Walter Eucken Institut ORDO Constitutio in Libertate The Rationality Postulate in Economics: Its Ambiguity, its Deficiency and its Evolutionary Alternative Viktor J. Vanberg 03/3 Freiburger Diskussionspapiere zur Ordnungsökonomik Freiburg Discussion Papers on Constitutional Economics Institut für Allgemeine Wirtschaftsforschung Abteilung für Wirtschaftspolitik Albert-Ludwigs-Universität Freiburg i. Br. ISSN 1437-1510 The Rationality Postulate in Economics: Its Ambiguity, its Deficiency and its Evolutionary Alternative Viktor J. Vanberg 03/3 Albert-Ludwigs-Universität Freiburg und Walter Eucken Institut, Freiburg
[email protected] Freiburger Diskussionspapiere zur Ordnungsökonomik Freiburg Discussionpapers on Constitutional Economics 03/3 ISSN 1437-1510 Walter Eucken Institut, Goethestr. 10, D-79100 Freiburg i. Br. Tel.Nr.: +49 +761 / 79097 0; Fax.Nr.: +49 +761 / 79097 97 http://www.walter-eucken-institut.de Institut für Allgemeine Wirtschaftsforschung; Abteilung für Wirtschaftspolitik; Albert-Ludwigs-Universität Freiburg, D-79085 Freiburg i. Br. Tel.Nr.: +49 +761 / 203 2317; Fax.Nr.: +49 +761 / 203 2322 http://www.vwl.uni-freiburg.de/fakultaet/wipo/ The Rationality Postulate in Economics: Its Ambiguity, its ∗ Deficiency and its Evolutionary Alternative by Viktor J. Vanberg Albert-Ludwigs-Universität Freiburg Wirtschafts- und Verhaltenswissenschaftliche Fakultät Abteilung Wirtschaftspolitik und Walter Eucken Institut 1. Introduction 2. Rationality Principle vs. Rationality Hypotheses 3. Gary S. Becker’s Economic Approach to Human Behavior: Rationality Principle or Rationality Hypothesis? 4. The ‘Economic Approach’ Between Rationality Principle and Rationality Hypotheses 5. An Evolutionary Alternative to the Rational Choice Paradigm 6. J.H. Holland’s Theory of Rule-Based Adaptive Agents 7. Rationality and Markets 8. Conclusion Abstract: Though the rationality postulate is generally considered the paradigmatic core of economics, there is little agreement about its specific content and methodological status.