My interest in statistics stems from my work on the axiomatization of bounded rationality as a formal representation of actual decision-making. The neoclassic paradigm of rational man is based on the subjective utility theory developed by the famous statistician, Savage (1950). Thus, the economic modeling of behavior has an essential connection with the fundamental theories of probability in statistics.
Currently, I pursue two active lines of research: the application of Markov chain models to designing CUSUM control charts for correlated binary data; and, theorizing the science of fast and frugal heuristics through an analytical approach.
Mousavi, Shabnam; Kheirandish, Reza (2008). "Towards Formalizing the Observed Behavior of Choice," Proceedings of the Southeast Decision Science Institute, SEDSCI 2008.
Abstract: Formulating the problem of compound lotteries, which marks the origination of expected utility theory (EUT), has generated a stream of formal work in the field of economics decision making. Where subjective EUT determines the rational choice...
Mousavi, Shabnam (2003). "Toward a Transactional Theory of Decision Makig: Creative Rationality as Functional Coordination in Context," with Jim Garrison, Journal of Economic Methodology, 10 (2), 131-56.
This paper poses a Deweyan challenge to both the neoclassical framework of rational choice and models of bounded rationality and deliberation, especially the procedural theory of rationality advanced by Herbert Simon. We demonstrate how modern theories...