…I decide again that expected future income (which must be positively correlated with achieved future income) doesn’t have much effect (this is consistent with full rationality if it is very…

…rationality is based on extreme irrationality. In particular I know for a fact that a high ratio of consumption to disposable income is not correlated with high growth of disposable…

…equilibrium and macroeconomic theory concerns convergence to this equilibrium. This is not at all an implication of core assumptions of rationality and intertemporal optimization. It is a standard feature of…

…exchange for a decrease in total income. Beyond b, the incomes of both workers and employers are reduced. The four phases of working time can be labeled cooperation, exploitation, immiseration and…

…nuts to play it any other way (if you go with economists’ definition of rationality…). But for the rest of us, it’s a loser’s game — at least compared to…

…supposedly “father” behavioral econ, Herbert Simon received the Nobel for discovering “bounded rationality.” He also coined the term “behavioral economics,” and given its then still unacceptability, his award was criticized…

…Top wealth-holders would be nuts to play it any other way (if you go with economists’ definition of rationality…). But for the rest of us, it’s a loser’s game —…

…harmonization, appropriate allocation, and hence social rationality, and that it demands to be represented in a coherent, systematic way.” At the core of such representations is the notion of individual…

…this doesn’t even have to be irrational — if there are multiple Nash equilibria assuming even Magic Nash rationality isn’t enough to rule out the possibility — a self fulfilling…

…a paper in my journal, ROBE, on their general themes, which draw on ideas of Herbert Simon and his bounded rationality. In particular Gigerenzer pointed out lots of cases where…