-Khah, E. (2008). A tale of two auctions. Journal of Institutional Economics, 4(01). https://doi.org/10.1017/S1744137407000859

Exchange between Promarket.org authors & Milgrom

Some Twitter comments

A summer reading list for students of Philosophy of Economics

I prepared this list for my Philosophy of Economics students (Erasmus School of Economics, Erasmus University Rotterdam). Most books in this list should be interesting even if you do not like philosophy of economics, but they are related to the topics we have discussed in class. Of course, they will be even more interesting if you put your philosopher of economics hat on. The list consists mostly of light books that you can read on the beach, in a hammock, on top of a mountain, or wherever you are fancying for the holiday. They are good books, nevertheless. I hope you will find this list useful and enjoy reading these books.

The reading list

The first group of books in the list is about economics, economists, and how models are used. The first book, Dani Rodrik’s Economics Rules gives a wonderful and easily digestible overview of how economics works. Rodrik is a prominent economist and in this book, he defends economics against criticism. However, he also criticises economists for misusing their models. Dani Rodrik’s overview closely relates to our discussion concerning models and explanation in economics. This is a very good book. The second book by Diane Coyle, The Soulful Science, gives an overview of what economists actually do. Although it is a bit outdated, its overview of research areas in economics is very useful—especially if you are considering pursuing a career that involves research. Roger Backhouse’s The Puzzle of Modern Economics paints a picture of economics as a powerful science by discussing how economic models are used by economists in practice. This is not a bestseller. In fact, many people do not know that this book exists, but it is a very good book.  The last book in the list also discusses how economic models are used in practice. Alvin Roth received the Nobel Prize in Economics in 2012. His book, Who Gets What—and Why, gives a highly readable and moderately enjoyable story of how economists design markets. The whole book about to the following question we discussed during the lectures: what are the conditions under which we can carry the lessons we learn from models to the real world?

Picture1 Economics Rules: The Rights and Wrongs of the Dismal Science by Dani Rodrik
Picture2 The Soulful Science: What Economists Really Do and Why It Matters  by Diane Coyle
Picture3 The Puzzle of Modern Economics: Science or Ideology? by Roger E. Backhouse
Picture4 Who Gets What ― and Why: The New Economics of Matchmaking and Market Design by Alvin Roth

Next in our list are two books that are closely related to the several topics we have discussed in class. Both talk about the crowding-out effect of monetary incentives, touch on criticisms concerning rational choice and game theory, discuss several experiments, etc. Both books also discuss the moral and policy implications of economic models and the assumptions we employ. The Moral Economy requires a more careful reading. Thus, I suggest starting with The Why Axis.

Picture5 The Moral Economy: Why Good Incentives Are No Substitute for Good Citizens by Samuel Bowles
Picture6 The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life by Uri Gneezy and John List

Now, a bunch of books on behavioural economics. I am sure that many of you have read some of these books, but I would like to mention them anyway. I think both Nudge and Misbehaving are very readable introductions to behavioural economics, so they are definitely recommended. If you did not read it already, read Daniel Kahneman’s Thinking, Fast and Slow this summer. It is a very good book. But if you’d like to read something lighter to begin with, consider Dan Ariely’s Predictably Rational. It is a fun book. In fact, although they are not in my list, consider reading Ariely’s other books too. While reading these books you will remember several topics from our philosophy of economics course, or at least many things should sound familiar :)

Picture7 Misbehaving: The Making of Behavioral Economics by Richard H. Thaler
Picture8 Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler  and Cass R. Sunstein
Picture9 Thinking, Fast and Slow  by Daniel Kahneman
Picture10 Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely

If you are up for some serious reading on philosophy of economics, the following books should satisfy your desire. The first book by Robert Sugden (The Community of Advantage) wonderfully combines almost everything we discussed during the semester: welfare economics, behavioral economics, normative analysis, invisible hand, incentives, theories of justice, moral limits of markets etc. It is a new book, and if you would like to catch up with recent debates among economists, this is the book to read. If you would like to make some heavy lifting in philosophy of economics then you should also read the book by Hausman et al. It is heavier than other books. So, it is definitely not for the sunbed.

Picture11 The Community of Advantage: A Behavioural Economist’s Defence of the Market  by Robert Sugden
Picture12 Economic Analysis, Moral Philosophy, and Public Policy (3rd Edition), by Daniel Hausman, Michael McPherson, and Debra Satz

If our discussion on the moral limits of markets was interesting, I suggest the following two books. They are easy to read, but also critical. Test your philosophical argumentation skills as economists against these books!

Picture13 What Money Can’t Buy: The Moral Limits of Markets by Michael J. Sandel
Picture14 Why Some Things Should Not Be for Sale: The Moral Limits of Markets  by Debra Satz

If you’d like to brush up your economics while critically thinking about economics, I suggest the following books. Economics in Two Lessons is fairly new. I did not finish reading it yet, but it looks like an excellent book. The other two books are also fun to read.

Note that the last book in the list is special. Thomas Schelling’s Micromotives and Macrobehavior is one of my all-time favorites. If you read it, you will be amazed by the clarity of Schelling’s thinking. Although it does not explain economic concepts like the other books, it is about how you can understand the world with very simple models. It is a must read for all economics students.

Picture15 Economics in Two Lessons: Why Markets Work So Well, and Why They Can Fail So Badly by John Quiggin
Picture16 Economics: The User’s Guide: A Pelican Introduction by Ha-Joon Chang
Picture17 Economics Without Illusions: Debunking the Myths of Modern Capitalism by Joseph Heath
Picture18 Micromotives and Macrobehavior by Thomas C. Schelling

As an economist, you need to know more about inequality, international trade, economic growth, and many other topics. Here are four books that I think will help you follow the debates concerning important topics. I would like to mention One Economics, Many Recipes separately because it is the most relevant from the perspective of philosophy of economics. It shows how to use models of economic growth in practice, paying close attention to economic methodology.

Picture19 Global Inequality: A New Approach for the Age of Globalization  by Branko Milanovic
Picture20 Straight Talk on Trade: Ideas for a Sane World Economy by Dani Rodrik
Picture21 One Economics, Many Recipes: Globalization, Institutions, and Economic Growth  by Dani Rodrik
Picture22 Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoglu and James A. Robinson

Finally, a book about writing. Read it to improve your writing.

Picture23 Economical Writing: Thirty-Five Rules for Clear and Persuasive Prose (3rd edition) by Deirdre N. McCloskey

I think this list should get you through summer, but if you want more look at this reading list. If you would like to do some more serious reading, there is a reading list at the end of our syllabus.

Have a nice summer.


Call for Papers
12-13 OCTOBER 2017

Academy of Finland Centre of Excellence in the Philosophy of Social Sciences
University of Helsinki, Helsinki, Finland

What to make of highly unrealistic models? This is one of the big questions in contemporary philosophy of science, especially in philosophy of economics and biology.

Two sets of issues are relevant to answering this question. The first has to do with the ways in which highly unrealistic models should be characterized and the numerous ways in which models can be unrealistic. The key concepts here include those of representation and target, truth and falsity, abstraction and isolation, idealization and simplification, etc. Recent literature on models exhibits conceptual and terminological diversity and disagreement in characterizing unrealistic models. Different authors use different names to refer to highly unrealistic models: ‘toy model’, ‘fictional model’, ‘minimal model’, ‘non-representative model’, ‘model without a target’, ‘substitute model’, etc. Moreover, they sometimes use the same name to refer to different types of models. Neither the precise meanings nor the relations between these notions are clear in the literature.

The second set of issues has to do with the functions and uses of such unrealistic models. What purposes can they serve, and what purposes are actually pursued when using them? The main body of literature points to representational quality as grounding explanatory capacity despite abstraction, isolation, simplification and idealization. Others dispute this idea. Moreover, highly unrealistic models can serve other possible functions, next to their explanatory uses. Debates concerning the appropriate uses of highly unrealistic models need some tidying up.

TINT will host a workshop in Helsinki on 12-13 October 2017 in order to sort out some of the ambiguities and confusions in the literature and to contribute to a better understanding of the interpretations and uses of highly abstract and idealizing models. We are particularly interested in papers that (i) clarify the meaning of commonly used terms such as toy model, minimal model, fictional model, substitute model, etc, and that (ii) clarify the arguments for and against such models having explanatory import or some other epistemic or non-epistemic function. Papers that focus on and compare highly unrealistic models in economics and biology are particularly welcome.

If you would like to join us please send an extended abstract (750 – 1000 words) before 15 August 2017 to N. Emrah Aydinonat (emrah.aydinonat@helsinki.fi). We plan to publish a selection of papers from the symposium as a journal’s special issue. For this reason, authors accepted for the workshop are required to submit an extended summary of their argument (2000 – 2500 words) before the event. Extended summaries will be distributed to all participants in advance. The workshop will consist of short presentations followed by extensive discussion.

Location: University of Helsinki, Helsinki, Finland
Date: 12-13 October 2017
Deadline for abstract submission:  15 August 2017
Announcement of accepted abstracts: 1 September 2017
Deadline for the extended summary: 1 October 2017

Organizers: N. Emrah Aydinonat, Till Grüne-Yanoff and Uskali Mäki