Model hagiography: A reply to Johnson and Munger on probability, philosophy and transcendental argumentation

Jon Roffe
Finance and Society, 2016, 2(2): 217-24


In his review of my recent book, Abstract Market Theory, Johnson mistakes my investigation into the conditions and limits of probabilistic reasoning as a rejection of its sense and utility. The same misunderstanding also appears in a review by Munger published recently. In both cases this leads to a skewed and reductive understanding of my reconception of the relationship between price and value. In this response, I present an outline of the philosophical goals of Abstract Market Theory. My intent is not just to show that these reviews are incorrect in their presentation of my argument, but to also indicate why a philosophical perspective remains indispensable for our understanding of the market.

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