The Weak Rationality Principle in Economics
Journal
Swiss Journal of Economics and Statistics
ISSN
0303-9692
Type
journal article
Date Issued
2013-01
Author(s)
Abstract
The weak rationality principle is not an empirical statement but a heuristic rule for how to proceed in social sciences. It is a necessary ingredient of any 'understanding' social science in the Weberian sense. In this paper, first this principle and its role in economic theorizing are discussed. It is also explained why it makes sense to use a micro-foundation and, therefore, to employ the rationality assumption in economic models. Then, we discuss whether the anomalies of individual behaviour as highlighted in modern behavioural economics impair the applicability of the weak rationality principle. This is not the case. We conclude with some remarks on handling the problems of 'free will' as well as 'weakness of the will' within the economic approach.
Language
English
Keywords
Rationality
Self-Interest
Micro-Foundation
Bounded Rationality
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Lang
Publisher place
Bern
Volume
149
Number
1
Start page
1
End page
26
Pages
26
Official URL
Subject(s)
Eprints ID
224901