The Concept of Rational Behavior and the Problem of Learning from Error in Neoclassical Economics: With a view of the Austrian’s Critiques (in Persian)

Masoud Mohammadi Alamuti ()
Additional contact information
Masoud Mohammadi Alamuti: Institute for management and planning studies, Tehran, Iran.

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2021, vol. 26, issue 1, 169-205

Abstract: The concept of rational behavior has a significant role in economics and its analysis of market economy and general equilibrium. On the other hand, there exists a logical relation between limits of rationality and learning from error. With explaining the concept of rational behavior in the neoclassical economics and its relation with the rational expectation hypothesis this article addresses the following two questions: First, has the idea of learning from error played a role in the formation of neoclassical concept of rational behavior? If not, secondly, can the idea play a role in improving the meaning of rational behavior in economics? In response to these question, the article reviews the following discussions: (a) the neoclassical concept of rational behaviors is reviewed and the critiques of behavioral economics and the theories of choice under uncertainty are discussed, (b) the rational usage of information and its relation with the meaning of rational behavior are examined, and in this context the importance of the idea of learning from error is explored, and (c) Karl Popper’s theory of rationality as openness to criticism and its consequence for the idea of learning from error in terms of conjecture and refutation will be discussed. The article finally uses the Austrian economists’, i.e. Hayek and Krizner, critiques regarding the neoclassical concept of rational behavior in order to show that Popper’s theory of rationality can improve the concept of rational behavior in economics.

Keywords: Neoclassical Economics; Rational Behavior; Behavioral Economics; Openness to Criticism; Learning from Error; General Equilibrium; Austrian School; Karl Popper. (search for similar items in EconPapers)
JEL-codes: B13 B25 D50 D83 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jpbud.ir/article-1-1968-en.pdf (application/pdf)
http://jpbud.ir/article-1-1968-en.html (text/html)
http://jpbud.ir/article-1-1968-fa.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:auv:jipbud:v:26:y:2021:i:1:p:169-205

Access Statistics for this article

More articles in The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه) from Institute for Management and Planning studies Contact information at EDIRC.
Bibliographic data for series maintained by Nahid Jebeli ( this e-mail address is bad, please contact ).