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Positive economics focuses on the description, quantification and explanation of economic phenomena, [1] while normative economics discusses prescriptions for what actions individuals or societies should or should not take. [2] The positive-normative distinction is related to the subjective-objective and fact-value distinctions in philosophy. [3]
Statements of value (normative or prescriptive statements), which encompass ethics and aesthetics, and are studied via axiology. This barrier between fact and value, as construed in epistemology, implies it is impossible to derive ethical claims from factual arguments, or to defend the former using the latter.
Fact–value distinction - Wikipedia
Behavioral game theory is a primarily positive theory rather than a normative theory. [14] A positive theory seeks to describe phenomena rather than prescribe a correct action. Positive theories must be testable and can be proven true or false. A normative theory is subjective and based on opinions. Because of this, normative theories cannot be ...
On the other hand, "vegetables contain a relatively high proportion of vitamins", and "a common consequence of sacrificing liberty for security is a loss of both" are positive claims. Whether a statement is philosophically normative is logically independent of whether it is verified, verifiable, or popularly held.
Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economic theory. [1] [2] Behavioral economics is primarily concerned with the bounds of rationality of economic ...
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Ethics is a closely related field focusing primarily on normative concepts about which behavior is right, whereas value theory explores evaluative concepts about what is good. In economics, theories of value are frameworks to assess and explain the economic value of commodities. Sociology and anthropology examine values as aspects of societies ...