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THE ECONOMICS OF RATIONALITY
THE ECONOMICS OF
RATIONALITY
The concept of the rational economic agent is at the heart of modern economics.
Mainstream economic theory seems unable to develop without the assumption that agents
proceed by finding the optimal means to a well-defined end. Yet despite its centrality
many economists find this concept of rationality of little use when trying to explain a
wide range of economic phenomena.
This volume contains a number of critical perspectives on the treatment of rationality
in economics. They are drawn from a variety of subdisciplines within economics. Insights
from such diverse areas as game theory, experimental economics, psychology, post-
Keynesian and institutional economics cast considerable doubt on whether a unitary
conception of rationality within economics is possible or indeed desirable.
Bill Gerrard
is a Lecturer in Economics at the University of York. He has previously
held positions at the Universities of Leeds and Manitoba and at Unilever plc. He has
written in a number of key areas of economics: methodology, macroeconomics, the
economics of J.M.Keynes and industrial economics. His publications include
The Theory
of the Capitalist Economy
(Blackwell 1989) and a co-edited collection of essays on
Keynes.
THE ECONOMICS OF
RATIONALITY
Edited by
Bill Gerrard
London and New York
First published 1993 by Routledge 11 New Fetter Lane, London EC4P 4EE
This edition published in the Taylor & Francis e-Library, 2006.
“To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of
thousands of eBooks please go to http://www.ebookstore.tandf.co.uk/.”
Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York,
NY 10001
© 1993 Bill Gerrard
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or
by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or retrieval system, without permission
in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue reference for this book is available
from the British Library
ISBN 0-415-06875-4
Library of Congress Cataloging in Publication Data has been applied for.
ISBN 0-203-01002-7 Master e-book ISBN
ISBN 0-203-15114-3 (Adobe e-Reader Format)
ISBN 0-415-06875-4 (Print Edition)
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