A bounded rationality assessment of the new behavioral economics

Research output: Chapter in Book/Report/Conference proceedingChapter

12 Citations (Scopus)


I explore the evolution of behavioral economics, from a multidisciplinary rational agent or bounded rationality approach that was pioneered and championed by Herbert Simon (1959, 1978, 1987) from the 1950s, to the heuristics and biases approach that currently dominates the field. I argue that although the heuristics and biases approach pioneered by Kahneman and Tversky (1979; Kahneman, 2003, 2011; Tversky and Kahneman, 1981) has made significant contributions to the field, the bounded rationality approach holds most promise because of its focus on methodology and related causal analyses and modeling, smart decision-makers, capa- bilities, and institutional design.
Original languageEnglish
Title of host publicationRoutledge Handbook of Behavioral Economics
PublisherTaylor & Francis
Number of pages15
ISBN (Electronic)9781315743479
ISBN (Print)9781138821149
Publication statusPublished - 5 Aug 2016

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • General Business,Management and Accounting


Dive into the research topics of 'A bounded rationality assessment of the new behavioral economics'. Together they form a unique fingerprint.

Cite this