The theory of economic rationality is not a universal theory of rationality: understanding economic reason

Alexander Styhre ()

Chapter 3 in A Pragmatist Theory of Economic Reason, 2025, pp 58-88 from Edward Elgar Publishing

Abstract: In mainstream economic theory, rationality is regarded as instrumental, goal-oriented, and defined on the basis of the consistency of choices made by the agent. Such a theory of economic rationality is derived from other economic theory propositions – in particular, that of the market as an unsurpassable information-processing and price-discovery device – also revealing self-correcting capacities. The chapter examines the claims made regarding what rationality means in stipulative and practical terms. It is argued that a theory of economic rationality is made authoritative not on the basis of prior beliefs that are being judged as reasonable in the space of reasons, but rather is taken as authoritative on the basis of other interests, including the ambition to preserve an authoritative economic theory that includes a rationality criterion that is consistent with such propositions.

Keywords: Bounded rationality; Economic theory of rationality; Space of reasons (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035343911
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