Rationality of Rational Choice

Economics model human behavior within the construct of rationality, but what is rational behavior? In this episode we meet Herbert Simon who shows that instrumental rationality is likely not as smart as bounded rationality, at least from a modeling point of view. He also shows that organizations matter for what is to be considered rational behavior. From here we move to Gary Becker the great proponent of the use of rational choice to almost all areas of the human experience, including the family and crime. We end wth Mirless who shows us that lack of information can lead to moral hazard even without opportunistic intent.  In season 1 (Danish) we reviewed the history of economic thought before WWII. The coming seasons are dedicated to the Nobel Prize in Economics, and I am joined by economist Otto Brøns-Petersen. The Nobel prize is a good benchmark for how the field and profession of economics developed after WWII. We will focus both on the scientific contributions and on the people behind them. These are all star economists and worthy of your time and attention. Some will mainly feature in one episode, others in several. We therefore advice that you listen in the thematic order we propose – but it is up to you. Rest assured, we will cover all… Eventually.ReferencesBecker, Gary S. – Prize Lecture. NobelPrize.org. Nobel Prize Outreach AB 2023. Tue. 4 Jul 2023. https://www.nobelprize.org/prizes/economic-sciences/1992/becker/lecture/Becker, Gary S. – Banquet speech. NobelPrize.org. Nobel Prize Outreach AB 2023. Tue. 4 Jul 2023. https://www.nobelprize.org/prizes/economic-sciences/1992/becker/speech/Krueger, Anne O. “The Economics of Discrimination.” Journal of Political Economy, vol. 71, no. 5, 1963, pp. 481–86. JSTOR, http://www.jstor.org/stable/1829018.Mirrlees, James A. – Prize Lecture. NobelPrize.org. Nobel Prize Outreach AB 2023. Tue. 4 Jul 2023. https://www.nobelprize.org/prizes/economic-sciences/1996/mirrlees/lecture/Simon, Herbert A. – Prize Lecture. NobelPrize.org. Nobel Prize Outreach AB 2023. Tue. 4 Jul 2023. https://www.nobelprize.org/prizes/economic-sciences/1978/simon/lecture/