Reassessing the Foundations of Behavioral Economics: A Critical Discourse on Rationality and Decision-Making Models

Quinn Parker; Robin Davis; Oliver Nelson; Jordan Phillips

Authors

Quinn Parker PhD
Robin Davis Professor
Oliver Nelson Associate Professor
Jordan Phillips D.Sc

Keywords:

behavioral economics, rationality, decision-making, cognitive biases, economic policy, market behavior, economic theory

Abstract

The intricate landscape of behavioral economics continues to evolve, reflecting the complexities of human decision-making that traditional economic models fail to capture. This paper conducts a critical re-evaluation of established concepts surrounding rationality, examining the implications of cognitive biases on economic behavior. Utilizing a mixed-methods approach that integrates empirical data with theoretical frameworks, we reveal the limitations of conventional rational actor models. Our analysis posits that a paradigm shift is necessary to accommodate the multifaceted nature of human behavior within economic theory. We conclude that embracing these complexities may enhance predictive accuracy and policy formulation in economic practice.

Author Biographies

Quinn Parker, PhD

PhD
Harvard University
Cambridge, MA 02138, USA

Robin Davis, Professor

Professor
University of Mannheim
68131 Mannheim, Germany

Oliver Nelson, Associate Professor

Associate Professor
University of Cambridge
Cambridge CB2 1TN, UK

Jordan Phillips, D.Sc

D.Sc
University of Melbourne
Melbourne VIC 3010, Australia

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