On Economic Man: An Essay on the Elements of Economic Theory.

The main purpose of this paper is to systematize the characteristics of behavioural economics, and, on this basis, to highlight the differences between behavioural economics and neoclassical economics. Special emphasis is placed on the differences between the real and the rational economic man. Attention is focused on economic choice modelling under the influence of behavioural economics and the emergence of the so-called limited rationality. The paper also presents the methodological tools of behavioural economics, as well as the principles on which it is built as a modern branch of economic theory.

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Higher and lower virtues in commercial society

Politics Philosophy & Economics ◽

10.1177/1470594x10386564 ◽

2011 ◽

Vol 10 (4) ◽

pp. 370-395 ◽

Cited By ~ 1

Author(s):

Lisa Herzog

Keyword(s):

Economic Theory ◽

Adam Smith ◽

Crowding Out ◽

Commercial Society ◽

Clear Separation ◽

Limited Knowledge ◽

Economic Man ◽

Motivation Crowding ◽

The One

Motivation crowding out can lead to a reduction of ‘higher’ virtues, such as altruism or public spirit, in market contexts. This article discusses the role of virtue in the moral and economic theory of Adam Smith. It argues that because Smith’s account of commercial society is based on ‘lower’ virtue, ‘higher’ virtue has a precarious place in it; this phenomenon is structurally similar to motivation crowding out. The article analyzes and systematizes the ways in which Smith builds on ‘contrivances of nature’ in order to solve the problems of limited self-command and limited knowledge. As recent research has shown, a clear separation of different social spheres can help to reduce the risk of motivation crowding out and preserve a place for ‘higher virtue’ in commercial society. The conclusion reflects on the performative power of economics, arguing that the one-sided focus on models of ‘economic man’ should be embedded in a larger context.

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RATIONALITY MEANS BEING WILLING TO SAY YOU'RE SORRY

Social Philosophy and Policy ◽

10.1017/s0265052505052088 ◽

2005 ◽

Vol 22 (2) ◽

pp. 204-225 ◽

Cited By ~ 2

Author(s):

Jennifer Roback Morse

Keyword(s):

Economic Theory ◽

Personal Identity ◽

Human Behavior ◽

Homo Economicus ◽

Economic Man

What does a person really want when he asks for an apology? Why do people so often find it difficult to give an apology? Repentance is relevant to personal identity because the unrepentant soul has his own theory of personal identity. The unrepentant person believes he is his preference, and that he is entitled to the behavior that flows from those preferences. This fact can explain why people are so often reluctant to admit wrongdoing, why people place so much importance upon receiving an apology and other behaviors that would be otherwise inexplicable. The unrepentant person uses something akin to a naive economic theory of human behavior. The naive version of homo economicus, or economic man, can never truly be sorry for anything, and as a result, will be almost impossible to live with. A person who identifies himself too closely with his preferences will bring misery to himself and those around him.

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Economic man – or straw man?

Behavioral and Brain Sciences ◽

10.1017/s0140525x05230145 ◽

2005 ◽

Vol 28 (6) ◽

pp. 817-818 ◽

Cited By ~ 33

Author(s):

Ken Binmore

Keyword(s):

Experimental Data ◽

Economic Theory ◽

Social Norms ◽

Small Sample ◽

Small Scale ◽

Economic Experiments ◽

Economic Man ◽

Target Article

The target article by Henrich et al. describes some economic experiments carried out in fifteen small-scale societies. The results are broadly supportive of an approach to understanding social norms that is commonplace among game theorists. It is therefore perverse that the rhetorical part of the paper should be devoted largely to claiming that “economic man” is an experimental failure that needs to be replaced by an alternative paradigm. This brief commentary contests the paper's caricature of economic theory, and offers a small sample of the enormous volume of experimental data that would need to be overturned before “economic man” could be junked.

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Economic Theory, Ideal Types, and Rationality

Analyse & Kritik ◽

10.1515/auk-1982-0102 ◽

1982 ◽

Vol 4 (1) ◽

Author(s):

Lansana Keita

Keyword(s):

Economic Theory ◽

Scientific Explanation ◽

Natural Sciences ◽

Type Model ◽

Rational Behavior ◽

Ideal Types ◽

Economic Agents ◽

Economic Man ◽

Normative Principle ◽

The Ideal

AbstractContemporary economic theory is generally regarded as a scientific or at least potentially so. The replacing of the cardinal theory of utility measurement by the ordinal theory was supposed to prepare the groundwork for economics as a genuine science. But in adopting the ordinal approach, theorists saw fit to anchor ordinal theory to axioms of choice founded on principles of rational behavior. Behavior according to these axioms was embodied in the ideal type model of rational economic man. This model served the basis for scientific explanation of the choices made by actual economic agents. I argue though that the postulate of rationality is a normative principle and that this compromises the scientific pretensions of economic theory. Yet the theorist must rely on this principle to formulate predictive and explanatory theories. This raises questions as to whether it is possible that economic theory satisfy the same kind of scientific criteria set down for research in the natural sciences.

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