THE LONG DISTANCE BETWEEN THEORY AND PRACTICE.
RATIONALITY IN ECONOMIC THEORIES AND THE LIFE OF THE ECONOMISTS WHO ELABORATE THEM
THE LONG DISTANCE BETWEEN THEORY AND PRACTICE.
RATIONALITY IN ECONOMIC THEORIES AND THE LIFE OF THE ECONOMISTS WHO ELABORATE THEM
Author(s): Dan Uşvat, Mircea Teodoru, Horatiu SoimSubject(s): Economy
Published by: Editura Universităţii Vasile Goldiş
Keywords: economic theory; rationality; maximization; bounded rationality; routines; bias
Summary/Abstract: The rationality of the economic actor is an issue with a long history and strong controversies. The mainstream economics use the presupositions of a rational, maximizing individual that have perfect knowledge about reality. The opponents say that people are hardly rational (they have bounded rationality), they cannot maximize (their behaviour is based on routines) and the decision process is subject to many biases. The rational maximizing assumptions are supported by many economists. But were their own decisions rational and maximizing? Are their life path defined by rational decisions? Their autobiographies give us interesting insights. And the conclusion is relevant.
Journal: Studia Universitatis Vasile Goldiş, Arad - Seria Ştiinţe Economice
- Issue Year: 18/2008
- Issue No: 3
- Page Range: 646-653
- Page Count: 8
- Language: Romanian
