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Homo economicus

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216:, for example), that pursuing one's individual self-interest promotes social well-being. In Book V, Chapter I, Smith argues, "The man whose whole life is spent in performing a few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become." This could be seen as prefiguring one part of 225:
factors, natural and social. It had been found to be the foundation of neoclassical theory of the firm which assumed that individual agents would act rationally amongst other rational individuals. In which Adam Smith explains that the actions of those that are rational and self-interested under homo economicus promotes the general good overall which was understood as the efficient allocation of material wealth. However, social scientists had doubted the actual importance of income and wealth to overall happiness in societies.
618:. From this they argued the endowment effect acts on us by making it painful for us to give up the endowment. Kahneman also argued against the rational-agent model in which agents make decisions with all of the relevant context including weighing all possible future opportunities and risks. Evidence supports the claim that decisions are often made by "narrow framing" with investors making portfolio decisions in isolation from their entire portfolio (Nicholas Barberis et al., 2003). 464: 221:
the time needed for travel and trade, through "expedients", such as steam-engine ships, here means the typical argument that capitalism brings freedom of entrepreneurship and innovation, which then bring prosperity. Thus, Smith is not unreasonably called "The Father of Capitalism"; early on, he theorized many of today's most widespread and deep-seated pro-capitalism arguments.
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opposed Homo Economicus had found that individuals will constantly adjust their choices according to changes in their income and market prices. Furthermore, Kahneman and Tversky had conducted experiments exploring prospect theory where results from several experiments concluded that individuals will generally put higher importance on avoiding loss over making a gain.
606:, Thaler wrote features on the many ways observed economic behavior in markets deviated from theory. One such anomaly was the endowment effect by which individual preferences are framed based on reference positions (Kahneman et al., 1990). In an experiment in which one group was given a mug and the other was asked how much they were 839:
eating chocolate cake and losing weight) or between individual goals and societal values. Such conflicts may lead to "irrational" behavior involving inconsistency, psychological paralysis, neurosis, and psychic pain. Further irrational human behaviour can occur as a result of habit, laziness, mimicry
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sought to demote this model from its broad classification under the 'genus homo', arguing that it insufficiently captured the complex ethical and behavioral dimensions of human decision-making. Their critique emphasized the need for a more nuanced understanding of human agency beyond the mere pursuit
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in the making of economic decisions, rather than relying on the rational man who is fully informed of all circumstances impinging on his decisions. They argue that perfect knowledge never exists, which means that all economic activity implies risk. Austrian economists rather prefer to use as a model
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of labor; and also as a pro-worker argument against the division of labor and the restrictions it places upon freedom of occupation. But even so, taken in the context of the work as a whole, Smith clearly intends it in a pro-capitalism, pro-bourgeoisie, way: "removing difficulties", such as reducing
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The system established by the concept of the homo economicus has become the basis for the concepts used in economics."Self-interest is the main motivation of human beings in their transactions" is a theoretical structure in the concept of homo economicus. Over the years, economists have studied and
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are rational. In 1995, Tversky demonstrated the tendency of investors to make risk-averse choices in gains, and risk-seeking choices in losses. The investors appeared as very risk-averse for small losses but indifferent for a small chance of a very large loss. This violates economic rationality as
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is optimized given perceived opportunities. That is, the individual seeks to attain very specific and predetermined goals to the greatest extent with the least possible cost. Note that this kind of "rationality" does not say that the individual's actual goals are "rational" in some larger ethical,
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Later in the same work, Mill stated that he was proposing "an arbitrary definition of man, as a being who inevitably does that by which he may obtain the greatest amount of necessaries, conveniences, and luxuries, with the smallest quantity of labour and physical self-denial with which they can be
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has argued there are grave pitfalls in assuming that rationality is limited to selfish rationality. Economics should build into its assumptions the notion that people can give credible commitments to a course of conduct. He demonstrates the absurdity with the narrowness of the assumptions by some
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In Kahneman-Tversky’s criticism of the Homo Economicus model, many mainstream economists had utilised deductive logic to further progress the Homo Economicus idea as opposed to Daniel Kahneman and Amos Tversky in which they had applied inductive logic. Further findings of their experiments that
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possessing stable and well-defined preferences that they consistently act upon in a self-interested manner. Using insights from psychological experiments found explanations for anomalies in economic decision-making that seemed to violate rational choice theory. Writing a column in the Journal of
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The early role of Homo Economicus within neoclassical theory was summarised to include a general objective of discovering laws and principles to accelerate further growth within the national economy and the welfare of ordinary citizens. These laws and principles were determined by two governing
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does not treat the whole of man's nature as modified by the social state, nor of the whole conduct of man in society. It is concerned with him solely as a being who desires to possess wealth, and who is capable of judging the comparative efficacy of means for obtaining that
697:. Frey and others argue that too much emphasis on rewards and punishments can "crowd out" (discourage) intrinsic motivation: paying a boy for doing household tasks may push him from doing those tasks "to help the family" to doing them simply for the reward. 844:, aimed at practical use in the economic sphere (e.g. economic calculus), and the" anthropological" version, aimed at depicting a certain type of man, or even human nature in general. The former has proved unrealistic, liable to be corrected resorting to 709:
ignores an extremely important question, i.e. the origins of tastes and the parameters of the utility function by social influences, training, education, and the like. The exogeneity of tastes (preferences) in this model is the major distinction from
788:, by comparison, shows an elevated stimulation of the pleasure circuits of the whole brain, reduction in the levels of stress, optimal functioning of the immune system, reduction in cortico-steroids and epinephrine and cortisol, activation of the 449:"Where is the railway station?" he asks me. "There," I say, pointing at the post office, "and would you please post this letter for me on the way?" "Yes," he says, determined to open the envelope and check whether it contains something valuable. 725:
in 1958, to parody the image of human nature given in some sociological models that attempt to limit the social forces that determine individual tastes and social values. (The alternative or additional source of these would be biology.) Hirsch
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levels are minimised, and the general immune system shows a level of suppression. Such a pattern is associated with a generalised reduction in the levels of trust. Unsolicited "gift giving", considered irrational from the point of view of
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The term 'Homo economicus' was initially critiqued for its portrayal of the economic agent as a narrowly defined, money-making animal, a characterization heavily influenced by the works of Adam Smith and John Stuart Mill. Authors from the
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model assume that agents know what is best for their long-term physical and mental health. For example, an agent's utility function could be linked to the perceived utility of other agents (such as one's husband or children), making
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Falk, A. (2003). Homo Economicus versus Homo Reciprocans: Studies on a New Social Political Model of Change? Perspektiven der Wirtschaftspolitik : PWP : eine Zeitschrift des Vereins fĂŒr Socialpolitik, 4(1),
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came to dominate mainstream economics. The term "economic man" then took on a more specific meaning: a person who acted rationally on complete knowledge out of self-interest and the desire for wealth.
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model assume that this hypothetical individual knows what is best for their long-term physical and mental health and can be relied upon to always make the right decision for themself. See
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In advanced-level theoretical economics, scholars have modifyied models enough to more realistically depict real-life decision-making. For example, models of individual behavior under
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assumptions have been criticized not only by economists on the basis of logical arguments, but also on empirical grounds by cross-cultural comparison. Economic anthropologists such as
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usually understood. Further research on this subject, showing other deviations from conventionally defined economic rationality, is being done in the growing field of experimental or
771:, associated with elevated levels of stress. It seems that the dopaminic system is only activated upon achieving the reward, and otherwise the "pain" receptors, particularly in the 610:(WTP) for the mug, it was found that the price that those endowed with the mug where willingness to accept (WTA) greatly exceeded that of the WTP. This was seen as falsifying the 1531:
Rilling, J.K.; Sanfey, A.G.; Aronson, J.A.; Nystrom, L.E.; Cohen, J.D. (2004). "Opposing BOLD responses to reciprocated and unreciprocated altruism in putative reward pathways".
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in which tastes are taken as partially or even totally determined by the societal environment. Comparisons between economics and sociology have resulted in a corresponding term
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model put forward from the standpoint of ethics usually refer to this traditional ethic of kinship-based reciprocity that held together traditional societies. Philosophers
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Urbina, D. A., & Ruiz-Villaverde, A. (2019). A Critical Review of Homo Economicus from Five Approaches. The American Journal of Economics and Sociology, 78(1), 63–93.
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Hirsch, Paul, Stuart Michaels and Ray Friedman. 1990. "Clean Models vs. Dirty Hands: Why Economics Is Different from Sociology." In Sharon Zukin and Paul DiMaggio, eds.
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in which the person giving the gift receives a pleasure equivalent to the person receiving it. This confirms the findings of anthropology which suggest that a "
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Mill, John Stuart. "On the Definition of Political Economy, and on the Method of Investigation Proper to It," London and Westminster Review, October 1836.
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acts not to pursue selfish interests but to fulfill social roles (though the fulfillment of social roles may have a selfish rationale—e.g. politicians or
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As in social science, these assumptions are at best approximations. The term is often used derogatorily in academic literature, perhaps most commonly by
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that acts to obtain the highest possible well-being for themself given available information about opportunities and other constraints, both natural and
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It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.
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Bowles, Samuel and Herbert Gintis "A Cooperative Species: Human Reciprocity and its Evolution" (Princeton University Press; Reprint edition)
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AK Sen, ‘Rational Fools: A Critique of the Behavioural Foundations of Economic Theory’ (1977) 6 Philosophy and Public Affairs 317, 332
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Kluver, Jesse; Frazier, Rebecca; Haidt, Jonathan (2014). "Behavioral ethics for Homo economicus, Homo heuristicus, and Homo duplex".
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have demonstrated that in traditional societies, choices people make regarding production and exchange of goods follow patterns of
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as an actor with too great an understanding of macroeconomics and economic forecasting in his decision making. They stress
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and simple obedience. According to Sergio Caruso, one should distinguish between the purely "methodological" version of
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Smith, Adam. “On the Division of Labour,” The Wealth of Nations, Books I–III. New York: Penguin Classics, 1986, p. 119.
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in reference to Mill's writings, as one of a number of phrases that imitate the scientific name for the human species:
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model as ignoring the inner conflicts that real-world individuals suffer, as between short-term and long-term goals (
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and Thaler found that investors also tended to use unreasonable time periods in evaluating their investments.
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social, or human sense, only that they try to attain them at minimal cost. Only naĂŻve applications of the
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discussed institutional economics, behavioural economics, political economy, economic anthropology and
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Homo Sociologicus: ein Versuch zur Geschichte, Bedeutung und Kritik der Kategorie der sozialen Rolle
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if only those types are contrived as socially and/or historically determined abstractions (such as
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Rodriguez-Sickert, C. (2009). Homo economicus. In Handbook of Economics and Ethics (Edward Elgar).
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as a useful abstraction on the ground of economic theory, provided that we grant there be as many
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The term "economic man" was used for the first time in the late nineteenth century by critics of
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The Economics Book: From Xenophon to Cryptocurrency, 250 Milestones in the History of Economics
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Self-Interest, Homo Islamicus and Some Behavioral Assumptions in Islamic Economics and Finance
1519: 1011: 2469: 2454: 2028: 1837: 1413: 1166: 984: 849: 363: 314: 192: 168:'s work on political economy. Below is a passage from Mill's work that critics referred to: 3051: 2803: 2788: 2675: 2670: 2574: 2559: 2524: 2489: 2088: 2033: 1955: 1921: 1888: 1587: 686: 682: 575: 516: 488: 411:("feIb@(r)) , a term used to designate man as a maker of tools.) Variants are often comic: 141: 1093:, 2nd ed. London: Longmans, Green, Reader & Dyer, 1874, essay 5, paragraphs 38 and 48. 407:
and intended to personify some aspect of human life or behaviour (indicated by the adj.).
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does not restrict what sort of preferences are admissible. Only naive applications of the
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bases its choices on a consideration of its own personal "utility function".
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is usually seen as "rational" in the sense that well-being as defined by the
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Edward J. O'Boyle, Mayo Research Institute, a refutation of reductionism in
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economists with the following example of two strangers meeting on a street.
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Note that such forms should logically keep the capital for the "genus" name—
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in which for every person the WTA equals the WTP that is the basis of the
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Another weakness is highlighted by economic sociologists, who argue that
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Kosfeld, M.; Heinrichs, M; Zak, P.J.; Fischbacher, U.; Fehr, E. (2005).
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Please help rewrite or integrate negative information to other sections
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of the left hemisphere of the brain show a high level of activation.
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Persky, Joseph. "Retrospectives: The Ethology of Homo economicus."
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is often (but not necessarily) modelled through the assumption of
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upon which societies and cultures write values and goals; unlike
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This article is about the economic concept. For the journal, see
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As a theory on human conduct, it contrasts to the concepts of
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Structures of Capital: The Social Organization of the Economy
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Pareto Desirable Redistribution: The case of Malice and Envy
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would be a hero in war or would get inherent pleasure from
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Moral Markets: The Critical Role of Values in the Economy
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is certainly long established; Persky traces it back to
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Essays on Some Unsettled Questions of Political Economy
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Pareto, Vilfredo (1906). "Manual of political economy".
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Essays on Some Unsettled Questions of Political Economy
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and, in the 20th century, by the likes of Ayn Rand (in
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puts aside all other aspects of human nature (such as
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This comment is perfectly in line with the notion of
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Organizational Behavior and Human Decision Processes
822: 1689:(2nd ed. Longmans, Green, Reader & Dyer 1874) ( 1641:, Florence (Italy): Firenze University Press, 2012 1517:. 2015, 2. University of Vienna (UniversitÀt Wien). 1245:Zabieglik, Stefan (2002). "The Origins of the Term 884:as the modes of production. However the concept of 27:
Model of humans as rational, self-interested agents
1259: 1137: 94:. It assumes that agents always act in a way that 61:, and who pursue their subjectively defined ends 3023: 1639:Homo oeconomicus. Paradigma, critiche, revisioni 654:model postulates. Such systems have been termed 990:List of alternative names for the human species 1515:Recent Notes on Labor Science and Organization 1318: 674:made by the self-interested utility function. 658:rather than market economy. Criticisms of the 1963: 1752: 1319:Benartzi, Shlomo; Thaler, Richard H. (1995). 237:Economists in the late 19th century—such as 1164: 1080:, Vol. 9, No. 2 (Spring, 1995), pp. 221–231 1016:. Princeton University Press. p. 158. 827:Critics, learning from the broadly defined 1970: 1956: 1759: 1745: 1469: 1977: 1072: 1070: 907: 1110: 1108: 317:for further discussion; the article on 272:is a term used for an approximation or 14: 3024: 1766: 1207: 1121:The Journal of Philosophical Economics 681:, points to the excessive emphasis on 670:are noted for their criticisms of the 602:Economic Perspectives under the title 231:English Historical School of Economics 159: 1951: 1740: 1474:. Köln/Opladen: Westdeutscher Verlag. 1165:Konow, James; Earley, Joseph (2008). 1114: 1067: 208:and the idea, propounded by Smith in 126:compatible with other models such as 1576:"Oxytocin increases trust in humans" 1278:This is from the CD edition of 2002. 1105: 1078:The Journal of Economic Perspectives 755:The as of 2015 emerging science of " 473:"criticism" or "controversy" section 457: 400:or mock-L. adjs. in names imitating 1663:Culture, Social Norms and Economics 1009: 721:, introduced by German sociologist 650:which differ sharply from what the 24: 2019:First-player and second-player win 1328:The Quarterly Journal of Economics 1308:https://doi.org/10.1111/ajes.12258 823:Psychologists and anthropologists 25: 3063: 1720:(DOC) by Dr. Mohammad Omar Farooq 1711: 1115:Elahi, Khandakar (January 2014). 2126:Coalition-proof Nash equilibrium 1545:10.1097/00001756-200411150-00022 1431:University Of Chicago Press 1999 920:can be found in the literature. 462: 49:, is the portrayal of humans as 1651: 1631: 1622: 1567: 1524: 1499: 1478: 1463: 1434: 1421: 1405: 1389: 1362: 1312: 1300: 1290: 1281: 1272: 1252: 1239: 1230: 1201: 700: 569:questioned the assumption that 2136:Evolutionarily stable strategy 1192: 1158: 1131: 1096: 1083: 1037: 1003: 597:have criticized the notion of 438:Actual usage is inconsistent. 349:A History of Political Economy 343:can be found even earlier, in 187:The Theory of Moral Sentiments 13: 1: 2064:Simultaneous action selection 1672: 1371:The Original Affluent Society 1186:10.1016/j.jpubeco.2007.04.006 916:and of people suffering from 522: 476:may compromise the article's 453: 2996:List of games in game theory 2176:Quantal response equilibrium 2166:Perfect Bayesian equilibrium 2101:Bayes correlated equilibrium 1053:Principles of Microeconomics 7: 3042:Latin philosophical phrases 2465:Optional prisoner's dilemma 2196:Self-confirming equilibrium 1724:Requiem for Homo Economicus 1174:Journal of Public Economics 1152:10.1016/j.obhdp.2013.12.004 1044:Rittenberg and Tregarthen. 1010:Zak, Paul J. (2010-12-16). 923: 616:efficient-market hypothesis 378:, or dollar-hunting animal. 374:Mill has only examined the 368:The Groundwork of Economics 218:Marx's theory of alienation 113:The rationality implied in 10: 3068: 2930:Principal variation search 2646:Aumann's agreement theorem 2309:Strategy-stealing argument 2221:Trembling hand equilibrium 2151:Markov perfect equilibrium 2146:Mertens-stable equilibrium 1382:in: Marshall Sahlins (1972 1208:Medema, Steven G. (2019). 331:The use of the Latin form 31: 2966:Combinatorial game theory 2953: 2912: 2694: 2638: 2625:Princess and monster game 2420: 2322: 2229: 2181:Quasi-perfect equilibrium 2106:Bayesian Nash equilibrium 2087: 1986: 1909: 1856: 1820: 1774: 1470:Dahrendorf, Ralf (1965). 1266:Oxford English Dictionary 831:tradition, criticize the 354:Oxford English Dictionary 234:of economic rationality. 214:The Virtue of Selfishness 2981:Evolutionary game theory 2714:Antoine Augustin Cournot 2600:Guess 2/3 of the average 2397:Strictly determined game 2191:Satisfaction equilibrium 2009:Escalation of commitment 1398:The Great Transformation 996: 290:models, particularly in 264: 2986:Glossary of game theory 2585:Stackelberg competition 2211:Strong Nash equilibrium 1917:Consumers' co-operative 1797:Consumer culture theory 1429:The Enigma of the Gift. 1384:): Stone Age Economics. 955:Post-autistic economics 388:, the human genus name 321:widens the discussion. 133:which emphasizes human 18:Rationality (economics) 3047:Rational choice theory 3011:Tragedy of the commons 2991:List of game theorists 2971:Confrontation analysis 2681:Sprague–Grundy theorem 2201:Sequential equilibrium 2121:Correlated equilibrium 1879:Consumer socialization 1874:Consumer ethnocentrism 1787:Autonomous consumption 1418:London: Routledge 2006 1386:London: Routledge 2003 965:Rational choice theory 589:Behavioral economists 584:rational choice theory 451: 419: 380: 311:rational choice theory 255:rational choice theory 243:William Stanley Jevons 202: 175: 65:. It is a wordplay on 2784:Jean-François Mertens 1838:Consumer neuroscience 1411:Marcel Mauss (1924): 1395:Karl Polanyi (1944): 985:Rationality and power 908:Response to criticism 850:cultural anthropology 800:(associated with the 672:normative assumptions 565:Empirical studies by 447: 394: 372: 315:rational expectations 210:The Wealth of Nations 198: 193:The Wealth of Nations 170: 53:who are consistently 3037:Economic methodology 3032:Behavioral economics 2913:Search optimizations 2789:Jennifer Tour Chayes 2676:Revelation principle 2671:Purification theorem 2610:Nash bargaining game 2575:Bertrand competition 2560:El Farol Bar problem 2525:Electronic mail game 2490:Lewis signaling game 2034:Hierarchy of beliefs 1922:Consumer-to-business 1889:Consumption function 687:intrinsic motivation 683:extrinsic motivation 576:behavioral economics 517:ecological economics 142:behavioral economics 2961:Bounded rationality 2580:Cournot competition 2530:Rock paper scissors 2505:Battle of the sexes 2495:Volunteer's dilemma 2367:Perfect information 2294:Dominant strategies 2131:Epsilon-equilibrium 2014:Extensive-form game 1927:Factory-to-consumer 1864:Consumer confidence 1857:Consumer attributes 1792:Induced consumption 1657:Geoffrey Brennan: " 1600:10.1038/nature03701 1592:2005Natur.435..673K 1249:", Gdansk, 123–130. 1214:Sterling Publishing 980:Bounded rationality 914:bounded rationality 846:economic psychology 553:bounded rationality 533:John Maynard Keynes 160:History of the term 154:bounded rationality 92:perfect rationality 2940:Paranoid algorithm 2920:Alpha–beta pruning 2799:John Maynard Smith 2630:Rendezvous problem 2470:Traveler's dilemma 2460:Gift-exchange game 2455:Prisoner's dilemma 2372:Large Poisson game 2339:Bargaining problem 2244:Backward induction 2216:Subgame perfection 2171:Proper equilibrium 1869:Consumer confusion 1848:Marketing research 1833:Consumer economics 1768:Consumer behaviour 1696:2017-12-08 at the 1427:Maurice Godelier: 1376:2019-07-24 at the 1368:Marshall Sahlins: 1261:"Homo oeconomicus" 936:Consumer confusion 882:homines oeconomici 586:is only a subset. 539:, and many of the 485:through discussion 3019: 3018: 2925:Aspiration window 2894:Suzanne Scotchmer 2849:Oskar Morgenstern 2744:Donald B. Gillies 2686:Zermelo's theorem 2615:Induction puzzles 2570:Fair cake-cutting 2545:Public goods game 2475:Coordination game 2349:Intransitive game 2279:Forward induction 2161:Pareto efficiency 2141:Gibbs equilibrium 2111:Berge equilibrium 2059:Simultaneous game 1945: 1944: 1894:Cultural consumer 1812:Consumer spending 1647:978-88-6655-105-8 1586:(7042): 673–676. 1539:(16): 2539–2543. 1402:Beacon Press 2001 1223:978-1-4549-3008-2 931:Agent (economics) 854:social psychology 813:positive sum game 798:nucleus accumbens 773:prefrontal cortex 732:Homo sociologicus 719:Homo sociologicus 713:Homo sociologicus 506: 505: 382:According to the 366:in his 1883 work 358:cites the use of 345:John Kells Ingram 239:Francis Edgeworth 144:, which examines 73:economic theories 16:(Redirected from 3059: 3006:Topological game 3001:No-win situation 2899:Thomas Schelling 2879:Robert B. Wilson 2839:Merrill M. Flood 2809:John von Neumann 2719:Ariel Rubinstein 2704:Albert W. Tucker 2555:War of attrition 2515:Matching pennies 2156:Nash equilibrium 2079:Mechanism design 2044:Normal-form game 1999:Cooperative game 1972: 1965: 1958: 1949: 1948: 1932:Consumer service 1843:Consumer product 1807:Consumer economy 1761: 1754: 1747: 1738: 1737: 1730:using tenets of 1666: 1655: 1649: 1637:Caruso, Sergio: 1635: 1629: 1626: 1620: 1619: 1571: 1565: 1564: 1528: 1522: 1518: 1503: 1497: 1482: 1476: 1475: 1467: 1461: 1460: 1438: 1432: 1425: 1419: 1409: 1403: 1393: 1387: 1366: 1360: 1359: 1325: 1316: 1310: 1304: 1298: 1294: 1288: 1285: 1279: 1276: 1270: 1269: 1263: 1256: 1250: 1247:Homo Oeconomicus 1243: 1237: 1234: 1228: 1227: 1205: 1199: 1196: 1190: 1189: 1171: 1162: 1156: 1155: 1135: 1129: 1128: 1112: 1103: 1100: 1094: 1087: 1081: 1074: 1065: 1064: 1062: 1060: 1050: 1041: 1035: 1034: 1032: 1030: 1007: 975:Superrationality 970:Rational pricing 902:Homo reciprocans 876:admitted of the 790:substantia nigra 677:Swiss economist 644:Maurice Godelier 632:Marshall Sahlins 537:Herbert A. Simon 529:Thorstein Veblen 501: 498: 492: 466: 465: 458: 416:Homo turisticus. 376:Homo oeconomicus 360:Homo oeconomicus 302:utility function 166:John Stuart Mill 146:cognitive biases 129:Homo reciprocans 96:maximize utility 34:Homo Oeconomicus 21: 3067: 3066: 3062: 3061: 3060: 3058: 3057: 3056: 3022: 3021: 3020: 3015: 2949: 2935:max^n algorithm 2908: 2904:William Vickrey 2864:Reinhard Selten 2819:Kenneth Binmore 2734:David K. Levine 2729:Daniel Kahneman 2696: 2690: 2666:Negamax theorem 2656:Minimax theorem 2634: 2595:Diner's dilemma 2450:All-pay auction 2416: 2402:Stochastic game 2354:Mean-field game 2325: 2318: 2289:Markov strategy 2225: 2091: 2083: 2054:Sequential game 2039:Information set 2024:Game complexity 1994:Congestion game 1982: 1976: 1946: 1941: 1937:Consumerization 1905: 1900:Homo economicus 1884:Consumer's risk 1852: 1828:Consumer choice 1816: 1770: 1765: 1714: 1709: 1698:Wayback Machine 1675: 1670: 1669: 1656: 1652: 1636: 1632: 1627: 1623: 1572: 1568: 1529: 1525: 1507:Schmitz, Sigrid 1504: 1500: 1483: 1479: 1468: 1464: 1449: 1446:Wayback Machine 1439: 1435: 1426: 1422: 1410: 1406: 1394: 1390: 1378:Wayback Machine 1367: 1363: 1340:10.2307/2118511 1323: 1317: 1313: 1305: 1301: 1295: 1291: 1286: 1282: 1277: 1273: 1258: 1257: 1253: 1244: 1240: 1235: 1231: 1224: 1216:. p. 146. 1206: 1202: 1197: 1193: 1169: 1163: 1159: 1136: 1132: 1113: 1106: 1101: 1097: 1088: 1084: 1075: 1068: 1058: 1056: 1048: 1042: 1038: 1028: 1026: 1024: 1008: 1004: 999: 994: 949:Homo Sovieticus 926: 910: 886:Homo economicus 878:Homo economicus 842:Homo economicus 833:Homo economicus 825: 786:Homo economicus 769:corticosteroids 723:Ralf Dahrendorf 707:Homo economicus 703: 691:Homo economicus 660:Homo economicus 652:Homo economicus 628:Homo economicus 620:Shlomo Benartzi 599:economic agents 595:Daniel Kahneman 580:decision theory 545:Homo economicus 541:Austrian School 525: 509:Homo economicus 502: 496: 493: 482: 471:This article's 467: 463: 456: 436:omo economicus. 413:Homo insipiens; 333:Homo economicus 307:Homo economicus 298:Homo economicus 288:social sciences 270:Homo economicus 267: 251:Vilfredo Pareto 206:Homo economicus 196:, Smith wrote: 162: 150:irrationalities 124:Homo economicus 119:Homo economicus 115:Homo economicus 88:Homo economicus 71:, used in some 59:self-interested 42:Homo economicus 37: 28: 23: 22: 15: 12: 11: 5: 3065: 3055: 3054: 3049: 3044: 3039: 3034: 3017: 3016: 3014: 3013: 3008: 3003: 2998: 2993: 2988: 2983: 2978: 2973: 2968: 2963: 2957: 2955: 2951: 2950: 2948: 2947: 2942: 2937: 2932: 2927: 2922: 2916: 2914: 2910: 2909: 2907: 2906: 2901: 2896: 2891: 2886: 2881: 2876: 2871: 2869:Robert Axelrod 2866: 2861: 2856: 2851: 2846: 2844:Olga Bondareva 2841: 2836: 2834:Melvin Dresher 2831: 2826: 2824:Leonid Hurwicz 2821: 2816: 2811: 2806: 2801: 2796: 2791: 2786: 2781: 2776: 2771: 2766: 2761: 2759:Harold W. Kuhn 2756: 2751: 2749:Drew Fudenberg 2746: 2741: 2739:David M. Kreps 2736: 2731: 2726: 2724:Claude Shannon 2721: 2716: 2711: 2706: 2700: 2698: 2692: 2691: 2689: 2688: 2683: 2678: 2673: 2668: 2663: 2661:Nash's theorem 2658: 2653: 2648: 2642: 2640: 2636: 2635: 2633: 2632: 2627: 2622: 2617: 2612: 2607: 2602: 2597: 2592: 2587: 2582: 2577: 2572: 2567: 2562: 2557: 2552: 2547: 2542: 2537: 2532: 2527: 2522: 2520:Ultimatum game 2517: 2512: 2507: 2502: 2500:Dollar auction 2497: 2492: 2487: 2485:Centipede game 2482: 2477: 2472: 2467: 2462: 2457: 2452: 2447: 2442: 2440:Infinite chess 2437: 2432: 2426: 2424: 2418: 2417: 2415: 2414: 2409: 2407:Symmetric game 2404: 2399: 2394: 2392:Signaling game 2389: 2387:Screening game 2384: 2379: 2377:Potential game 2374: 2369: 2364: 2356: 2351: 2346: 2341: 2336: 2330: 2328: 2320: 2319: 2317: 2316: 2311: 2306: 2304:Mixed strategy 2301: 2296: 2291: 2286: 2281: 2276: 2271: 2266: 2261: 2256: 2251: 2246: 2241: 2235: 2233: 2227: 2226: 2224: 2223: 2218: 2213: 2208: 2203: 2198: 2193: 2188: 2186:Risk dominance 2183: 2178: 2173: 2168: 2163: 2158: 2153: 2148: 2143: 2138: 2133: 2128: 2123: 2118: 2113: 2108: 2103: 2097: 2095: 2085: 2084: 2082: 2081: 2076: 2071: 2066: 2061: 2056: 2051: 2046: 2041: 2036: 2031: 2029:Graphical game 2026: 2021: 2016: 2011: 2006: 2001: 1996: 1990: 1988: 1984: 1983: 1975: 1974: 1967: 1960: 1952: 1943: 1942: 1940: 1939: 1934: 1929: 1924: 1919: 1913: 1911: 1907: 1906: 1904: 1903: 1896: 1891: 1886: 1881: 1876: 1871: 1866: 1860: 1858: 1854: 1853: 1851: 1850: 1845: 1840: 1835: 1830: 1824: 1822: 1821:Research types 1818: 1817: 1815: 1814: 1809: 1804: 1799: 1794: 1789: 1784: 1778: 1776: 1772: 1771: 1764: 1763: 1756: 1749: 1741: 1735: 1734: 1721: 1713: 1712:External links 1710: 1708: 1707: 1701: 1683: 1676: 1674: 1671: 1668: 1667: 1650: 1630: 1621: 1566: 1523: 1498: 1477: 1462: 1433: 1420: 1404: 1388: 1361: 1311: 1299: 1289: 1280: 1271: 1251: 1238: 1229: 1222: 1200: 1191: 1157: 1146:(2): 150–158. 1130: 1104: 1095: 1082: 1066: 1036: 1022: 1001: 1000: 998: 995: 993: 992: 987: 982: 977: 972: 967: 962: 960:Rational agent 957: 952: 945: 938: 933: 927: 925: 922: 909: 906: 904:, and so on). 829:psychoanalytic 824: 821: 806:Mirror neurons 802:placebo effect 757:neuroeconomics 702: 699: 608:willing to pay 591:Richard Thaler 524: 521: 504: 503: 470: 468: 461: 455: 452: 429:omo economicus 266: 263: 259:Lionel Robbins 161: 158: 26: 9: 6: 4: 3: 2: 3064: 3053: 3050: 3048: 3045: 3043: 3040: 3038: 3035: 3033: 3030: 3029: 3027: 3012: 3009: 3007: 3004: 3002: 2999: 2997: 2994: 2992: 2989: 2987: 2984: 2982: 2979: 2977: 2974: 2972: 2969: 2967: 2964: 2962: 2959: 2958: 2956: 2954:Miscellaneous 2952: 2946: 2943: 2941: 2938: 2936: 2933: 2931: 2928: 2926: 2923: 2921: 2918: 2917: 2915: 2911: 2905: 2902: 2900: 2897: 2895: 2892: 2890: 2889:Samuel Bowles 2887: 2885: 2884:Roger Myerson 2882: 2880: 2877: 2875: 2874:Robert Aumann 2872: 2870: 2867: 2865: 2862: 2860: 2857: 2855: 2852: 2850: 2847: 2845: 2842: 2840: 2837: 2835: 2832: 2830: 2829:Lloyd Shapley 2827: 2825: 2822: 2820: 2817: 2815: 2814:Kenneth Arrow 2812: 2810: 2807: 2805: 2802: 2800: 2797: 2795: 2794:John Harsanyi 2792: 2790: 2787: 2785: 2782: 2780: 2777: 2775: 2772: 2770: 2767: 2765: 2764:Herbert Simon 2762: 2760: 2757: 2755: 2752: 2750: 2747: 2745: 2742: 2740: 2737: 2735: 2732: 2730: 2727: 2725: 2722: 2720: 2717: 2715: 2712: 2710: 2707: 2705: 2702: 2701: 2699: 2693: 2687: 2684: 2682: 2679: 2677: 2674: 2672: 2669: 2667: 2664: 2662: 2659: 2657: 2654: 2652: 2649: 2647: 2644: 2643: 2641: 2637: 2631: 2628: 2626: 2623: 2621: 2618: 2616: 2613: 2611: 2608: 2606: 2603: 2601: 2598: 2596: 2593: 2591: 2588: 2586: 2583: 2581: 2578: 2576: 2573: 2571: 2568: 2566: 2565:Fair division 2563: 2561: 2558: 2556: 2553: 2551: 2548: 2546: 2543: 2541: 2540:Dictator game 2538: 2536: 2533: 2531: 2528: 2526: 2523: 2521: 2518: 2516: 2513: 2511: 2508: 2506: 2503: 2501: 2498: 2496: 2493: 2491: 2488: 2486: 2483: 2481: 2478: 2476: 2473: 2471: 2468: 2466: 2463: 2461: 2458: 2456: 2453: 2451: 2448: 2446: 2443: 2441: 2438: 2436: 2433: 2431: 2428: 2427: 2425: 2423: 2419: 2413: 2412:Zero-sum game 2410: 2408: 2405: 2403: 2400: 2398: 2395: 2393: 2390: 2388: 2385: 2383: 2382:Repeated game 2380: 2378: 2375: 2373: 2370: 2368: 2365: 2363: 2361: 2357: 2355: 2352: 2350: 2347: 2345: 2342: 2340: 2337: 2335: 2332: 2331: 2329: 2327: 2321: 2315: 2312: 2310: 2307: 2305: 2302: 2300: 2299:Pure strategy 2297: 2295: 2292: 2290: 2287: 2285: 2282: 2280: 2277: 2275: 2272: 2270: 2267: 2265: 2264:De-escalation 2262: 2260: 2257: 2255: 2252: 2250: 2247: 2245: 2242: 2240: 2237: 2236: 2234: 2232: 2228: 2222: 2219: 2217: 2214: 2212: 2209: 2207: 2206:Shapley value 2204: 2202: 2199: 2197: 2194: 2192: 2189: 2187: 2184: 2182: 2179: 2177: 2174: 2172: 2169: 2167: 2164: 2162: 2159: 2157: 2154: 2152: 2149: 2147: 2144: 2142: 2139: 2137: 2134: 2132: 2129: 2127: 2124: 2122: 2119: 2117: 2114: 2112: 2109: 2107: 2104: 2102: 2099: 2098: 2096: 2094: 2090: 2086: 2080: 2077: 2075: 2074:Succinct game 2072: 2070: 2067: 2065: 2062: 2060: 2057: 2055: 2052: 2050: 2047: 2045: 2042: 2040: 2037: 2035: 2032: 2030: 2027: 2025: 2022: 2020: 2017: 2015: 2012: 2010: 2007: 2005: 2002: 2000: 1997: 1995: 1992: 1991: 1989: 1985: 1981: 1973: 1968: 1966: 1961: 1959: 1954: 1953: 1950: 1938: 1935: 1933: 1930: 1928: 1925: 1923: 1920: 1918: 1915: 1914: 1912: 1908: 1902: 1901: 1897: 1895: 1892: 1890: 1887: 1885: 1882: 1880: 1877: 1875: 1872: 1870: 1867: 1865: 1862: 1861: 1859: 1855: 1849: 1846: 1844: 1841: 1839: 1836: 1834: 1831: 1829: 1826: 1825: 1823: 1819: 1813: 1810: 1808: 1805: 1803: 1802:Consumer debt 1800: 1798: 1795: 1793: 1790: 1788: 1785: 1783: 1780: 1779: 1777: 1773: 1769: 1762: 1757: 1755: 1750: 1748: 1743: 1742: 1739: 1733: 1729: 1725: 1722: 1719: 1716: 1715: 1705: 1702: 1699: 1695: 1692: 1688: 1684: 1681: 1678: 1677: 1664: 1660: 1654: 1648: 1644: 1640: 1634: 1625: 1617: 1613: 1609: 1605: 1601: 1597: 1593: 1589: 1585: 1581: 1577: 1570: 1562: 1558: 1554: 1550: 1546: 1542: 1538: 1534: 1527: 1521: 1516: 1512: 1508: 1502: 1495: 1494:0-521-37523-1 1491: 1487: 1481: 1473: 1466: 1458: 1457: 1452: 1447: 1443: 1437: 1430: 1424: 1417: 1415: 1408: 1401: 1399: 1392: 1385: 1381: 1379: 1375: 1372: 1365: 1357: 1353: 1349: 1345: 1341: 1337: 1333: 1329: 1322: 1315: 1309: 1303: 1293: 1284: 1275: 1267: 1262: 1255: 1248: 1242: 1233: 1225: 1219: 1215: 1211: 1204: 1195: 1187: 1183: 1180:(1–2): 1–33. 1179: 1175: 1168: 1161: 1153: 1149: 1145: 1141: 1134: 1126: 1122: 1118: 1111: 1109: 1099: 1092: 1086: 1079: 1073: 1071: 1054: 1047: 1040: 1025: 1023:9781400837366 1019: 1015: 1014: 1006: 1002: 991: 988: 986: 983: 981: 978: 976: 973: 971: 968: 966: 963: 961: 958: 956: 953: 951: 950: 946: 944: 943: 939: 937: 934: 932: 929: 928: 921: 919: 915: 905: 903: 899: 895: 891: 887: 883: 879: 875: 871: 867: 863: 859: 855: 851: 847: 843: 838: 834: 830: 820: 818: 814: 811: 807: 803: 799: 795: 791: 787: 782: 778: 774: 770: 766: 762: 758: 753: 751: 747: 743: 739: 738: 734:is largely a 733: 729: 724: 720: 716: 714: 708: 698: 696: 695:craftsmanship 692: 688: 684: 680: 675: 673: 669: 665: 661: 657: 653: 649: 645: 641: 637: 633: 629: 623: 621: 617: 613: 612:Coase theorem 609: 605: 600: 596: 592: 587: 585: 581: 577: 572: 568: 563: 561: 560: 554: 550: 546: 542: 538: 534: 530: 520: 518: 512: 510: 500: 490: 486: 480: 479: 474: 469: 460: 459: 450: 446: 443: 439: 437: 435: 430: 428: 424: 418: 417: 414: 410: 406: 403: 402:Homo sapiens, 399: 393: 391: 387: 386: 379: 377: 371: 369: 365: 361: 357: 355: 351:(1888). The 350: 346: 342: 338: 334: 329: 327: 322: 320: 316: 312: 308: 303: 299: 295: 293: 289: 285: 284:institutional 281: 280: 275: 271: 262: 260: 256: 252: 248: 244: 240: 235: 232: 226: 222: 219: 215: 211: 207: 201: 197: 195: 194: 189: 188: 183: 179: 174: 169: 167: 157: 155: 151: 147: 143: 138: 136: 132: 130: 125: 120: 116: 111: 109: 105: 101: 97: 93: 89: 85: 80: 78: 74: 70: 69: 64: 60: 57:and narrowly 56: 52: 48: 44: 43: 35: 30: 19: 2859:Peyton Young 2854:Paul Milgrom 2769:HervĂ© Moulin 2709:Amos Tversky 2651:Folk theorem 2362:-player game 2359: 2284:Grim trigger 1899: 1898: 1686: 1662: 1653: 1638: 1633: 1624: 1583: 1579: 1569: 1536: 1532: 1526: 1514: 1501: 1485: 1480: 1471: 1465: 1454: 1442:Ghostarchive 1440:Archived at 1436: 1428: 1423: 1412: 1407: 1396: 1391: 1383: 1369: 1364: 1334:(1): 73–92. 1331: 1327: 1314: 1302: 1292: 1283: 1274: 1265: 1254: 1246: 1241: 1232: 1212:. New York: 1209: 1203: 1194: 1177: 1173: 1160: 1143: 1139: 1133: 1124: 1120: 1098: 1090: 1085: 1077: 1057:. 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Retrieved 1012: 1005: 947: 940: 911: 901: 897: 894:Homo loquens 893: 889: 885: 881: 877: 869: 868:concepts of 841: 836: 832: 826: 817:gift economy 808:result in a 785: 754: 746:sociologicus 745: 741: 735: 731: 727: 718: 711: 706: 704: 701:Sociologists 690: 676: 668:Axel Honneth 659: 656:gift economy 651: 640:Marcel Mauss 636:Karl Polanyi 627: 624: 603: 588: 567:Amos Tversky 564: 557: 544: 526: 513: 508: 507: 494: 475: 448: 440: 433: 432: 431:rather than 426: 425: 422: 420: 415: 412: 408: 404: 401: 395: 389: 383: 381: 375: 373: 367: 359: 352: 348: 341:economic man 340: 332: 330: 326:sociologists 323: 306: 297: 296: 279:Homo sapiens 277: 269: 268: 236: 227: 223: 213: 209: 205: 203: 199: 191: 185: 180: 176: 171: 163: 139: 127: 123: 118: 114: 112: 91: 87: 81: 68:Homo sapiens 66: 47:economic man 46: 41: 40: 38: 29: 3052:Game theory 2976:Coopetition 2779:Jean Tirole 2774:John Conway 2754:Eric Maskin 2550:Blotto game 2535:Pirate game 2344:Global game 2314:Tit for tat 2249:Bid shading 2239:Appeasement 2089:Equilibrium 2069:Solved game 2004:Determinacy 1987:Definitions 1980:game theory 1782:Consumption 1732:natural law 1691:read online 1685:J.S. Mill, 1533:NeuroReport 1055:. p. 2 1046:"Chapter 6" 942:Homo duplex 898:Homo ludens 765:epinephrine 737:tabula rasa 664:Amartya Sen 648:reciprocity 582:, of which 549:uncertainty 527:Economists 442:Amartya Sen 364:C. S. Devas 319:rationality 247:LĂ©on Walras 178:obtained." 135:cooperation 84:game theory 3026:Categories 2620:Trust game 2605:Kuhn poker 2274:Escalation 2269:Deterrence 2259:Cheap talk 2231:Strategies 2049:Preference 1978:Topics of 1673:References 890:Homo faber 870:Idealtypus 750:socialites 742:economicus 679:Bruno Frey 559:Homo agens 543:criticise 523:Economists 478:neutrality 454:Criticisms 409:Homo faber 396:Used with 182:Adam Smith 148:and other 2804:John Nash 2510:Stag hunt 2254:Collusion 1910:Processes 1728:free will 1680:J.S. Mill 777:Serotonin 730:say that 604:Anomalies 571:investors 556:tool the 497:June 2021 489:talk page 292:economics 152:, and to 63:optimally 39:The term 2945:Lazy SMP 2639:Theorems 2590:Deadlock 2445:Checkers 2326:of games 2093:concepts 1775:Concepts 1704:A.K. Sen 1694:Archived 1608:15931222 1561:13127406 1553:15538191 1444:and the 1414:The Gift 1374:Archived 1356:55030273 1297:141–172. 1059:June 20, 924:See also 862:Korsch's 796:and the 794:striatum 781:oxytocin 761:cortisol 356:(O.E.D.) 108:producer 100:consumer 77:pedagogy 55:rational 2697:figures 2480:Chicken 2334:Auction 2324:Classes 1616:1234727 1588:Bibcode 1456:YouTube 1348:2118511 1127:: 2–29. 1029:22 June 874:Gramsci 866:Fromm's 858:Weber's 810:win-win 487:on the 75:and in 1665:(1997) 1661:" in: 1645:  1614:  1606:  1580:Nature 1559:  1551:  1492:  1354:  1346:  1220:  1020:  864:, and 852:, and 792:, the 728:et al. 337:Pareto 249:, and 104:profit 51:agents 2435:Chess 2422:Games 1612:S2CID 1557:S2CID 1352:S2CID 1344:JSTOR 1324:(PDF) 1170:(PDF) 1049:(PDF) 997:Notes 837:e.g., 423:i.e., 405:etc., 274:model 265:Model 184:, in 106:as a 98:as a 45:, or 2116:Core 1643:ISBN 1604:PMID 1549:PMID 1520:Pdf. 1490:ISBN 1218:ISBN 1061:2012 1031:2018 1018:ISBN 918:envy 779:and 767:and 666:and 642:and 593:and 551:and 390:Homo 313:and 173:end. 102:and 2695:Key 1596:doi 1584:435 1541:doi 1336:doi 1332:110 1182:doi 1148:doi 1144:123 392:is 385:OED 362:by 347:'s 276:of 257:of 82:In 3028:: 2430:Go 1610:. 1602:. 1594:. 1582:. 1578:. 1555:. 1547:. 1537:15 1535:. 1513:. 1453:. 1448:: 1350:. 1342:. 1330:. 1326:. 1264:. 1178:92 1176:. 1172:. 1142:. 1123:. 1119:. 1107:^ 1069:^ 1051:. 900:, 896:, 892:, 860:, 763:, 744:, 638:, 634:, 562:. 535:, 531:, 398:L. 294:. 245:, 241:, 137:. 86:, 79:. 2360:n 1971:e 1964:t 1957:v 1760:e 1753:t 1746:v 1700:) 1618:. 1598:: 1590:: 1563:. 1543:: 1496:) 1459:. 1400:. 1380:, 1358:. 1338:: 1268:. 1226:. 1188:. 1184:: 1154:. 1150:: 1125:7 1063:. 1033:. 715:, 499:) 495:( 491:. 481:. 434:h 427:H 131:, 36:. 20:)

Index

Rationality (economics)
Homo Oeconomicus
agents
rational
self-interested
optimally
Homo sapiens
economic theories
pedagogy
game theory
maximize utility
consumer
profit
producer
Homo reciprocans
cooperation
behavioral economics
cognitive biases
irrationalities
bounded rationality
John Stuart Mill
Adam Smith
The Theory of Moral Sentiments
The Wealth of Nations
Marx's theory of alienation
English Historical School of Economics
Francis Edgeworth
William Stanley Jevons
LĂ©on Walras
Vilfredo Pareto

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