Challenging the Notion of Rationality in Economics: What You Need to Know
Economic questions are important in everyday life, and economists use the principle of rationality to explain them. A new book argues that only a basic level of rationality is needed for economic explanations. However, this idea has faced criticism for being linked to individualism and irrationality. The book shows that using concepts like maximization to define rationality in economics creates more problems. Despite challenges, the book argues that assuming people are rational is still the best way to explain economic phenomena effectively. The author also presents new ideas about the role of rationality, individualism, and the relationship between economic and natural science explanations.