IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v6y1996i1p43-76.html
   My bibliography  Save this article

Choice and Action

Author

Listed:
  • Lane, David
  • Malerba, Franco
  • Maxfield, Robert
  • Orsenigo, Luigi

Abstract

In this essay, we argue that the rational choice (RC) provides an inadequate foundation for a theory of economic action. After defining RC sufficiently broadly to encompass much of the bounded rationality literature as well as neoclassical optimization theory, we present three principal arguments against RC. The first is cognitive: economic actors are experts at what they do, and the cognitive processes that underlie expertise are not consistent with RC, descriptively, prescriptively or positively. The second argument begins with the observation that economic action takes place in and through relationships between agents, and these relationships may generate actions that cannot be localized to individual agents. We argue that these generative relationships are essential to understanding such fundamental economic phenomena as innovation, and the actions that result from them are not amenable to analysis from a RC perspective. Finally, we argue that most economic agents lack the judgment and execution coherence required by RC. In a companion paper, we propose an alternative foundation for a theory of economic action that builds on the critique of RC presented in this paper.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Lane, David & Malerba, Franco & Maxfield, Robert & Orsenigo, Luigi, 1996. "Choice and Action," Journal of Evolutionary Economics, Springer, vol. 6(1), pages 43-76, February.
  • Handle: RePEc:spr:joevec:v:6:y:1996:i:1:p:43-76
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Geoffrey M. Hodgson, 2004. "Hayekian evolution reconsidered: a response to Caldwell," Cambridge Journal of Economics, Oxford University Press, vol. 28(2), pages 291-300, March.
    2. Christopher S. P. Magee & Stephen P. Magee, 2008. "The United States is a Small Country in World Trade," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 990-1004, November.
    3. Grossman, Gene M & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 675-708, August.
    4. Eicher, Theo S. & Henn, Christian, 2011. "In search of WTO trade effects: Preferential trade agreements promote trade strongly, but unevenly," Journal of International Economics, Elsevier, pages 137-153.
    5. Stefano Fiori, 2006. "The emergence of institutions in Hayek’s theory: two views or one?," Constitutional Political Economy, Springer, pages 49-61.
    6. Goldstein, Judith L. & Rivers, Douglas & Tomz, Michael, 2007. "Institutions in International Relations: Understanding the Effects of the GATT and the WTO on World Trade," International Organization, Cambridge University Press, vol. 61(01), pages 37-67, January.
    7. Kyle Bagwell & Robert W. Staiger, 2011. "What Do Trade Negotiators Negotiate About? Empirical Evidence from the World Trade Organization," American Economic Review, American Economic Association, pages 1238-1273.
    8. Anne O. Krueger, 1999. "Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 105-124, Fall.
    9. Geoffrey M. Hodgson, 2002. "Darwinism in economics: from analogy to ontology," Journal of Evolutionary Economics, Springer, pages 259-281.
    10. Carsten Herrmann-Pillath, 2006. "Reciprocity and the hidden constitution of world trade," Constitutional Political Economy, Springer, pages 133-163.
    11. Caldwell, Bruce, 2001. "Hodgson on Hayek: A Critique," Cambridge Journal of Economics, Oxford University Press, vol. 25(4), pages 539-553, July.
    12. Bruce Caldwell, 2004. "Hayekian evolution reconsidered: a reply to Hodgson," Cambridge Journal of Economics, Oxford University Press, vol. 28(2), pages 301-305, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mauro Caminati, 2016. "Knowledge specialization and R&D collaboration," Journal of Evolutionary Economics, Springer, pages 247-270.
    2. Muñoz, Félix & Encinar, María Isabel & Fernández-de-Pinedo, Nadia, 2014. "Intentionality and technological and institutional change: Implications for economic development," Working Papers in Economic Theory 2014/04, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    3. David Lane & Robert Maxfield, 1995. "Foresight, Complexity, and Strategy," Working Papers 95-12-106, Santa Fe Institute.
    4. repec:spr:joevec:v:27:y:2017:i:5:d:10.1007_s00191-017-0519-3 is not listed on IDEAS
    5. Luciano PILOTTI & Maria VERNUCCIO & Andrea GANZAROLI, 2011. "Tassonomia, topologia e tipologia dei sistemi produttivi locali in Italia: un tentativo di sintesi," Departmental Working Papers 2011-22, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    6. Brian Loasby, 1999. "Making Connections - A Review of Neil M. Kay, Pattern in Corporate Evolution," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(3), pages 439-452.
    7. Mouck, Tom, 2000. "Beyond Panglossian theory: strategic capital investing in a complex adaptive world," Accounting, Organizations and Society, Elsevier, vol. 25(3), pages 261-283, April.
    8. Mauro Caminati, 2012. "Self sustaining R&D networks," Department of Economics University of Siena 653, Department of Economics, University of Siena.
    9. Guido Fioretti, 2005. "A Model of Primary and Secondary Waves in Investment Cycles," Computational Economics, Springer;Society for Computational Economics, vol. 24(4), pages 357-381, June.
    10. Frederic Lee & Steve Keen, 2004. "The Incoherent Emperor: A Heterodox Critique of Neoclassical Microeconomic Theory," Review of Social Economy, Taylor & Francis Journals, pages 169-199.
    11. Massimo Riccaboni & Maria Laura Frigotto, 2011. "A Few Special Cases: Scientific Creativity and Network Dynamics in the Field of Rare Diseases," DISA Working Papers 2011/03, Department of Computer and Management Sciences, University of Trento, Italy, revised 24 May 2011.
    12. John Finch & Nicola Dinnei, 2001. "Capturing Knightian Advantages of Large Business Organisations Through Group Decision-making Processes," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 379-403.
    13. Hodgson, Geoffrey M., 2004. "Reclaiming habit for institutional economics," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 651-660, October.
    14. repec:spr:scient:v:89:y:2011:i:1:d:10.1007_s11192-011-0431-9 is not listed on IDEAS
    15. Félix-Fernando Muñoz & María-Isabel Encinar, 2014. "Intentionality and the emergence of complexity: an analytical approach," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 317-334, April.
    16. Oliver Budzinski, 2003. "Cognitive Rules, Institutions, and Competition," Constitutional Political Economy, Springer, pages 213-233.
    17. Russo, Margherita & Rossi, Federica, 2008. "Cooperation networks and innovation: A complex system perspective to the analysis and evaluation of a EU regional innovation policy programme," MPRA Paper 10156, University Library of Munich, Germany.
    18. Nicolai J. Foss, 1996. "Thorstein B. Veblen Precursor of the Competence-Based Approach to the Firm," DRUID Working Papers 96-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    19. Tony Fu-Lai Yu, 2003. "A subjectivist approach to strategic management," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 335-345.

    More about this item

    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:spr:joevec:v:6:y:1996:i:1:p:43-76. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.