Neuroeconomics and Rationality

22 Pages Posted: 23 Jun 2005

See all articles by Terrence R. Chorvat

Terrence R. Chorvat

George Mason University - Antonin Scalia Law School, Faculty

Kevin A. McCabe

George Mason University - Department of Economics

Abstract

The assumption of rationality is both one of the most important and most controversial assumptions of modern economics. This article discusses what current experimental economic as well as neuroscience research tells us about the relationship between rationality and the mechanisms of human decision-making. The article explores the meaning of rationality, with a discussion of the distinction between traditional constructivist rationality and more ecological concepts of rationality. The article argues that ecological notions of rationality more accurately describe both human neural mechanisms as well as a wider variety of human behavior than do constructivist notions of rationality.

Keywords: Rationality, Law and economics

JEL Classification: K00, K11, K12

Suggested Citation

Chorvat, Terrence R. and McCabe, Kevin A., Neuroeconomics and Rationality. George Mason Law & Economics Research Paper No. 05-13, Available at SSRN: https://ssrn.com/abstract=748264

Terrence R. Chorvat (Contact Author)

George Mason University - Antonin Scalia Law School, Faculty ( email )

3301 Fairfax Drive
Arlington, VA 22201
United States
703-993-8208 (Phone)

Kevin A. McCabe

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1,675
Abstract Views
6,980
rank
10,918
PlumX Metrics