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David Calnitsky ; Asher Dupuy-Spencer - The economic consequences of homo economicus: neoclassical economic theory and the fallacy of market optimality
jpe:10646 - Journal of Philosophical Economics, May 27, 2013, Volume VI Issue 2 - https://doi.org/10.46298/jpe.10646The economic consequences of homo economicus: neoclassical economic theory and the fallacy of market optimalityArticle
This essay presents a critique of the standard ascension from the rational agent to the optimal market in economic theory. Critiques of homo economicus are found unsatisfactory on grounds that its employment allows for the prediction of essential features of actual markets. Using this same criterion we introduce Gary Becker’s essay, ‘Irrational Behavior and Economic Theory,’ which demonstrated that the same features of markets could be derived from non-rational behaviour. Thus, non-rationality is equally predictive but is less restrictive than rationality. Once the assumption of rationality is relaxed, the concept of market optimality (though not market order) must also be sacrificed.
Source: HAL:hal-03710276v1
Volume: Volume VI Issue 2
Section: Articles
Published on: May 27, 2013
Imported on: December 28, 2022
Keywords: neoclassical economics,rationality,philosophy of social science,[SHS]Humanities and Social Sciences
Classifications
JEL Classification System1
- D01 - Microeconomic Behavior: Underlying Principles
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