Rationality in Economics: Theory and Evidence

Dhami, Sanjit; al-Nowaihi, Ali

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174995

Title:

Rationality in Economics: Theory and Evidence

Authors:

Dhami, Sanjit
al-Nowaihi, Ali

Year of Publication:

2018

Series/Report no.:

CESifo Working Paper No. 6872

Publisher:

Center for Economic Studies and ifo Institute (CESifo), Munich

Abstract:

We examine the various senses in which economist use the term “rationality” and then outline some of the commonly drawn implications and auxiliary assumptions. Finally, we confront the implications with the empirical evidence, drawing on the insights from the exciting new field of behavioral economics.

Subjects:

rationality
self-regarding preferences
efficient markets
heuristics
optimization

JEL:

B40

Document Type:

Working Paper

Appears in Collections:

CESifo Working Papers, CESifo GmbH

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