• Media type: E-Book
  • Title: Rationality – What? Misconceptions of Neoclassical and Behavioral Economics
  • Contributor: Rizzo, Mario J. [Author]
  • imprint: [S.l.]: SSRN, [2017]
  • Extent: 1 Online-Ressource (24 p)
  • Language: English
  • DOI: 10.2139/ssrn.2927443
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 1, 2017 erstellt
  • Description: Both behavioral and neoclassical economists maintain a concept of strict rationality that is exceptionally narrow. Neoclassicists use it as a tool both to explain what agents actually do and as a prescriptive framework. Behavioralists do not believe it adequately explains actual behavior but that it is still a good prescriptive framework. My view is that whatever the technical virtues of strict, narrow rationality in providing a foundation for useful economics constructs, it is completely inadequate as a prescriptive standard. The appropriate concept of rationality for evaluation purposes must be “liberal” or broad, reflecting the complexities of human decisionmaking. Behavioral economists are blind to much of this at a normative-prescriptive level. So their critique of market or other outcomes is impoverished
  • Access State: Open Access