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Intuition and Institutions. The Bounded Society

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  • Macario Schettino

    (El Colegio de Mexico)

Abstract

The importance of social variables not completely dependent on individual decisions, along with the bounded rationality of human beings, is fundamental in the progress of economic theory. In this paper the relation between intuition, as a mental process that allows mentally bounded individuals to solve complex problems, and institutions, as the rules society imposes on itself, is explored. The conclusion is that they are both representations of a same mental process. Both are redefined, in this sense, and some ideas about institutional change are put forward.

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Bibliographic Info

Paper provided by EconWPA in its series Economic History with number 9507001.

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Date of creation: 20 Jul 1995
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Handle: RePEc:wpa:wuwpeh:9507001

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  1. Arrow, Kenneth J, 1994. "Methodological Individualism and Social Knowledge," American Economic Review, American Economic Association, vol. 84(2), pages 1-9, May.
  2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  4. Simon, Herbert A, 1986. "Rationality in Psychology and Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages S209-24, October.
  5. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September.
  6. Samuel Bowles & Herbert Gintis, 1993. "The Revenge of Homo Economicus: Contested Exchange and the Revival of Political Economy," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 83-102, Winter.
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