The Weak Rationality Principle in Economics
AbstractThe weak rationality principle is not an empirical statement but a heuristic rule how to proceed in social sciences. It is a necessary ingredient of any understanding’ social science in the Weberian sense. In this paper, first this principle and its role in economic theorizing is discussed. It is also explained why it makes sense to use a micro-foundation and, therefore, employ the rationality assumption in economic models. Then, with reference to the ?bounded rationality’ approach, the informational assumptions are discussed. Third, we address the assumption of self-interest which is often seen as a part of the rationality assumption. We conclude with some remarks of handling the problems of ?free will’ as well as ?weakness of the will’ within the economic approach.
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Bibliographic InfoPaper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2004 with number 2004-13.
Length: 19 pages
Date of creation: Dec 2004
Date of revision:
Rationality; Self Interest; Micro-Foundation; Bounded Rationality;
Other versions of this item:
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-20 (All new papers)
- NEP-EVO-2004-12-20 (Evolutionary Economics)
- NEP-HPE-2004-12-20 (History & Philosophy of Economics)
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