Re: People who think that "rational economic man" is sociopathic might find this a bit humorous

[Michael Nuwer <nuwermj@xxxxxxxxx>]

--- Jim Devine <jdevine03@xxxxxxxxx> wrote:

> On 1/15/06, Michael Nuwer <nuwermj@xxxxxxxxx> wrote:
> > Jim, what is it that like about Heyne's book?
>
> I _don't_ like Heyne's book.

Yes, I did understand that :-).

> Rather, it's the idea
> of having a small
> list of aspects to a "way of thinking" that I think
> may be useful.

Institutionalist(the old ones) and some Post Keynesian
have proposed some or all of the following:

(i) the principle of procedural rationality,
(ii) the principle of satiable needs,
(iii) the principle of separability of needs,
(iv) the principle of subordination of needs,
(v) the principle of the growth of needs,
(vi) the principle of non-independence.

The "ways of thinking" that derive from these
principles might include satisfying and threshold
levels, hierarchic and lexicographic preferences, and
invidious comparisons (like snob and bandwagon
effects).

Are these the type of things you have in mind?


>
> the guy's (Heyne's) never heard of external costs?

As far as I can tell, Austrian's deny that external
costs exist. They maintain a radical adherence to the
concept of subjective valuation. For them prices and
values are not the same, and it therefore follows that
economics "cannot pronounce on the relative efficiency
of alternative arrangements."

This, of course, is the tautological view at its
finest ;-)

Michael Nuwer




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