Philippe Mongin

(1950 - 2020)

The paper analyses economic evaluations by distinguishing evaluative statements from actual value judgments. From this basis, it compares four solutions to the value neutrality problem in economics. After rebutting the strong theses about neutrality (normative economics is illegitimate) and non-neutrality (the social sciences are value-impregnated), the paper settles the case between the weak neutrality thesis (common in welfare economics) and a novel, weak non-neutrality thesis that extends the realm of normative economics more widely than the other weak thesis does.

Judgment aggregation theory generalizes social choice theory by having the aggregation rule bear on judgments of all kinds instead of barely judgments of preference. The theory derives from Kornhauser and Sager’s doctrinal paradox and Pettit’s discursive dilemma, which List and Pettit turned into an impossibility theorem – the first of a long list to come. After mentioning this formative stage, the paper restates what is now regarded as the “canonical theorem” of judgment aggregation theory. The last part of paper discusses how judgment aggregation theory connects with social choice theory and can contribute to it; it singles out two representative applications, one to Arrow’s impossibility theorem and the other to the group identification problem.

Following a long-standing philosophical tradition, impartiality is a distinctive and determining feature of moral judgments, especially in matters of distributive justice. This broad ethical tradition was revived in welfare economics by Vickrey, and above all, Harsanyi, under the form of the so-called Impartial Observer Theorem. The paper offers an analytical reconstruction of this argument and a step-wise philosophical critique of its premisses. It eventually provides a new formal version of the theorem based on subjective probability.

This thought-provoking book discusses the concept of progress in economics and investigates whether any advance has been made in its different spheres of research. The authors look back at the history, successes and failures of their respective fields and thoroughly examine the notion of progress from an epistemological and methodological perspective. The idea of progress is particularly significant as the authors regard it as an essentially contested concept which can be defined in many ways – theoretically or empirically; locally or globally; or as encouraging or impeding the existence of other research traditions. The authors discuss the idea that for progress to make any sense there must be an accumulation of knowledge built up over time rather than the replacement of ideas by each successive generation. Accordingly, they are not concerned with estimating the price of progress, reminiscing in the past, or assessing what has been lost. Instead they apply the complex mechanisms and machinery of the discipline to sub-fields such as normative economics, monetary economics, trade and location theory, Austrian economics and classical economics to critically assess whether progress has been made in these areas of research. Bringing together authoritative and wide-ranging contributions by leading scholars, this book will challenge and engage those interested in philosophy, economic methodology and the history of economic thought. It will also appeal to economists in general who are interested in the advancement of their profession.

The basic axioms or formal conditions of decision theory, especially the ordering condition put on preferences and the axioms underlying the expected utility formula, are subject to a number of counter-examples, some of which can be endowed with normative value and thus fall within the ambit of a philosophical reflection on practical rationality. Against such counter-examples, a defensive strategy has been developed which consists in redescribing the outcomes of the available options in such a way that the threatened axioms or conditions continue to hold. We examine how this strategy performs in three major cases: Sen's counterexamples to the binariness property of preferences, the Allais paradox of EU theory under risk, and the Ellsberg paradox of EU theory under uncertainty. We find that the strategy typically proves to be lacking in several major respects, suffering from logical triviality, incompleteness, and theoretical insularity. To give the strategy more structure, philosophers have developed “principles of individuation”; but we observe that these do not address the aforementioned defects. Instead, we propose the method of checking whether the strategy can overcome its typical defects once it is given a proper theoretical expansion. We find that the strategy passes the test imperfectly in Sen's case and not at all in Allais's. In Ellsberg's case, however, it comes close to meeting our requirement. But even the analysis of this more promising application suggests that the strategy ought to address the decision problem as a whole, rather than just the outcomes, and that it should extend its revision process to the very statements it is meant to protect. Thus, by and large, the same cautionary tale against redescription practices runs through the analysis of all three cases. A more general lesson, simply put, is that there is no easy way out from the paradoxes of decision theory.

L’ambiguïté qui existe entre l’interprétation du principe de différence par le maximin ou par le leximin est reconsidérée. Le maximin satisfait seulement le principe de Pareto-faible (x>y ssi chaque composante de x > la composante correspondante de y), tandis que le leximin satisfait le principe de Pareto-fort. À la différence du maximin, le leximin n’est pas représentable par des courbes d’indifférence. Dans la position originelle, le choix leximin l’emporterait sur le choix maximin ((2, 4) > (2,3)), qui semble plus proche des formulations de Rawls. Plusieurs solutions de l’ambiguïté sont évoquées, notamment celle que propose Alain Boyer, qui consiste à distinguer le maximin et le principe de différence en précisant que le second est le premier couplé à une règle tierce, la minimisation de l’inégalité. Cette solution, qui s’appuie par ailleurs sur un raisonnement suspect de Rawls sur la possibilité de trouver un troisième vecteur en enlevant n au plus riche, ce qui semble présupposer, comme le fait Boyer, que l’existence du fisc redistributeur est reconnue comme une possibilité dans la position originelle, est jugée insuffisante, en ce qu’elle ne vaut que pour le cas de deux individus (même si Rawls parle de deux classes). On suggère d’utiliser, pour les cas où le nombre des individus ou des classes est >2, un critère tel que la variance. Mais cela s’avère toujours insuffisant, et non justifiable dans la position originelle, et l’on fait appel à la théorie de la décision proposée par Gilboa et Schmeidler (1989 ; 1997) pour suggérer, par exemple, que le choix juste à faire entre (1, 2, 3) et (0, 3, 3) se porte sur le second état (où le plus pauvre a moins que dans l’autre cas). Cette règle demeure cependant plus proche du maximin (généralisé) que du leximin, peut être rapprochée de ce que l’on appelle le prioritarisme, et peut donc conserver une coloration appréciablement rawlsienne.

In Richard Bradley’s book, Decision Theory with a Human Face, we have selected two themes for discussion. The first is the Bolker-Jeffrey theory of decision, which the book uses throughout as a tool to reorganize the whole field of decision theory, and in particular to evaluate the extent to which expected utility theories may be normatively too demanding. The second theme is the redefinition strategy that can be used to defend EU theories against the Allais and Ellsberg paradoxes, a strategy that the book by and large endorses, and even develops in an original way concerning the Ellsberg paradox. We argue that the BJ theory is too specific to fulfil Bradley’s foundational project and that the redefinition strategy fails in both the Allais and Ellsberg cases. Although we share Bradley’s conclusion that EU theories do not state universal rationality requirements, we reach it not by a comparison with BJ theory, but by a comparison with the non-EU theories that the paradoxes have heuristically suggested.

Whereas many others have scrutinized the Allais paradox from a theoretical angle, we study the paradox from an historical perspective and link our findings to a suggestion as to how decision theory could make use of it today. We emphasize that Allais proposed the paradox as a normative argument, concerned with ‘the rational man’ and not the ‘real man’, to use his words. Moreover, and more subtly, we argue that Allais had an unusual sense of the normative, being concerned not so much with the rationality of choices as with the rationality of the agent as a person. These two claims are buttressed by a detailed investigation – the first of its kind – of the 1952 Paris conference on risk, which set the context for the invention of the paradox, and a detailed reconstruction – also the first of its kind – of Allais’s specific normative argument from his numerous but allusive writings. The paper contrasts these interpretations of what the paradox historically represented, with how it generally came to function within decision theory from the late 1970s onwards: that is, as an empirical refutation of the expected utility hypothesis, and more specifically of the condition of von Neumann–Morgenstern independence that underlies that hypothesis. While not denying that this use of the paradox was fruitful in many ways, we propose another use that turns out also to be compatible with an experimental perspective. Following Allais’s hints on ‘the experimental definition of rationality’, this new use consists in letting the experiment itself speak of the rationality or otherwise of the subjects. In the 1970s, a short sequence of papers inspired by Allais implemented original ways of eliciting the reasons guiding the subjects’ choices, and claimed to be able to draw relevant normative consequences from this information. We end by reviewing this forgotten experimental avenue not simply historically, but with a view to recommending it for possible use by decision theorists today.

As stochastic independence is essential to the mathematical development of probability theory, it seems that any foundational work on probability should be able to account for this property. Bayesian decision theory appears to be wanting in this respect. Savage’s postulates on preferences under uncertainty entail a subjective expected utility representation, and this asserts only the existence and uniqueness of a subjective probability measure, regardless of its properties. What is missing is a preference condition corresponding to stochastic independence. To fill this significant gap, the article axiomatizes Bayesian decision theory afresh and proves several representation theorems in this novel framework.

Par risques majeurs, on entend ceux qui s’attachent à des événements dont les conséquences défavorables, pour l’humanité ou pour l’environnement, sont d’une gravité exceptionnelle. On n’ajoutera ni que ces événements sont d’une intensité physique extrême, ni qu’ils surviennent rarement, car ce n’est pas toujours le cas. Seuls des risques majeurs de nature civile seront considérés dans cet ouvrage, et il s'agira, plus limitativement, de risques naturels, comme ceux d’inondation et de submersion marine, illustrés par la tempête Xynthia en 2010, de risques technologiques industriels, comme celui d’une explosion d'usine, illustré par la catastrophe AZF en 2001, et de risques nucléaires, pour autant qu’ils mettent en jeu les dangers de la radioactivité, et qu’illustrent, hors de France, les catastrophes de Three Miles Island (1979), Tchernobyl (1986) et Fukushima (2011), Conçu comme un rapport destiné au Conseil d'analyse économique (CAE) du Premier Ministre français, l'ouvrage comporte une introduction traitant du risque majeur pris en général (section 1). Dans sa partie principale, il aborde les trois risques majeurs qu'il a sélectionnés à travers les prismes successifs de la géographie et de la technologie (section 2), de l’histoire institutionnelle et juridique (section 3), enfin d’un bilan normatif accompagné de recommandations pour l'action publique (section 4). Neuf compléments spécialisés, dus à d'autres auteurs, complètent l'ouvrage. Ils portent sur des aspects technologiques (F. Ménage; A. Quantin et D. Moucoulon; P. Saint-Raymond), juridiques (V. Sanseverino-Godfrin), économiques généraux (C. Grislain-Letrémy et B. Villeneuve; R. Lahidji; J. Percebois; A. Schmitt et S. Spaeter) et financiers (M. Pappalardo) et ils concernent principalement le risque nucléaire. Dans cet ensemble de vaste format, on espère avoir su proposer, non seulement des évaluations et des préconisations destinées aux pouvoirs publics, comme il convenait au projet initial de rapport, mais aussi une synthèse qui soit utilisable par tous ceux - décideurs, scientifiques ou simples observateurs - que préoccupent les questions de risques majeurs.

Élie HALÉVY (1870-1937), philosophe et historien des idées, fut professeur à l'École libre des sciences politiques, l'ancêtre de l'actuel Sciences Po. Comme son autre grand ouvrage, l'Histoire du peuple anglais au XIXe siècle, paru en six tomes de 1913 à 1932, les trois tomes de La formation du radicalisme philosophique, parus en 1901 pour les deux premiers et en 1904 pour le troisième, reflètent pour partie ses enseignements de l'Ecole libre consacrés à l'histoire britannique. Le premier tome, La jeunesse de Bentham 1776-1789, étudie la doctrine utilitariste non seulement chez celui qu'on regarde comme son fondateur principal, Jeremy Bentham, mais aussi chez les nombreux auteurs qui, en Grande-Bretagne et sur le continent, en dessinèrent avant lui les contours. Le deuxième tome, L’évolution de la doctrine utilitaire de 1789 à 1815, montre comment l'utilitarisme revêtit la forme non seulement d'une école de pensée, mais aussi d'un mouvement pour la réforme économique, sociale et politique. Le rôle coordonnateur nouveau de James Mill, ainsi qu'une convergence de vues avec les économistes, qui poussaient dans le sens des réformes, marquèrent notamment cette évolution. Le troisième tome, Le radicalisme philosophique, continue d'étudier la transformation de l'école en mouvement après la fin des guerres napoléoniennes, lorsque celle-ci commence à engranger ses premiers grands succès réformistes. Bentham, James Mill et les autres penseurs utilitaires sont alors réunis sous l'appellation de philosophic radicals. Le terme temporel de l'ouvrage est le Reform Act de 1832, première étape vers la modernisation du système électoral, que la propagande de ce groupe ne contribua pas peu à faire aboutir. Quoique l'ouvrage d'Halévy vaille en premier lieu par l'immense savoir qu'il déploie, et le nombre et l'excellence des citations qu'il propose, il comporte aussi des thèses historiques et philosophiques originales. On peut citer parmi les premières la thèse, qui relie les trois tomes, voulant que l'utilitarisme britannique trouve sa forme achevée dans l'intervention sur la société, lorsqu'il se mue en radicalisme philosophique, et parmi les secondes, la thèse, énoncée au début du premier tome, voulant qu'il existe trois modèles dominants de jonction des intérêts individuels (la fusion sympathique, l'identification naturelle et l'identification artificielle). Une autre grande thèse, à la fois historique et philosophique, affirme en substance que l'économie politique classique serait un département spécialisé de la pensée utilitaire. La question de savoir jusqu'à quel point Smith, Ricardo et Malthus ont pu adhérer au "principe d'utilité" de Bentham est toujours débattue. En même temps que les élucidations apportées à ce principe, elle contribue à expliquer l'intérêt que les historiens de la pensée économique continuent de porter à l'ouvrage. L'auteur a participé à la réédition de La formation du radicalisme philosophique en 1995 par les Presses Universitaires de France (P.U.F.), suivant un projet collectif lancé par Monique Canto-Sperber. Dans le présent article, antérieur à cette réédition, l'auteur tentait de résumer brièvement un livre qui demeure irremplaçable en dépit d'une conception et d'un style quelque peu datés.

The expression "analytic narratives" is used to refer to a range of quite recent studies that lie on the boundaries between history, political science, and economics. These studies purport to explain specific historical events by combining the usual narrative approach of historians with the analytic tools that economists and political scientists draw from formal rational choice theories. Game theory, especially of the extensive form version, is currently prominent among these tools, but there is nothing inevitable about such a technical choice. The chapter explains what analytic narratives are by reviewing the studies of the major book Analytic Narratives (1998), which are concerned with the workings of political institutions broadly speaking, as well as several cases drawn from military and security studies, which form an independent source of the analytic narratives literature. At the same time as it gradually develops a definition of analytic narratives, the chapter investigates how they fulfil one of their main purposes, which is to provide explanations of a better standing than those of traditional history. An important principle that will emerge in the course of the discussion is that narration is called upon not only to provide facts and problems, but also to contribute to the explanation itself. The chapter distinguishes between several expository schemes of analytic narratives according to the way they implement this principle. From all the arguments developed here, it seems clear that the current applications of analytic narratives do not exhaust their potential, and in particular that they deserve the attention of economic historians, if only because they are concerned with microeconomic interactions that are not currently their focus of attention.

Nudge is a concept of policy intervention that originates in Thaler and Sunstein's (2008) popular eponymous book. Following their own hints, we distinguish three properties of nudge interventions: they redirect individual choices by only slightly altering choice conditions (here nudge 1), they use rationality failures instrumentally (here nudge 2), and they alleviate the unfavourable effects of these failures (here nudge 3). We explore each property in semantic detail and show that no entailment relation holds between them. This calls into question the theoretical unity of nudge, as intended by Thaler and Sunstein and most followers. We eventually recommend pursuing each property separately, both in policy research and at the foundational level. We particularly emphasize the need of reconsidering the respective roles of decision theory and behavioural economics to delineate nudge 2 correctly. The paper differs from most of the literature in focusing on the definitional rather than the normative problems of nudge.

This chapter briefly reviews the present state of judgment aggregation theory and tentatively suggests a future direction for that theory. In the review, we start by emphasizing the difference between the doctrinal paradox and the discursive dilemma, two idealized examples which classically serve to motivate the theory, and then proceed to reconstruct it as a brand of logical theory, unlike in some other interpretations, using a single impossibility theorem as a key to its technical development. In the prospective part, having mentioned existing applications to social choice theory and computer science, which we do not discuss here, we consider a potential application to law and economics. This would be based on a deeper exploration of the doctrinal paradox and its relevance to the functioning of collegiate courts. On this topic, legal theorists have provided empirical observations and theoretical hints that judgment aggregation theorists would be in a position to clarify and further elaborate. As a general message, the chapter means to suggest that the future of judgment aggregation theory lies with its applications rather than its internal theoretical development.

This chapter of the Handbook of Utility Theory aims at covering the connections between utility theory and social ethics. The chapter first discusses the philosophical interpretations of utility functions, then explains how social choice theory uses them to represent interpersonal comparisons of welfare in either utilitarian or non-utilitarian representations of social preferences. The chapter also contains an extensive account of John Harsanyi's formal reconstruction of utilitarianism and its developments in the later literature, especially when society faces uncertainty rather than probabilistic risk.

Abstract: Economists are accustomed to distinguishing between a positive and a normative component of their work, a distinction that is peculiar to their field, having no exact counterpart in the other social sciences. The distinction has substantially changed over time, and the different ways of understanding it today are reflective of its history. Our objective is to trace the origins and initial forms of the distinction, from the English classical political economy of the first half of the 19th century to the emergence of welfare economics in the first half of the 20th century. This sequential account will also serve to identify the main representative positions along with the arguments used to support them, and it thus prepares the ground for a discussion that will be less historical and more strictly conceptual. Résumé : Les économistes ont coutume de distinguer entre une composante positive et une composante normative de leurs travaux, ce qui est une singularité de leur discipline, car cette distinction n'a pas de répondant exact dans les autres sciences sociales. Elle a fortement évolué au cours du temps et les différentes manières de la concevoir aujourd'hui en reflètent l'histoire. On se propose ici d'en retracer les origines et les premières formes, de l'économie politique classique anglaise de la première moitié du XIXe siècle jusqu'à l'apparition de l'économie du bien-être dans la première moitié du XXe siècle. Ce parcours séquentiel vise aussi à identifier les positions les plus représentatives et les arguments invoqués pour les soutenir, en préparant ainsi une discussion qui serait moins historique et plus strictement conceptuelle.

This doctoral thesis was prepared in 1975-77 at Ecole des Hautes Etudes en Sciences Sociales, Paris, under the supervision of Prof. Raymond ARON. It was submitted in 1977 in fulfilment of the requirements for a Ph.D. degree in Social Sciences (Doctorat de 3e cycle en sciences sociales). The oral examination (soutenance de thèse) was held in January 1978, with the examination committee consisting of Prof. Aron, Bartoli, Boudon and Brochier. This 250 page unpublished dissertation was the first study ever written in French on Karl Marx's Grundrisse - a 1857-58 manuscript preparatory to Marx's main economic work, Capital. The dissertation reviews Marx's successive projects for his economic work since the 1844 Manuscripts and then proceeds to a presentation and critical discussion of Grundrisse. The proposed interpretation explains the linkage that Marx operated in 1857-58 between Ricardo's economics and Hegel's dialectics, and it emphasizes that Marx was at that time primarily trying to reconstruct the dynamics of capitalism, without going to the stage of developing a formal theory of value and exploitation, as he will eventually do in Capital.

This French article aims at analyzing the Ricardian problem of an "invariable standard of value" in Ricardo's own terms. It is argued that Ricardo's commentators and modern followers have changed these terms significantly. The problem actually branches into two subproblems, i.e., that of "invariability" strictly, and that of "neutrality with respect to distribution". These subproblems do not matter to Ricardo to the same extent. He regards the latter (in various formulations recapitulated here) as a complication of the former, which is the crucial one in his search for a "good" standard. This exemplifies precisely how Ricardo could theoretically focus on the production side of the economy at the expense of the distribution side. With these conclusions at hand, the paper can be critical of Marx's and Sraffa's interpretations of the Ricardian problem of the standard: respectively, because Marx's is simply incorrect, and because Sraffa's solved a problem that was unrelated to the original one in Ricardo.

This paper is concerned with representations of belief by means of nonadditive probabilities of the Dempster-Shafer (DS) type. After surveying some foundational issues and results in the D.S. theory, including Suppes's related contributions, the paper proceeds to analyze the connection of the D.S. theory with some of the work currently pursued in epistemic logic. A preliminary investigation of the modal logic of belief functions à la Shafer is made. There it is shown that the Alchourrron-Gärdenfors-Makinson (A.G.M.) logic of belief change is closely related to the D.S. theory. The final section compares the critique of Bayesianism which underlies the present paper with some important objections raised by Suppes against this doctrine.

We investigate the conflict between the ex ante and ex post criteria of social welfare in a new framework of individual and social decisions, which distinguishes between two sources of uncertainty, here interpreted as an objective and a subjective source respectively. This framework makes it possible to endow the individuals and society not only with ex ante and ex post preferences, as is usually done, but also with interim preferences of two kinds, and correspondingly, to introduce interim forms of the Pareto principle. After characterizing the ex ante and ex post criteria, we present a first solution to their conflict that extends the former as much possible in the direction of the latter. Then, we present a second solution, which goes in the opposite direction, and is also maximally assertive. Both solutions translate the assumed Pareto conditions into weighted additive utility representations, and both attribute to the individuals common probability values on the objective source of uncertainty, and different probability values on the subjective source. We discuss these solutions in terms of two conceptual arguments, i.e., the by now classic spurious unanimity argument and a novel informational argument labelled complementary ignorance. The paper complies with the standard economic methodology of basing probability and utility representations on preference axioms, but for the sake of completeness, also considers a construal of objective uncertainty based on the assumption of an exogeneously given probability measure. JEL classification: D70; D81.

Stochastic independence has a complex status in probability theory. It is not part of the definition of a probability measure, but it is nonetheless an essential property for the mathematical development of this theory. Bayesian decision theorists such as Savage can be criticized for being silent about stochastic independence. From their current preference axioms, they can derive no more than the definitional properties of a probability measure. In a new framework of twofold uncertainty, we introduce preference axioms that entail not only these definitional properties, but also the stochastic independence of the two sources of uncertainty. This goes some way towards filling a curious lacuna in Bayesian decision theory.

This monographic chapter explains how expected utility (EU) theory arose in von Neumann and Morgenstern, how it was called into question by Allais and others, and how it gave way to non-EU theories, at least among the specialized quarters of decion theory. I organize the narrative around the idea that the successive theoretical moves amounted to resolving Duhem-Quine underdetermination problems, so they can be assessed in terms of the philosophical recommendations made to overcome these problems. I actually follow Duhem's recommendation, which was essentially to rely on the passing of time to make many experiments and arguments available, and evebntually strike a balance between competing theories on the basis of this improved knowledge. Although Duhem's solution seems disappointingly vague, relying as it does on "bon sens" to bring an end to the temporal process, I do not think there is any better one in the philosophical literature, and I apply it here for what it is worth. In this perspective, EU theorists were justified in resisting the first attempts at refuting their theory, including Allais's in the 50s, but they would have lacked "bon sens" in not acknowledging their defeat in the 80s, after the long process of pros and cons had sufficiently matured. This primary Duhemian theme is actually combined with a secondary theme - normativity. I suggest that EU theory was normative at its very beginning and has remained so all along, and I express dissatisfaction with the orthodox view that it could be treated as a straightforward descriptive theory for purposes of prediction and scientific test. This view is usually accompanied with a faulty historical reconstruction, according to which EU theorists initially formulated the VNM axioms descriptively and retreated to a normative construal once they fell threatened by empirical refutation. From my historical study, things did not evolve in this way, and the theory was both proposed and rebutted on the basis of normative arguments already in the 1950s. The ensuing, major problem was to make choice experiments compatible with this inherently normative feature of theory. Compability was obtained in some experiments, but implicitly and somewhat confusingly, for instance by excluding overtly incoherent subjects or by creating strong incentives for the subjects to reflect on the questions and provide answers they would be able to defend. I also claim that Allais had an intuition of how to combine testability and normativity, unlike most later experimenters, and that it would have been more fruitful to work from his intuition than to make choice experiments of the naively empirical style that flourished after him. In sum, it can be said that the underdetermination process accompanying EUT was resolved in a Duhemian way, but this was not without major inefficiencies. To embody explicit rationality considerations into experimental schemes right from the beginning would have limited the scope of empirical research, avoided wasting resources to get only minor findings, and speeded up the Duhemian process of groping towards a choice among competing theories.

We reexamine some of the classic problems connected with the use of cardinal utility functions in decision theory, and discuss Patrick Suppes's contributions to this field in light of a reinterpretation we propose for these problems. We analytically decompose the doctrine of ordinalism, which only accepts ordinal utility functions, and distinguish between several doctrines of cardinalism, depending on what components of ordinalism they specifically reject. We identify Suppes's doctrine with the major deviation from ordinalism that conceives of utility functions as representing preference differences, while being non- etheless empirically related to choices. We highlight the originality, promises and limits of this choice-based cardinalism.

A reply to Fransisco Vergara's attack on Halévy's interpretation of Bentham in Philosophy, January, 1998. Vergara had argued that Halévy was mistaken in interpreting Bentham's principle of utility as a psychological law as well as the ethical greatest happiness principle. Mongin and Sigot show that Halévy correctly interpreted Bentham's texts and that the psychological law is necessary to Bentham's legal theory, economics and politics; they also argue that it is incorrect to confuse the principle of utility with a theory of universal selfishness, and that this misunderstanding underlies Vergara's mistaken picture of both Halévy and Bentham.

This collection of papers in epistemic logic is oriented towards applications to game theory and individual decision theory. Most of these papers were presented at the inaugural conference of the LOFT (Logic for the Theory and Games and Decisions) conference series, which took place in 1994 in Marseille. Among the notions dealt with are those of common knowledge and common belief, infinite hierarchies of beliefs and belief spaces, logical omniscience, positive and negative introspection, backward induction and rationalizable equilibria in game theory.