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Rational Irrationality Across Institutional Contexts

Author

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  • Murphy Ryan H.

    (SMU Cox School of Business, O’Neil Center for Global Markets and Freedom, Southern Methodist University, P.O. Box 750333, Dallas, TX 75275, USA)

Abstract

This paper considers how Bryan Caplan’s concept of rational irrationality may manifest in various political institutional arrangements, building off the demand curve for irrationality. Mob democracy, anarchy, autocracy, and constitutionally constrained democracy are the governance structures addressed. While anarchy is strictly better than mob democracy, under certain conditions, democracy, anarchy, or constitutionally constrained democracy may yield the best outcomes depending on the circumstances.

Suggested Citation

  • Murphy Ryan H., 2015. "Rational Irrationality Across Institutional Contexts," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 21(1-2), pages 67-78, December.
    • Handle: RePEc:bpj:jeehcn:v:21:y:2015:i:1-2:p:67-78:n:2
    DOI: 10.1515/jeeh-2015-0005
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    References listed on IDEAS

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    1. Bryan Caplan, 2007. "Introduction to The Myth of the Rational Voter: Why Democracies Choose Bad Policies," Introductory Chapters, in: The Myth of the Rational Voter: Why Democracies Choose Bad Policies, Princeton University Press.
    2. Dani Rodrik, 2006. "Institutions for High-Quality Growth: What They Are and How to Acquire Them," Chapters, in: Kartik Roy & Jörn Sideras (ed.), Institutions, Globalisation and Empowerment, chapter 2, Edward Elgar Publishing.
    3. Bryan Caplan, 2010. "Persuasion, slack, and traps: how can economists change the world?," Public Choice, Springer, vol. 142(1), pages 1-8, January.
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    Cited by:

    1. Ryan H. Murphy, 2019. "Governance and the dimensions of autocracy," Constitutional Political Economy, Springer, vol. 30(2), pages 131-148, June.

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    Keywords

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    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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