Homo Economicus vs. Human Being: Outcomes of Irrationality
affiliation not provided to SSRN
Osaka University - Graduate School of Economics
May 16, 2012
ISER Discussion Paper No. 844
This paper investigates the individual outcomes of irrational thinking, including paranormality and non-scientific thinking. These modes of thinking are identified by factor analysis from a 2008 survey. Income and happiness are used as measures of performance. Empirical results reveal that non-scientific thinking lowers income, whereas paranormality does not affect it. While non-scientific thinking lowers happiness, paranormality raises it. Extending the model, we find that higher ability and self-control result in higher income and happiness. Selfishness raises income, but diminishes happiness. These results suggest that Homo economicus generally achieves higher individual performance, except that belief in paranormality raises happiness.
Number of Pages in PDF File: 34
Keywords: paranormality, non-scientific thinking, irrationality, happiness, factor analysis, Homo economicus
JEL Classification: D3working papers series
Date posted: May 21, 2012
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