Synthese

, Volume 191, Issue 11, pp 2499–2511

To specialize or to innovate? An internalist account of pluralistic ignorance in economics

Article

Abstract

Academic and corporate research departments alike face a crucial dilemma: to exploit known frameworks or to explore new ones; to specialize or to innovate? Here I show that these two conflicting epistemic desiderata are sufficient to explain pluralistic ignorance and its boom-and-bust-like dynamics, exemplified in the collapse of the efficient markets hypothesis as a modern risk management paradigm in 2007. The internalist nature of this result, together with its robustness, suggests that pluralistic ignorance is an inherent feature rather than a threat to the rationality of epistemic communities.

Keywords

Pluralistic ignorance Exploitation Exploration  Thomas Kuhn Scientific revolutions Economics 

Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.Tilburg Center for Logic and Philosophy of Science (TiLPS)Tilburg UniversityTilburgThe Netherlands

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