03 14 18: Lecture explains the flaws of Friedman's As-If methodology, which has blinded economists to the realities of human behavior. The as-if approach is explained and compared with a realist approach. Expected Utility and Prospect Theory are application of economists methodology, while study of real human behavior leads to entirely different results.
On the Pseudo-Scientific Nature of Friedman’s as if Methodology - Article explaining why Friedman's methodology is wrong
AM2L07 Methodology: Prospect Theory & Psychology Protocols - : Lecture explains the flaws of Friedman's As-If methodology, which has blinded economists to the realities of human behavior. The as-if approach is explained and compared with a realist approach.