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Habit, decision making, and rationality : comparing Veblen and early Herbert Simon
- Source :
- Journal of Economic Issues, Journal of Economic Issues, Newfound Press, 2017, 51 (3), pp.567-587. ⟨10.1080/00213624.2017.1353866⟩, Journal of Economic Issues, 2017, 51 (3), pp.567-587. ⟨10.1080/00213624.2017.1353866⟩
- Publication Year :
- 2017
- Publisher :
- HAL CCSD, 2017.
-
Abstract
- International audience; The article aims to contribute to the convergence between institutional and neo-Schumpeterian evolutionary economics. It intends to help unify the behavioral foundations of these two strands of thought by returning to the original views of their main historical inspirations. It thus proposes a comparative analysis of the theory of human behavior developed by Thorstein Veblen and Herbert Simon, respectively. The article notably discusses how Simon’s early work links together the notions of habit, rationality, and the decision-making process, and explores the extent to which his views are consistent with, complementary to, or divergent from Veblen’s. The article highlights several commonalities between Simon and Veblen’s views on habits. However, Simon departs from Veblen in developing a dual model of human behavior which clearly differentiates habit-based from decision-based behaviors. The article argues that neo-Schumpeterian evolutionary economists should go beyond this binary model and build on the pragmatist-Veblenian approach, in which these two dimensions are intimately entangled. This process could allow the economists in question to take advantage of the most valuable insights of institutional economics regarding the interactions between individual choices and habits and institutions.
- Subjects :
- learning
JEL: B - History of Economic Thought, Methodology, and Heterodox Approaches/B.B2 - History of Economic Thought since 1925/B.B2.B25 - Historical • Institutional • Evolutionary • Austrian
rationality
JEL: B - History of Economic Thought, Methodology, and Heterodox Approaches/B.B1 - History of Economic Thought through 1925/B.B1.B15 - Historical • Institutional • Evolutionary
JEL: B - History of Economic Thought, Methodology, and Heterodox Approaches/B.B3 - History of Economic Thought: Individuals/B.B3.B31 - Individuals
JEL: B - History of Economic Thought, Methodology, and Heterodox Approaches/B.B5 - Current Heterodox Approaches/B.B5.B52 - Institutional • Evolutionary
decision
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
routines
habit
Veblen
Subjects
Details
- Language :
- English
- ISSN :
- 00213624
- Database :
- OpenAIRE
- Journal :
- Journal of Economic Issues, Journal of Economic Issues, Newfound Press, 2017, 51 (3), pp.567-587. ⟨10.1080/00213624.2017.1353866⟩, Journal of Economic Issues, 2017, 51 (3), pp.567-587. ⟨10.1080/00213624.2017.1353866⟩
- Accession number :
- edsair.dedup.wf.001..ebf138cb2f34507e89beac1df5ce0084