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The rationality postulate in economics: its ambiguity, its deficiency and its evolutionary alternative

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Author Info
Viktor J. Vanberg
Abstract

Though the rationality postulate is generally considered the paradigmatic core of economics, there is little agreement about its specific content and methodological status. This paper seeks to clarify some of the ambiguity surrounding the postulate by drawing a distinction between the non-refutable, purely heuristic rationality principle and refutable rationality hypotheses . An alternative, evolutionary outlook at purposeful human behavior is outlined that captures much of what makes the rationality postulate attractive to economists but avoids the ambiguities that have made it the subject of enduring controversy.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of Economic Methodology.

Volume (Year): 11 (2004)
Issue (Month): 1 (March)
Pages: 1-29
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Handle: RePEc:taf:jecmet:v:11:y:2004:i:1:p:1-29

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Related research
Keywords: Rational Choice Theory; Rationality Principle; Rule-following; Program-based Behavior; Adaptive Agents;

Cited by:
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  1. V. J. Vanberg, 2004. "Human Intentionality and Design In Cultural Evolution," Papers on Economics and Evolution 2004-02, Max Planck Institute of Economics, Evolutionary Economics Group.
  2. V. Vanberg, 2007. "Rationality, Rule-Following and Emotions: On the Economics of Moral Preferences," Papers on Economics and Evolution 2006-21, Max Planck Institute of Economics, Evolutionary Economics Group.
  3. Markus Pasche, 2008. "Zum Erklärungsgehalt der verhaltensorientierten Spieltheorie," Jena Research Papers in Business and Economics - Working and Discussion Papers 04/2008, Friedrich-Schiller-University Jena, School of Economics and Business Administration. [Downloadable!]
  4. Gebhard Kirchgässner, 2005. "The Weak Rationality Principle in Economics," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Pelikan, Pavel, 2006. "Markets vs. Government when Rationality Is Unequally Bounded: Some Consequences of Cognitive Inequalities for Theory and Policy," Ratio Working Papers 85, The Ratio Institute, revised 03 Sep 2006. [Downloadable!]
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This page was last updated on 2009-11-14.


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