Categories
Ling- English Management and Organizations Persons

The model of rational choice is faulty

Virtually all of the assumptions built into it about human beings and the world are false:

  • It assumes that people are self-interested. Well, yes and no.
  • It assumes that there is a common scale of value on which everything can be compared. There isn’t.
  • It assumes that we can attach meaningful probabilities to outcomes. Sometimes we can, but life is not a roulette wheel or a series of coin flips, in which probabilities are well defined.

If we are to move toward societies of greater opportunity and justice, we need a more expansive notion of what it means to be rational than we will ever get from economics.

via Barry Schwartz.

Categories
Teaching and Learning

Economics resources

Excellent streaming video, audio files and presentation slides of economics seminars provided by the Center for Economic and Policy Research. Well worth consulting.