Generalization of results and neoclassical rationality: unresolved controversies of behavioural economics methodology

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21630%2F19%3A00327264" target="_blank" >RIV/68407700:21630/19:00327264 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.1007/s11135-019-00837-1" target="_blank" >https://doi.org/10.1007/s11135-019-00837-1</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s11135-019-00837-1" target="_blank" >10.1007/s11135-019-00837-1</a>

Result language

angličtina

Original language name

Generalization of results and neoclassical rationality: unresolved controversies of behavioural economics methodology

Original language description

Many of behavioural economists have succumbed to misconception that economic models must be identified with observable reality. Therefore, behavioural approach enriches the sober neoclassical models with various psychological aspects of decision making in order to describe immediate reality more accurately. However, in contrast to natural sciences, social sciences aim at variance-based phenomena and thus the trade-off between theoretical objectiveness and empirical particularity remains. Behavioural insights are then at risk of being a mere fragmented empirical “evidence” of psychological descriptivism, which in combination with typical value neutrality should keep us vigilant about application in public policy. Secondly, the paper provides a progressive reading of rationality through a neoclassical lens. It is argued that rationality of a typical Bayesian decision-maker is immune to most of behavioural critique. It is shown on various examples that central behavioural concepts like satisficing behaviour or prospect theory cannot fundamentally challenge pillars of the neoclassical framework.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Quality & Quantity

ISSN

0033-5177

e-ISSN

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Volume of the periodical

53

Issue of the periodical within the volume

4

Country of publishing house

NL - THE KINGDOM OF THE NETHERLANDS

Number of pages

19

Pages from-to

1743-1761

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85060202431