Systematic Irrationality and the Emergence of Behavioral Economics
Rational choice theory is one of the theoretical pillars on which the discipline of economics rests. Equipped with this theoretical basis, scholars attempted to explain a wide array of circumstances. However, from the 1960s onwards, different scholars from the field of psychology found evidence tha...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Università degli Studi di Torino
2023-01-01
|
| Series: | Journal of Interdisciplinary History of Ideas |
| Online Access: | https://www.ojs.unito.it/index.php/jihi/article/view/6592 |
| _version_ | 1828047319809916928 |
|---|---|
| author | Till Neuhaus |
| author_facet | Till Neuhaus |
| author_sort | Till Neuhaus |
| collection | DOAJ |
| description |
Rational choice theory is one of the theoretical pillars on which the discipline of economics rests. Equipped with this theoretical basis, scholars attempted to explain a wide array of circumstances. However, from the 1960s onwards, different scholars from the field of psychology found evidence that deviations from rationality occur in systematic fashion. This not just created a new field of psychological research but also questioned rational choice theory. Ultimately, the two disciplines merged and formed what is nowadays known as behavioral economics. This article attempts to reconstruct the debates taking place at the economics-psychology nexus but focusing on the axioms of rational behavior as brought forward by von Neumann and Morgenstern (1944). In a second step, these developments will be discussed from a philosophy as well as sociology of science perspectives. Lastly, this article will try to isolate necessary pre-conditions for the hybridization of ideas as the emergence of behavioral economics can be considered the successful hybridization of economics and psychology.
Keywords: Conceptual Hybridization, History of Economics, History of Behavioral Economics, Prospect Theory, Rational Choice Theory
|
| first_indexed | 2024-04-10T18:39:31Z |
| format | Article |
| id | doaj.art-60ba8444a03a4619aebe786eaee7edc8 |
| institution | Directory Open Access Journal |
| issn | 2280-8574 |
| language | English |
| last_indexed | 2024-04-10T18:39:31Z |
| publishDate | 2023-01-01 |
| publisher | Università degli Studi di Torino |
| record_format | Article |
| series | Journal of Interdisciplinary History of Ideas |
| spelling | doaj.art-60ba8444a03a4619aebe786eaee7edc82023-02-01T17:10:49ZengUniversità degli Studi di TorinoJournal of Interdisciplinary History of Ideas2280-85742023-01-01112210.13135/2280-8574/6592Systematic Irrationality and the Emergence of Behavioral EconomicsTill Neuhaus0Bielefeld University Rational choice theory is one of the theoretical pillars on which the discipline of economics rests. Equipped with this theoretical basis, scholars attempted to explain a wide array of circumstances. However, from the 1960s onwards, different scholars from the field of psychology found evidence that deviations from rationality occur in systematic fashion. This not just created a new field of psychological research but also questioned rational choice theory. Ultimately, the two disciplines merged and formed what is nowadays known as behavioral economics. This article attempts to reconstruct the debates taking place at the economics-psychology nexus but focusing on the axioms of rational behavior as brought forward by von Neumann and Morgenstern (1944). In a second step, these developments will be discussed from a philosophy as well as sociology of science perspectives. Lastly, this article will try to isolate necessary pre-conditions for the hybridization of ideas as the emergence of behavioral economics can be considered the successful hybridization of economics and psychology. Keywords: Conceptual Hybridization, History of Economics, History of Behavioral Economics, Prospect Theory, Rational Choice Theory https://www.ojs.unito.it/index.php/jihi/article/view/6592 |
| spellingShingle | Till Neuhaus Systematic Irrationality and the Emergence of Behavioral Economics Journal of Interdisciplinary History of Ideas |
| title | Systematic Irrationality and the Emergence of Behavioral Economics |
| title_full | Systematic Irrationality and the Emergence of Behavioral Economics |
| title_fullStr | Systematic Irrationality and the Emergence of Behavioral Economics |
| title_full_unstemmed | Systematic Irrationality and the Emergence of Behavioral Economics |
| title_short | Systematic Irrationality and the Emergence of Behavioral Economics |
| title_sort | systematic irrationality and the emergence of behavioral economics |
| url | https://www.ojs.unito.it/index.php/jihi/article/view/6592 |
| work_keys_str_mv | AT tillneuhaus systematicirrationalityandtheemergenceofbehavioraleconomics |