Frank Ramsey (mathematician)
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Frank Plumpton Ramsey (; 22 February 1903 – 19 January 1930) was a
British British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories and Crown Dependencies. * British national identity, the characteristics of British people and culture ...
philosopher Philosophy ('love of wisdom' in Ancient Greek) is a systematic study of general and fundamental questions concerning topics like existence, reason, knowledge, Value (ethics and social sciences), value, mind, and language. It is a rational an ...
,
mathematician A mathematician is someone who uses an extensive knowledge of mathematics in their work, typically to solve mathematical problems. Mathematicians are concerned with numbers, data, quantity, mathematical structure, structure, space, Mathematica ...
, and
economist An economist is a professional and practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
who made major contributions to all three fields before his death at the age of 26. He was a close friend of
Ludwig Wittgenstein Ludwig Josef Johann Wittgenstein ( ; ; 26 April 1889 – 29 April 1951) was an Austrian philosopher who worked primarily in logic, the philosophy of mathematics, the philosophy of mind, and the philosophy of language. From 1929 to 1947, Witt ...
and, as an undergraduate, translated Wittgenstein's ''
Tractatus Logico-Philosophicus The ''Tractatus Logico-Philosophicus'' (widely abbreviated and Citation, cited as TLP) is the only book-length philosophical work by the Austrian philosopher Ludwig Wittgenstein that was published during his lifetime. The project had a broad goal ...
'' into English. He was also influential in persuading Wittgenstein to return to
philosophy Philosophy ('love of wisdom' in Ancient Greek) is a systematic study of general and fundamental questions concerning topics like existence, reason, knowledge, Value (ethics and social sciences), value, mind, and language. It is a rational an ...
and Cambridge. Like Wittgenstein, he was a member of the Cambridge Apostles, the secret intellectual society, from 1921.


Life

Ramsey was born on 22 February 1903 in
Cambridge Cambridge ( ) is a List of cities in the United Kingdom, city and non-metropolitan district in the county of Cambridgeshire, England. It is the county town of Cambridgeshire and is located on the River Cam, north of London. As of the 2021 Unit ...
where his father Arthur Stanley Ramsey (1867–1954), also a mathematician, was President of Magdalene College. His mother was Mary Agnes Stanley (1875–1927). He was the eldest of two brothers and two sisters, and his brother Michael Ramsey, the only one of the four siblings who was to remain Christian, later became
Archbishop of Canterbury The archbishop of Canterbury is the senior bishop and a principal leader of the Church of England, the Primus inter pares, ceremonial head of the worldwide Anglican Communion and the bishop of the diocese of Canterbury. The first archbishop ...
. He entered
Winchester College Winchester College is an English Public school (United Kingdom), public school (a long-established fee-charging boarding school for pupils aged 13–18) with some provision for day school, day attendees, in Winchester, Hampshire, England. It wa ...
in 1915 and later returned to Cambridge to study mathematics at Trinity College. There he became a student of
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes ( ; 5 June 1883 – 21 April 1946), was an English economist and philosopher whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originall ...
and an active member in the Apostles. In 1923, he received his bachelor's degree in mathematics, passing his examinations with the result of first class with distinction, and was named Senior Wrangler (top of his class). Easy-going, simple and modest, Ramsey had many interests besides his mathematical and scientific studies. Even as a teenager, Ramsey exhibited both a profound ability and, as attested by his brother, an extremely diverse range of interests: In 1923, Ramsey was befriended by Geoffrey and Margaret Pyke, then on the point of founding the Malting House School in Cambridge; the Pykes took Ramsey into their family, taking him on holiday and asking him to be the godfather of their young son. Margaret found herself to be the object of his affection, Ramsey recording in his diary:
One afternoon I went out alone with her on Lake Orta and became filled with desire and we came back and lay on two beds side by side she reading, I pretending to, but with an awful conflict in my mind. After about an hour I said (she was wearing her horn spectacles and looking superlatively beautiful in the Burne Jones style) 'Margaret will you fuck with me?'
Margaret wanted time to consider his proposition and thus began an uncomfortable dance between them, which contributed to Ramsey's depressive moods in early 1924; as a result, he travelled to Vienna for
psychoanalysis PsychoanalysisFrom Greek language, Greek: and is a set of theories and techniques of research to discover unconscious mind, unconscious processes and their influence on conscious mind, conscious thought, emotion and behaviour. Based on The Inte ...
. Like many of his contemporaries, including his Viennese flatmate and fellow Apostle Lionel Penrose (also in analysis with Siegfried Bernfeld), Ramsey was intellectually interested in psychoanalysis. Ramsey's analyst was Theodor Reik, a disciple of Freud. As one of the justifications for undertaking the therapy, he asserted in a letter to his mother that unconscious impulses might affect even a mathematician's work. While in Vienna, he made a trip to Puchberg in order to visit Wittgenstein, was befriended by the Wittgenstein family and visited A.S. Neill's experimental school four hours from Vienna at Sonntagsberg. In the summer of 1924, he continued his analysis by joining Reik at Dobbiaco (in
South Tyrol South Tyrol ( , ; ; ), officially the Autonomous Province of Bolzano – South Tyrol, is an autonomous administrative division, autonomous provinces of Italy, province in northern Italy. Together with Trentino, South Tyrol forms the autonomo ...
), where a fellow analysand was
Lewis Namier Sir Lewis Bernstein Namier (; 27 June 1888 – 19 August 1960) was a British historian of Polish-Jewish background. His best-known works were '' The Structure of Politics at the Accession of George III'' (1929), ''England in the Age of the Ame ...
. Ramsey returned to England in October 1924; with
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes ( ; 5 June 1883 – 21 April 1946), was an English economist and philosopher whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originall ...
's support, he became a fellow of
King's College, Cambridge King's College, formally The King's College of Our Lady and Saint Nicholas in Cambridge, is a List of colleges of the University of Cambridge, constituent college of the University of Cambridge. The college lies beside the River Cam and faces ...
. He joined a Psychoanalysis Group in Cambridge with fellow members Arthur Tansley, Lionel Penrose,
Harold Jeffreys Sir Harold Jeffreys, FRS (22 April 1891 – 18 March 1989) was a British geophysicist who made significant contributions to mathematics and statistics. His book, ''Theory of Probability'', which was first published in 1939, played an importan ...
, John Rickman and
James Strachey James Beaumont Strachey (; 26 September 1887, London25 April 1967, High Wycombe) of the Strachey family was a British psychoanalyst, and, with his wife Alix, translator of Sigmund Freud into English. He is perhaps best known as the general ed ...
, the qualification for membership of which was a completed psychoanalysis. Ramsey married Lettice Baker in August 1925, the wedding taking place in a Register Office since Ramsey was, as his wife described him, a 'militant atheist'. The marriage produced two daughters. After Ramsey's death, Lettice Ramsey opened a photography studio in Cambridge with photographer Helen Muspratt. Despite his
atheism Atheism, in the broadest sense, is an absence of belief in the Existence of God, existence of Deity, deities. Less broadly, atheism is a rejection of the belief that any deities exist. In an even narrower sense, atheism is specifically the ...
, Ramsey was "quite tolerant" towards his brother when the latter decided to become a priest in the
Church of England The Church of England (C of E) is the State religion#State churches, established List of Christian denominations, Christian church in England and the Crown Dependencies. It is the mother church of the Anglicanism, Anglican Christian tradition, ...
. In 1926 he became a university lecturer in mathematics and later a Director of Studies in Mathematics at King's College. The Vienna Circle manifesto (1929) lists three of his publications in a bibliography of closely related authors.


Ramsey and Wittgenstein

When I. A. Richards and C. K. Ogden, both Fellows of Magdalene, first met Ramsey, he expressed his interest in learning German. According to Richards, he mastered the language "in almost hardly over a week", although other sources show he had taken one year of German in school. Ramsey was then able, at the age of 19, to make the first draft of the translation of the German text of
Ludwig Wittgenstein Ludwig Josef Johann Wittgenstein ( ; ; 26 April 1889 – 29 April 1951) was an Austrian philosopher who worked primarily in logic, the philosophy of mathematics, the philosophy of mind, and the philosophy of language. From 1929 to 1947, Witt ...
's ''
Tractatus Logico-Philosophicus The ''Tractatus Logico-Philosophicus'' (widely abbreviated and Citation, cited as TLP) is the only book-length philosophical work by the Austrian philosopher Ludwig Wittgenstein that was published during his lifetime. The project had a broad goal ...
''. Ramsey was impressed by Wittgenstein's work and after graduating as Senior Wrangler in the Mathematical
Tripos TRIPOS (''TRIvial Portable Operating System'') is a computer operating system. Development started in 1976 at the Computer Laboratory of Cambridge University and it was headed by Dr. Martin Richards. The first version appeared in January 1978 a ...
of 1923 he made a journey to
Austria Austria, formally the Republic of Austria, is a landlocked country in Central Europe, lying in the Eastern Alps. It is a federation of nine Federal states of Austria, states, of which the capital Vienna is the List of largest cities in Aust ...
to visit Wittgenstein, at that time teaching in a primary school in the small community of Puchberg am Schneeberg. For two weeks Ramsey discussed the difficulties he was facing in understanding the ''Tractatus''. Wittgenstein made some corrections to the English translation in Ramsey's copy and some annotations and changes to the German text that subsequently appeared in the second edition in 1933. Ramsey and
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes ( ; 5 June 1883 – 21 April 1946), was an English economist and philosopher whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originall ...
cooperated to try to bring Wittgenstein back to Cambridge (he had been a student there before World War I). Once Wittgenstein had returned to Cambridge, Ramsey became his nominal supervisor. Wittgenstein submitted the ''Tractatus Logico-Philosophicus'' as his doctoral thesis. G.E. Moore and
Bertrand Russell Bertrand Arthur William Russell, 3rd Earl Russell, (18 May 1872 – 2 February 1970) was a British philosopher, logician, mathematician, and public intellectual. He had influence on mathematics, logic, set theory, and various areas of analytic ...
acted as examiners. Later, the three of them arranged financial aid for Wittgenstein to help him continue his research work. In 1929 Ramsey and Wittgenstein regularly discussed issues in mathematics and philosophy with
Piero Sraffa Piero Sraffa Fellow of the British Academy, FBA (5 August 1898 – 3 September 1983) was an influential Italian Political economy, political economist who served as lecturer of economics at the University of Cambridge. His book ''Production of Co ...
, an Italian economist who had been brought to Cambridge by Keynes after Sraffa had aroused
Benito Mussolini Benito Amilcare Andrea Mussolini (29 July 188328 April 1945) was an Italian politician and journalist who, upon assuming office as Prime Minister of Italy, Prime Minister, became the dictator of Fascist Italy from the March on Rome in 1922 un ...
's ire by publishing an article critical of the Fascist regime in the ''
Manchester Guardian ''The Guardian'' is a British daily newspaper. It was founded in Manchester in 1821 as ''The Manchester Guardian'' and changed its name in 1959, followed by a move to London. Along with its sister paper, ''The Guardian Weekly'', ''The Guardi ...
''. The contributions of Ramsey to these conversations were acknowledged by both Sraffa and Wittgenstein in their later work. In the introduction to ''
Philosophical Investigations ''Philosophical Investigations'' () is a work by the philosopher Ludwig Wittgenstein, published posthumously in 1953. ''Philosophical Investigations'' is divided into two parts, consisting of what Wittgenstein calls, in the preface, ''Bemer ...
'' Wittgenstein credits Ramsey's criticism of the ''Tractatus'' in the "interminable conversations" they had as having helped him realise "grave mistakes" within the work.


Early death

Suffering chronic
liver The liver is a major metabolic organ (anatomy), organ exclusively found in vertebrates, which performs many essential biological Function (biology), functions such as detoxification of the organism, and the Protein biosynthesis, synthesis of var ...
problems, Ramsey developed
jaundice Jaundice, also known as icterus, is a yellowish or, less frequently, greenish pigmentation of the skin and sclera due to high bilirubin levels. Jaundice in adults is typically a sign indicating the presence of underlying diseases involving ...
after an abdominal operation and died on 19 January 1930 at Guy's Hospital in London at the age of 26. There is a suspicion that the cause of his death might be an undiagnosed
leptospirosis Leptospirosis is a blood infection caused by the bacterium ''Leptospira'' that can infect humans, dogs, rodents and many other wild and domesticated animals. Signs and symptoms can range from none to mild (headaches, Myalgia, muscle pains, a ...
with which Ramsey, an avid swimmer, could have become infected while swimming in the
Cam Cam or CAM may refer to: Science and technology * Cam (mechanism), a mechanical linkage which translates motion * Camshaft, a shaft with a cam * Camera or webcam, a device that records images or video In computing * Computer-aided manufacturin ...
. He is buried in the Parish of the Ascension Burial Ground in Cambridge; his parents are buried in the same plot. Ramsey's notes and manuscripts were acquired by
Nicholas Rescher Nicholas Rescher (; ; 15 July 1928 – 5 January 2024) was a German-born American philosopher, polymath, and author, who was a professor of philosophy at the University of Pittsburgh from 1961. He was chairman of the Center for Philosophy of Sc ...
for the Archives of Scientific Philosophy at the
University of Pittsburgh The University of Pittsburgh (Pitt) is a Commonwealth System of Higher Education, state-related research university in Pittsburgh, Pennsylvania, United States. The university is composed of seventeen undergraduate and graduate schools and colle ...
. This collection contains only a few letters but a great many drafts of papers and book chapters, some still unpublished. Other papers, including his diary and letters and memoirs by his widow Lettice Ramsey and his father, are held in the Modern Archives, King's College, Cambridge.


Work


Mathematical logic

One of the
theorem In mathematics and formal logic, a theorem is a statement (logic), statement that has been Mathematical proof, proven, or can be proven. The ''proof'' of a theorem is a logical argument that uses the inference rules of a deductive system to esta ...
s proved by Ramsey in his 1928 paper ''On a Problem of Formal Logic'' now bears his name ( Ramsey's theorem). While this theorem is the work Ramsey is probably best remembered for, he proved it only in passing, as a minor lemma along the way to his true goal in the paper, solving a special case of the decision problem for first-order logic, namely the decidability of what is now called the Bernays–Schönfinkel–Ramsey class of
first-order logic First-order logic, also called predicate logic, predicate calculus, or quantificational logic, is a collection of formal systems used in mathematics, philosophy, linguistics, and computer science. First-order logic uses quantified variables over ...
, as well as a characterisation of the spectrum of sentences in this fragment of logic.
Alonzo Church Alonzo Church (June 14, 1903 – August 11, 1995) was an American computer scientist, mathematician, logician, and philosopher who made major contributions to mathematical logic and the foundations of theoretical computer science. He is bes ...
would go on to show that the general case of the decision problem for first-order logic is unsolvable and that first-order logic is undecidable (see Church's theorem). A great amount of later work in mathematics was fruitfully developed out of the ostensibly minor lemma used by Ramsey in his decidability proof: this lemma turned out to be an important early result in
combinatorics Combinatorics is an area of mathematics primarily concerned with counting, both as a means and as an end to obtaining results, and certain properties of finite structures. It is closely related to many other areas of mathematics and has many ...
, supporting the idea that within some sufficiently large systems, however disordered, there must be some order. So fruitful, in fact, was Ramsey's theorem that today there is an entire branch of mathematics, known as
Ramsey theory Ramsey theory, named after the British mathematician and philosopher Frank P. Ramsey, is a branch of the mathematical field of combinatorics that focuses on the appearance of order in a substructure given a structure of a known size. Problems in R ...
, which is dedicated to studying similar results. In 1926, Ramsey proposed a simplification of the Theory of Types developed by
Bertrand Russell Bertrand Arthur William Russell, 3rd Earl Russell, (18 May 1872 – 2 February 1970) was a British philosopher, logician, mathematician, and public intellectual. He had influence on mathematics, logic, set theory, and various areas of analytic ...
and
Alfred North Whitehead Alfred North Whitehead (15 February 1861 – 30 December 1947) was an English mathematician and philosopher. He created the philosophical school known as process philosophy, which has been applied in a wide variety of disciplines, inclu ...
in their ''
Principia Mathematica The ''Principia Mathematica'' (often abbreviated ''PM'') is a three-volume work on the foundations of mathematics written by the mathematician–philosophers Alfred North Whitehead and Bertrand Russell and published in 1910, 1912, and 1 ...
''. The resulting theory is known today as Theory of Simple Type (TST) or Simple Type Theory. Ramsey observed that a hierarchy of types was sufficient to deal with mathematical
paradox A paradox is a logically self-contradictory statement or a statement that runs contrary to one's expectation. It is a statement that, despite apparently valid reasoning from true or apparently true premises, leads to a seemingly self-contradictor ...
es, so removed Russell's and Whitehead's ramified hierarchy, which was meant to elude semantic paradoxes. Ramsey's version of the theory is the one considered by
Kurt Gödel Kurt Friedrich Gödel ( ; ; April 28, 1906 – January 14, 1978) was a logician, mathematician, and philosopher. Considered along with Aristotle and Gottlob Frege to be one of the most significant logicians in history, Gödel profoundly ...
in the original proof of his first incompleteness theorem. Ramsey's Theory of Simple Types was further simplified by
Willard van Orman Quine Willard Van Orman Quine ( ; known to his friends as "Van"; June 25, 1908 – December 25, 2000) was an American philosopher and logician in the analytic tradition, recognized as "one of the most influential philosophers of the twentieth century" ...
in his New Foundations for
set theory Set theory is the branch of mathematical logic that studies Set (mathematics), sets, which can be informally described as collections of objects. Although objects of any kind can be collected into a set, set theory – as a branch of mathema ...
, in which any explicit reference to types is eliminated from the language of the theory.


Philosophy

His main philosophical works included ''Universals'' (1925), ''Facts and Propositions'' (1927) (which proposed a
redundancy theory of truth According to the redundancy theory of truth (also known as the disquotational theory of truth), asserting that a statement is true is completely equivalent to asserting the statement itself. For example, asserting the sentence Snow is white' is tru ...
), ''Universals of Law and of Fact'' (1928), ''Knowledge'' (1929), ''Theories'' (1929), ''On Truth'' (1929), ''Causal Qualities'' (1929), and ''General Propositions and Causality'' (1929). Ramsey was perhaps the first to propose a reliabilist theory of knowledge. He also produced what philosopher Alan Hájek has described as an "enormously influential version of the subjective interpretation of probability". His thought in this area was outlined in the paper '' Truth and Probability'' (discussed below) which was written in 1926 but first published posthumously in 1931.


Economics

Keynes and Pigou encouraged Ramsey to work on economics as "From a very early age, about sixteen I think, his precocious mind was intensely interested in economic problems" (Keynes, 1933). Ramsey responded to Keynes's urging by writing three papers in economic theory all of which were of fundamental importance, though it was many years before they received their proper recognition by the community of economists. Ramsey's three papers, described below in detail, were on
subjective probability Bayesian probability ( or ) is an interpretation of the concept of probability, in which, instead of frequency or propensity of some phenomenon, probability is interpreted as reasonable expectation representing a state of knowledge or as quanti ...
and
utility In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. * In a normative context, utility refers to a goal or objective that we wish ...
(1926),
optimal tax Optimal tax theory or the theory of optimal taxation is the study of designing and implementing a tax that maximises a social welfare function subject to economic constraints. The social welfare function used is typically a function of individuals ...
ation (1927) and optimal growth in a one-sector economy (1928). The economist
Paul Samuelson Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...
described them in 1970 as "three great legacies – legacies that were for the most part mere by-products of his major interest in the foundations of mathematics and knowledge." Ramsey's economic views were
socialist Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
.


''Truth and Probability''

In '' A Treatise on Probability'' (1921), Keynes argued against the subjective approach in epistemic probabilities. For Keynes, the subjectivity of probabilities does not matter as much, as for him there is an objective relationship between knowledge and probabilities, as knowledge is disembodied and not personal. Ramsey disagreed with this approach. In his article "Truth and Probability" (1926), he argued that there is a difference between the notions of
probability Probability is a branch of mathematics and statistics concerning events and numerical descriptions of how likely they are to occur. The probability of an event is a number between 0 and 1; the larger the probability, the more likely an e ...
in
physics Physics is the scientific study of matter, its Elementary particle, fundamental constituents, its motion and behavior through space and time, and the related entities of energy and force. "Physical science is that department of knowledge whi ...
and in
logic Logic is the study of correct reasoning. It includes both formal and informal logic. Formal logic is the study of deductively valid inferences or logical truths. It examines how conclusions follow from premises based on the structure o ...
.F.P. Ramsey (1926) "Truth and Probability", in Ramsey, 1931, '' The Foundations of Mathematics and other Logical Essays'', Ch. VII, pp.156-198, edited by R.B. Braithwaite, London: Kegan, Paul, Trench, Trubner & Co., New York: Harcourt, Brace and Company '
1999 electronic edition
For Ramsey, probability is not related to a disembodied body of knowledge but is related to the knowledge that each individual possesses alone. Thus personal beliefs that are formulated by this individual knowledge govern probabilities, leading to the notions of
subjective probability Bayesian probability ( or ) is an interpretation of the concept of probability, in which, instead of frequency or propensity of some phenomenon, probability is interpreted as reasonable expectation representing a state of knowledge or as quanti ...
and
Bayesian probability Bayesian probability ( or ) is an interpretation of the concept of probability, in which, instead of frequency or propensity of some phenomenon, probability is interpreted as reasonable expectation representing a state of knowledge or as quant ...
. Consequently, subjective probabilities can be inferred by observing actions that reflect individuals' personal beliefs. Ramsey argued that the degree of probability that an individual attaches to a particular outcome can be measured by finding what
odds In probability theory, odds provide a measure of the probability of a particular outcome. Odds are commonly used in gambling and statistics. For example for an event that is 40% probable, one could say that the odds are or When gambling, o ...
the individual would accept when betting on that outcome. Ramsey suggested a way of deriving a consistent theory of choice under uncertainty that could isolate beliefs from preferences while still maintaining subjective probabilities, although Ramsey later noted that "taking the whole field of chance events no generalizations about them are possible (consider e.g. infectious diseases, dactyls in hexameters, deaths from horse kicks, births of great men)."F.P. Ramsey (1928) "Further Considerations", in Ramsey, 1931, '' The Foundations of Mathematics and other Logical Essays'', Ch. VIII, p.210,211, edited by R.B. Braithwaite, London: Kegan, Paul, Trench, Trubner & Co., New York: Harcourt, Brace and Company '
1999 electronic edition
Despite the fact that Ramsey's work on probabilities was of great importance, no one paid any attention to it until the publication of '' Theory of Games and Economic Behavior'' by
John von Neumann John von Neumann ( ; ; December 28, 1903 – February 8, 1957) was a Hungarian and American mathematician, physicist, computer scientist and engineer. Von Neumann had perhaps the widest coverage of any mathematician of his time, in ...
and
Oskar Morgenstern Oskar Morgenstern (; January 24, 1902 – July 26, 1977) was a German-born economist. In collaboration with mathematician John von Neumann, he is credited with founding the field of game theory and its application to social sciences and strategic ...
in 1944 (1947 2nd ed.), although after Ramsey's death, an approach to probability similar to his was developed independently by the Italian
mathematician A mathematician is someone who uses an extensive knowledge of mathematics in their work, typically to solve mathematical problems. Mathematicians are concerned with numbers, data, quantity, mathematical structure, structure, space, Mathematica ...
Bruno de Finetti Bruno de Finetti (13 June 1906 – 20 July 1985) was an Italian probabilist statistician and actuary, noted for the "operational subjective" conception of probability. The classic exposition of his distinctive theory is the 1937 , which discuss ...
.


''A Contribution to the Theory of Taxation''

This paper, first published in 1927 has been described by Joseph E. Stiglitz as "a landmark in the economics of public finance" In the same, Ramsey contributed to
economic theory Economics () is a behavioral science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...
the elegant concept of Ramsey pricing. This is applicable in situations where a (regulated)
monopolist A monopoly (from Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce a particular thing, a lack of viable s ...
wants to maximise consumer surplus whilst at the same time ensuring that its costs are adequately covered. This is achieved by setting the price such that the markup over marginal cost is inversely proportional to the price elasticity of demand for that good. Ramsey poses the question that is to be solved at the beginning of the article: "A given revenue is to be raised by proportionate taxes on some or all uses of income, the taxes on different uses being possibly at different rates; how much should these rates be adjusted in order that the decrement of utility may be a minimum?" The problem was suggested to him by the economist Arthur Pigou and the paper was Ramsey's answer to the problem.


''A Mathematical Theory of Saving''

Described by Partha Dasgupta, in a ''
Stanford Encyclopedia of Philosophy The ''Stanford Encyclopedia of Philosophy'' (''SEP'') is a freely available online philosophy resource published and maintained by Stanford University, encompassing both an online encyclopedia of philosophy and peer-reviewed original publication ...
'' entry devoted to it, as "one of the dozen or so most influential papers of the 20th century" in the field of academic economics, "A Mathematical Theory of Saving" was originally published in ''
The Economic Journal ''The Economic Journal'' is a peer-reviewed academic journal of economics published on behalf of the Royal Economic Society by Oxford University Press. The journal was established in 1891 and publishes papers from all areas of economics.The edito ...
'' in 1928. It employed, as
Paul Samuelson Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...
described it, "a strategically beautiful application of the
calculus of variations The calculus of variations (or variational calculus) is a field of mathematical analysis that uses variations, which are small changes in Function (mathematics), functions and functional (mathematics), functionals, to find maxima and minima of f ...
" to determine the optimal amount an economy should invest rather than consume so as to maximise future
utility In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. * In a normative context, utility refers to a goal or objective that we wish ...
, or as Ramsey put it, "How much of its income should a nation save?" Keynes described the article as "one of the most remarkable contributions to
mathematical economics Mathematical economics is the application of Mathematics, mathematical methods to represent theories and analyze problems in economics. Often, these Applied mathematics#Economics, applied methods are beyond simple geometry, and may include diff ...
ever made, both in respect of the intrinsic importance and difficulty of its subject, the power and elegance of the technical methods employed, and the clear purity of illumination with which the writer's mind is felt by the reader to play about its subject. The article is terribly difficult reading for an economist, but it is not difficult to appreciate how scientific and aesthetic qualities are combined in it together." The Ramsey model is today acknowledged as the starting point for optimal accumulation theory although its importance was not recognised until many years after its first publication. The main contributions of the model were firstly the initial question Ramsey posed on how much savings should be and secondly the method of analysis, the intertemporal maximisation (optimisation) of collective or individual utility by applying techniques of dynamic optimisation. Tjalling C. Koopmans and David Cass modified the Ramsey model incorporating the dynamic features of
population growth Population growth is the increase in the number of people in a population or dispersed group. The World population, global population has grown from 1 billion in 1800 to 8.2 billion in 2025. Actual global human population growth amounts to aroun ...
at a steady rate and of Harrod-neutral technical progress again at a steady rate, giving birth to a model named the Ramsey–Cass–Koopmans model where the objective now is to maximise household's
utility function In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. * In a Normative economics, normative context, utility refers to a goal or ob ...
.


Legacy


Frank P. Ramsey Medal

The Decision Analysis Society annually awards the Frank P. Ramsey Medal to recognise substantial contributions to
decision theory Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, ratio ...
and its application to important classes of real decision problems.


Frank Ramsey Professorships

Howard Raiffa was made the first Frank P. Ramsey Professor (of Managerial Economics) at Harvard University. Richard Zeckhauser was made the Frank P. Ramsey Professor of Political Economy at
Harvard University Harvard University is a Private university, private Ivy League research university in Cambridge, Massachusetts, United States. Founded in 1636 and named for its first benefactor, the History of the Puritans in North America, Puritan clergyma ...
in 1971. Raiffa's chair was joint between the Harvard Business and Kennedy Schools. Zeckhauser's chair is in the Kennedy School. Partha Dasgupta was made the Frank Ramsey Professor of Economics in 1994 and Frank Ramsey Professor Emeritus of Economics in 2010 at the
University of Cambridge The University of Cambridge is a Public university, public collegiate university, collegiate research university in Cambridge, England. Founded in 1209, the University of Cambridge is the List of oldest universities in continuous operation, wo ...
.


Ramsey Effect

In 1999, the philosopher Donald Davidson gave the name "Ramsey Effect" to anyone's realisation that their splendid new philosophical discovery already existed within Frank Ramsey's body of work.


See also

* Clique game *
Expected utility hypothesis The expected utility hypothesis is a foundational assumption in mathematical economics concerning decision making under uncertainty. It postulates that rational agents maximize utility, meaning the subjective desirability of their actions. Rationa ...
* Money pump * Ramsey cardinal * Structural Ramsey theory * Quantum Bayesianism * Theorem on friends and strangers *
Type theory In mathematics and theoretical computer science, a type theory is the formal presentation of a specific type system. Type theory is the academic study of type systems. Some type theories serve as alternatives to set theory as a foundation of ...
* History of type theory * Frederick Rowbottom * Bayesian epistemology


Notes


References

* * * * * * Galavotti, M. C. (Ed.) (2006), '' Cambridge and Vienna: Frank P. Ramsey and the Vienna Circle'', Dordrecht, The Netherlands: Springer. * Grattan-Guinness, Ivor (2000), ''The Search for Mathematical Roots 1870–1940'', Princeton University Press, Princeton, NJ. * Keynes, John Maynard (1933),
F. P. Ramsey
, in ''Essays in Biography'', New York, NY. * * * * * * * * Ramsey, F.P. (1931), ''The Foundations of Mathematics, and other Essays'', (ed.) R. B. Braithwaite **Ramsey, F.P. (1978) ''Foundations – Essays in Philosophy, Logic, Mathematics and Economics'', (ed.) D.H. Mellor, Humanities Press, * Rescher, Nicholas and Ulrich Majer (eds.) (1991). ''F. P. Ramsey: On Truth '', Dordrecht, Kluwer * Sahlin, N.-E. (1990), ''The Philosophy of F. P. Ramsey'', Cambridge University Press, Cambridge * Sahlin, N.-E. (1996), "He is no good for my work": On the philosophical relations between Ramsey and Wittgenstein, in ''Knowledge and Inquiry: Essays on Jaakko Hintikkas Epistemology and Philosophy of Science'', ed by M. Sintonen, Poznan Studies in the Philosophy of Sciences and the Humanities, Amsterdam, 61–84 * Sahlin, N.-E. (2005),
Ramsey's Ontology
', a special issue of ''Metaphysica'', No. 3 *


Further reading

* *
Review
by Simon Blackburn uthor-shared Eprint">Eprint.html" ;"title="uthor-shared Eprint">uthor-shared Eprint * (Reviews
1:
by Ray Monk
2:
by David Papineau [ Archived]) *


External links


Frank Ramsey
''
Stanford Encyclopedia of Philosophy The ''Stanford Encyclopedia of Philosophy'' (''SEP'') is a freely available online philosophy resource published and maintained by Stanford University, encompassing both an online encyclopedia of philosophy and peer-reviewed original publication ...
''.
Frank Plumpton Ramsey Papers

Better than the Stars/Frank Ramsey: a biography
a 1978 BBC radio portrait of Ramsey and a 1995 article derived from it, both by David Hugh Mellor.
Maths and philosophy puzzles
BBC Radio 3 programme discussing the legacy of Ramsey.
A photo of Ramsey's grave
at Findagrave {{DEFAULTSORT:Ramsey, Frank P. English atheists English socialists Mathematicians from Cambridge 20th-century British mathematicians 20th-century British philosophers Atheist philosophers Analytic philosophers Cambridge University Moral Sciences Club British philosophers of science Probability theorists Combinatorialists English economists People educated at Winchester College Alumni of Trinity College, Cambridge Fellows of King's College, Cambridge 1903 births 1930 deaths Analysands of Theodor Reik 20th-century British economists Vienna Circle Senior Wranglers Wittgensteinian philosophers Ramsey family