We discuss the goals and means of positive decision theory and the implications for how to do decision theory. We argue that the goal of positive economic theory generally is to provide predictions and understanding and that representation theorems and other results of decision theory should be...

My own behavior baffles me. For I find myself not doing what I really want to do but doing what I really loathe.ʺ Saint Paul What behavior can be explained using the hypothesis that the agent faces temptation but is otherwise a standard rational agentʺ? In earlier work, GulPesendorfer [2001]...