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‘BUT CAN'T WE GET THE SAME THING WITH A STANDARD MODEL?’ RATIONALIZING BOUNDED-RATIONALITY MODELS.
- Source :
- Economics & Philosophy; 03/01/2011, Vol. 27 Issue 1, p23-43, 21p
- Publication Year :
- 2011
-
Abstract
- This paper discusses a common criticism of economic models that depart from the standard rational-choice paradigm - namely, that the phenomena addressed by such models can be ‘rationalized’ by some standard model. I criticize this criterion for evaluating bounded-rationality models. Using a market model with boundedly rational consumers due to Spiegler (2006a) as a test case, I show that even when it initially appears that a bounded-rationality model can be rationalized by a standard model, rationalizing models tend to come with unwarranted ‘extra baggage’. I conclude that we should impose a greater burden of proof on rationalizations that are offered in refutation of bounded-rationality models. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 02662671
- Volume :
- 27
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Economics & Philosophy
- Publication Type :
- Academic Journal
- Accession number :
- 57541828
- Full Text :
- https://doi.org/10.1017/S0266267110000453