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EconStor
Conference object . 2010
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Are Economists Rational? On the Rationality of the 'Rational Choice' Paradigm

Authors: Binswanger, Johannes;

Are Economists Rational? On the Rationality of the 'Rational Choice' Paradigm

Abstract

Today, an overwhelming part of academic analysis is based on the rational choice paradigm. This is true, in particular, for theoretical analyses; but it also holds for empirical analyses as far as they are based on a structural model. It also holds in spite of the existence of the behavioral economics paradigm. In this paper I ask whether the methodological restriction of rational choice is really in the interest of an efficient production of knowledge. Since rational choice is such a universal paradigm in economics, it holds, in fact, a monopoly. This would be desirable if there were a case for a natural monopoly. I argue, however, that this is unlikely to be the case and that more competition between different paradigms would increase the productivity of the economics profession. This increased competition will not simply occur by itself but requires a change in institutions. I discuss several ways, how increased competition between different methodologies could be implemented in practice. I also discuss how the restriction on the rational choice methodology may reflect a form of non-Bayesian judgment of economic researchers themselves.

Country
Switzerland
Related Organizations
Keywords

causality, Arbitrariness, ddc:330, Bayesian updating, methodology, parsimony, B40, A11, competition, rational choice, D00

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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