A criterion for realism, with an application to behavioral economic modelsArticle
Authors: Gustavo Marqués 1; Diego Weisman 1
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Gustavo Marqués;Diego Weisman
1 Universitad de Buenos Aires = University of Buenos Aires [Argentina]
Many economists working within the framework of behavioral economics (BE) label the conventional way of modeling as unrealistic, and consider their own approach as more realistic than the standard practice. However, a criterion for realism is lacking in behavioral economics literature. This paper offers a simple criterion for predicating realism to economic models, and provides an illustration of such criterion at work on a particular BE model.