  |
|
|
||||
|
||||
The Weak Rationality Principle in Economics
Gebhard Kirchgässner Universität St. Gallen; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) February 2005 CESifo Working Paper Series No. 1410; University of St. Gallen Discussion Paper No. 2004-13 Abstract: The weak rationality principle is not an empirical statement but a heuristic rule of how to proceed in social sciences. It is a necessary ingredient of any "understanding" social science in the Weberian sense. In this paper, first this principle and its role in economic theorizing is discussed. It is also explained why it makes sense to use a micro-foundation and, therefore, employ the rationality assumption in economic models. Then, with reference to the "bounded rationality" approach, the informational assumptions are discussed. Third, we address the assumption of self-interest which is often seen as a part of the rationality assumption. We conclude with some remarks on handling the problems of "free will" as well as "weakness of the will" within the economic approach.
Keywords: Rationality, Self Interest, Micro-Foundation, Bounded Rationality JEL Classifications: B41 Working Paper SeriesDate posted: December 16, 2004 ; Last revised: February 17, 2005Suggested CitationContact Information
|
|
||||||||||||||||
© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was served by apollo6a in 0.641 seconds.
One-Click Download
Facebook
Twitter
Digg
Del.icio.us
CiteULike
