The Concept of Rationality in Neoclassical and Behavioural Economic Theory

Alexandr Soukup, Mansoor Maitah () and Roman Svoboda

Modern Applied Science, 2015, vol. 9, issue 3, 1

Abstract: Theories that are based on the neoclassical basis such as expected utility theory or the theory of efficient markets assume rational choice of subjects in the sense of an optimal choice according to the criteria of neo-classical economics. Behavioral theory such as prospect theory assumes limited rationality in the choice of subjects. In this research the problem of choosing subjects is treated differently. The aim of this paper is to attempt a comparison between two basic approaches of contemporary economic theories that are applied in the financial markets, but also in other spheres of economic activity (public economics). Â

Date: 2015
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