Mainstream economists everywhere exhibit an qirrational passion for dispassionate rationality.q Behavioral economists, and long-time critic of mainstream economics suggests that people in mainstrean economic models qcan think like Albert Einstein, store as much memory as IBMas Big Blue, and exercise the will power of Mahatma Gandhi, q suggesting that such a view of real world modern homo sapiens is simply wrongheaded. Indeed, Thaler and other behavioral economists and psychology have documented a variety of ways in which real-world people fall far short of mainstream economists' idealized economic actor, perfectly rational homo economicus. Behavioral economist Daniel Ariely has concluded that real-world people not only exhibit an array of decision-making frailties and biases, they are qpredictably irrational, q a position now shared by so many behavioral economists, psychologists, sociologists, and evolutionary biologists that a defense of the core rationality premise of modedrn economics is demanded.Equilibrium may never exist in reality, given the constant, complex fluctuations in the multitude of variables in the real world, but there is no reason it need exist in reality. All that is required is that equilibrium can be conceived as a mentalanbsp;...
|Author||:||Richard B. McKenzie|
|Publisher||:||Springer Science & Business Media - 2009-10-21|