Rational Fools: A Critique of the Behavioral Foundations of Economic Theory

In: Philosophy & public affairs, Band 6, Heft 4, S. 317-344

Abstract

A critique is presented of the assumption that people pursue their self-interest in each act. It is, thus, a critique of the "rationality" assumption used, among other places, in economic theory. Two types of departures are contrasted: "sympathy" & "commitment." An analysis is included of the structural extension in the conception of preference made necessary by behavior based on rational assessment of commitment. Preferences as rankings have to be replaced by a richer structure involving metarankings & related concepts. AA.