IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v191y2022i3d10.1007_s11127-019-00679-3.html
   My bibliography  Save this article

Behavioral economics and the Virginia school of political economy: overlaps and complementarities

Author

Listed:
  • Roger D. Congleton

    (West Virginia University)

Abstract

A variety of complementarities and overlaps exist between the psychological strand of behavioral economics and the subjectivist strand of Virginia Political Economy. This paper provides an overview of those commonalities and places them in a common information processing framework. The framework can account for systematic mistakes, framing effects, subjectivity, individual variety, and several issues in constitutional political economy. It also reveals many commonalities between these two quite different approaches to human behavior.

Suggested Citation

  • Roger D. Congleton, 2022. "Behavioral economics and the Virginia school of political economy: overlaps and complementarities," Public Choice, Springer, vol. 191(3), pages 387-404, June.
    • Handle: RePEc:kap:pubcho:v:191:y:2022:i:3:d:10.1007_s11127-019-00679-3
    DOI: 10.1007/s11127-019-00679-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11127-019-00679-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11127-019-00679-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    2. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    3. Stoneman, P, 1981. "Intra-Firm Diffusion, Bayesian Learning and Profitability," Economic Journal, Royal Economic Society, vol. 91(362), pages 375-388, June.
    4. Richard Wagner, 1976. "Revenue structure, fiscal illusion, and budgetary choice," Public Choice, Springer, vol. 25(1), pages 45-61, March.
    5. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-595, September.
    6. Charness, Gary & Dave, Chetan, 2017. "Confirmation bias with motivated beliefs," Games and Economic Behavior, Elsevier, vol. 104(C), pages 1-23.
    7. Congleton, Roger D, 2001. "Rational Ignorance, Rational Voter Expectations, and Public Policy: A Discrete Informational Foundation for Fiscal Illusion," Public Choice, Springer, vol. 107(1-2), pages 35-64, April.
    8. Buchanan,James M. & Congleton,Roger D., 2006. "Politics by Principle, Not Interest," Cambridge Books, Cambridge University Press, number 9780521031325.
    9. Buchanan, James M & Vanberg, Viktor J, 2002. "Constitutional Implications of Radical Subjectivism," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 15(2-3), pages 121-129, June.
    10. Vernon L. Smith, 2003. "Constructivist and Ecological Rationality in Economics," American Economic Review, American Economic Association, vol. 93(3), pages 465-508, June.
    11. Shackle,G. L. S., 2010. "Decision Order and Time in Human Affairs," Cambridge Books, Cambridge University Press, number 9780521147491.
    12. Charles Plott, 2014. "Public choice and the development of modern laboratory experimental methods in economics and political science," Constitutional Political Economy, Springer, vol. 25(4), pages 331-353, December.
    13. Daniel Houser & Thomas Stratmann, 2012. "Gordon Tullock and experimental economics," Public Choice, Springer, vol. 152(1), pages 211-222, July.
    14. Bentham, Jeremy, 1781. "An Introduction to the Principles of Morals and Legislation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number bentham1781.
    15. James M. Buchanan, 2008. "Constitutional Political Economy," Springer Books, in: Readings in Public Choice and Constitutional Political Economy, chapter 17, pages 281-293, Springer.
    16. E. Ostrom, 2010. "A Behavioral Approach to the Rational Choice Theory of Collective Action Presidential Address, American political Science Association, 1997," Public administration issues, Higher School of Economics, issue 1, pages 5-52.
    17. Roger D. Congleton & Arye L. Hillman (ed.), 2015. "Companion to the Political Economy of Rent Seeking," Books, Edward Elgar Publishing, number 15325.
    18. Brennan,Geoffrey & Buchanan,James M., 2008. "The Reason of Rules," Cambridge Books, Cambridge University Press, number 9780521070904.
    19. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    20. Kahneman, Daniel, 2002. "Maps of Bounded Rationality," Nobel Prize in Economics documents 2002-4, Nobel Prize Committee.
    21. Congleton, Roger D., 1991. "Ideological conviction and persuasion in the rent-seeking society," Journal of Public Economics, Elsevier, vol. 44(1), pages 65-86, February.
    22. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brad R. Taylor, 2020. "The psychological foundations of rational ignorance: biased heuristics and decision costs," Constitutional Political Economy, Springer, vol. 31(1), pages 70-88, March.
    2. Kroneberg, Clemens, 2006. "The definition of the situation and variable rationality : the model of frame selection as a general theory of action," Papers 06-05, Sonderforschungsbreich 504.
    3. Pál Czeglédi, 2020. "The consistency of market beliefs as a determinant of economic freedom," Constitutional Political Economy, Springer, vol. 31(2), pages 227-258, June.
    4. David Dequech, 2008. "Varieties of uncertainty: a survey of the economic literature," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211223070, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Roger D. Congleton, 2018. "Intellectual foundations of public choice, the forest from the trees," Public Choice, Springer, vol. 175(3), pages 229-244, June.
    6. Schilirò, Daniele & Graziano, Mario, 2011. "Scelte e razionalità nei modelli economici: un'analisi multidisciplinare [Choices and rationality in economic models: a multidisciplinary analysis]," MPRA Paper 31910, University Library of Munich, Germany.
    7. Matthew D. Mitchell, 2019. "Uncontestable favoritism," Public Choice, Springer, vol. 181(1), pages 167-190, October.
    8. Gebhard Kirchgässner, 2013. "The Weak Rationality Principle in Economics," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(I), pages 1-26, March.
    9. Daniele SCHILIRÒ, 2013. "Bounded Rationality: Psychology, Economics And The Financial Crises," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 4(1), pages 97-108.
    10. Lawrence A. Boland & Irene M. Gordon, 1992. "Criticizing positive accounting theory," Contemporary Accounting Research, John Wiley & Sons, vol. 9(1), pages 142-170, September.
    11. Stefan Schiller, 2017. "The Quest for Rationality: Chief Financial Officers’ and Accounting Master’s Students’ Perception of Economic Rationality," SAGE Open, , vol. 7(2), pages 21582440177, April.
    12. Mario GRAZIANO & Daniele SCHILIRÒ, 2011. "Rationality And Choices In Economics: Behavioral And Evolutionary Approaches," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 2(2), pages 182-195.
    13. Ronald Schettkat, 2018. "The Behavioral Economics of John Maynard Keynes," Schumpeter Discussion Papers sdp18007, Universitätsbibliothek Wuppertal, University Library.
    14. Jiri Skolka, 1987. "Wissen, Arbeitsteilungen und Strukturwandel," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 13(2), pages 245-270.
    15. Benno Torgler, 2021. "The Power of Public Choice in Law and Economics," CREMA Working Paper Series 2021-04, Center for Research in Economics, Management and the Arts (CREMA).
    16. T. Durant, 2011. "Making executive politics mutually productive and fair," Constitutional Political Economy, Springer, vol. 22(2), pages 141-172, June.
    17. James Lee Caton, 2019. "Creativity in a theory of entrepreneurship," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 8(4), pages 442-469, September.
    18. Schilirò, Daniele, 2011. "Decisioni e razionalità in economia [Decisions and rationality in economics]," MPRA Paper 29477, University Library of Munich, Germany.
    19. Basel, Jörn S. & Brühl, Rolf, 2013. "Rationality and dual process models of reasoning in managerial cognition and decision making," European Management Journal, Elsevier, vol. 31(6), pages 745-754.
    20. Timothy P. Roth, 2014. "Economists and the State," Books, Edward Elgar Publishing, number 15078.

    More about this item

    Keywords

    Behavioral economics; Public choice; Virginia School; Natural ignorance; Rule-bound choice; Framing effects; Human variety; Information collection and processing;
    All these keywords.

    JEL classification:

    • B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:191:y:2022:i:3:d:10.1007_s11127-019-00679-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.