Kahneman's Failed Revolution Against Economic Orthodoxy

Critical Review: A Journal of Politics and Society. 27(2): 127-145, 2015

Posted: 27 Sep 2015 Last revised: 17 Nov 2015

See all articles by Zeljka Buturovic

Zeljka Buturovic

The Institute of Social Sciences (Serbia)

Slavisa Tasic

University of Mary

Date Written: September 25, 2015

Abstract

The work of Daniel Kahneman and his colleagues has established that people do not always think and act “rationally.” However, this amounts to saying that Kahneman and his collaborators interpret people's behavior in experimental settings to be inconsistent with the narrow understanding of rationality deployed by orthodox neoclassical economists. Whether this means that people make poor decisions in the real world, however, has not been demonstrated, a fact that calls into doubt the significance of the list of heuristics and biases generated by behavioral economists. Dual-process (System 1/System 2) theory was meant to give theoretical coherence to this list, but its empirical foundation, too, retains the premises of “rational” choice as an ideal.

Suggested Citation

Buturovic, Zeljka and Tasic, Slavisa, Kahneman's Failed Revolution Against Economic Orthodoxy (September 25, 2015). Critical Review: A Journal of Politics and Society. 27(2): 127-145, 2015, Available at SSRN: https://ssrn.com/abstract=2665738

Zeljka Buturovic

The Institute of Social Sciences (Serbia) ( email )

Kraljice Natalije 45 (Narodnog Fronta 45)
P. O. BOX 605
Beograd, 11000
Serbia

Slavisa Tasic (Contact Author)

University of Mary ( email )

Bismarck, ND
United States
7013558025 (Phone)
7013558025 (Fax)

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