THE EARLY MODERN ORIGINS OF BEHAVIORAL ECONOMICS

2020 ◽  
Vol 37 (1) ◽  
pp. 30-54
Author(s):  
Richard Boyd
Keyword(s):  
Social Sciences ◽  
Early Modern ◽  
Cognitive Biases ◽  
Adam Smith ◽  
Francis Bacon ◽  
Economic Rationality ◽  
Homo Economicus ◽  
Behavioral Psychology ◽  
Human Conduct ◽  
The Social

AbstractFor all the recent discoveries of behavioral psychology and experimental economics, the spirit of homo economicus still dominates the contemporary disciplines of economics, political science, and sociology. Turning back to the earliest chapters of political economy, however, reveals that pioneering figures such as Francis Bacon, Thomas Hobbes, and Adam Smith were hardly apostles of economic rationality as they are often portrayed in influential narratives of the development of the social sciences. As we will see, while all three of these thinkers can plausibly be read as endorsing “rationality,” they were also well aware of the systematic irrationality of human conduct, including a remarkable number of the cognitive biases later “discovered” by contemporary behavioral economists. Building on these insights I offer modest suggestions for how these thinkers, properly understood, might carry the behavioral revolution in different directions than those heretofore suggested.

Rationality and social norms

1991 ◽  
Vol 32 (1) ◽  
pp. 109-129 ◽  
Author(s):  
Jon Elster
Keyword(s):  
Social Sciences ◽  
Social Norms ◽  
Adam Smith ◽  
Instrumental Rationality ◽  
Emile Durkheim ◽  
Inertial Forces ◽  
Social Forces ◽  
Homo Economicus ◽  
The Social

One of the most persisting cleavages in the social sciences is the opposition between two lines of thought conveniently associated with Adam Smith and Émile Durkheim, between homo economicus and homo sociologicus. Of these, the former is supposed to be guided by instrumental rationality, while the behavior of the latter is dictated by social norms. The former is ‘pulled’ by the prospect of future rewards, whereas the latter is ‘pushed’ from behind by quasi-inertial forces (Gambetta 1987). The former adapts to changing circumstances, always on the lookout for improvements. The latter is insensitive to circumstances, adhering to the prescribed behavior even if new and apparently better options become available. The former is easily caricatured as a self-contained, asocial atom, and the latter as the mindless plaything of social forces. In this paper I characterize this contrast more fully, and discuss attempts to reduce norm-oriented action to some type of optimizing behavior.

scholarly journals Social Norms and Economic Theory

1989 ◽  
Vol 3 (4) ◽  
pp. 99-117 ◽  
Author(s):  
Jon Elster
Keyword(s):  
Social Sciences ◽  
Economic Theory ◽  
Social Norms ◽  
Adam Smith ◽  
Emile Durkheim ◽  
Homo Economicus ◽  
The Social ◽  
Self Interest ◽  
Common Interests ◽  
Genetic Fitness

One of the most persistent cleavages in the social sciences is the opposition between two lines of thought conveniently associated with Adam Smith and Emile Durkheim, between homo economicus and homo sociologicus. Of these, the former is supposed to be guided by instrumental rationality, while the behavior of the latter is dictated by social norms. In this paper I characterize this contrast more fully, and discuss attempts by economists to reduce normoriented action to some type of optimizing behavior. Social norms, as I understand them here, are emotional and behavioral propensities of individuals. Are norms rationalizations of self-interest? Are norms followed out of self-interest? Do norms exist to promote self-interest? Do norms exist to promote common interests? Do norms exist to promote genetic fitness?

Cognitive Bias in Intelligence Analysis

2020 ◽  
Author(s):  
Martha Whitesmith
Keyword(s):  
Social Sciences ◽  
Cognitive Bias ◽  
Cognitive Biases ◽  
Risk Mitigation ◽  
Meta Analysis ◽  
Intelligence Analysis ◽  
Experimental Setting ◽  
Alternative Approach ◽  
The Social ◽  
Underlying Causes

Belief, Bias and Intelligence outlines an approach for reducing the risk of cognitive biases impacting intelligence analysis that draws from experimental research in the social sciences. It critiques the reliance of Western intelligence agencies on the use of a method for intelligence analysis developed by the CIA in the 1990’s, the Analysis of Competing Hypotheses (ACH). The book shows that the theoretical basis of the ACH method is significantly flawed, and that there is no empirical basis for the use of ACH in mitigating cognitive biases. It puts ACH to the test in an experimental setting against two key cognitive biases with unique empirical research facilitated by UK’s Professional Heads of Intelligence Analysis unit at the Cabinet Office, includes meta-analysis into which analytical factors increase and reduce the risk of cognitive bias and recommends an alternative approach to risk mitigation for intelligence communities. Finally, it proposes alternative models for explaining the underlying causes of cognitive biases, challenging current leading theories in the social sciences.

Adam Smith and the Buddha

2018 ◽  
Vol 31 (1) ◽  
pp. 3-39 ◽  
Author(s):  
Ronald Wintrobe
Keyword(s):  
Social Sciences ◽  
Adam Smith ◽  
Zen Buddhism ◽  
The Core ◽  
Human Happiness ◽  
The Social ◽  
Way Of Thinking ◽  
Economic Thinking ◽  
The Buddha ◽  
Simple Economic

Economics is a powerful way of thinking. While there may occasionally be major errors in its application, at its core the principles of economics remain the strongest paradigm in the social sciences. Buddhism is also a powerful way of thinking. The central question in Buddhist philosophy is the same as that in economics: what is the key to human happiness? How can human suffering be reduced? But the answer to this question in the Buddhist way of thinking is exactly the opposite of that given by economics. Can Adam Smith learn from the Buddha? Can Buddhism learn from economics? This essay explores these topics. I first present an interpretation of what I take to be the core of Buddhist thinking in economic terms, and then show how that could be incorporated into economic thinking, and how economics would change as a result. I then try to do the reverse, and show how the economic way of thinking can clarify Buddhist thinking. I apply simple economic theory to develop a model of rational Zen Buddhism.

The Evolution of an Idea

2020 ◽  
pp. 29-47
Author(s):  
Dominic D. P. Johnson
Keyword(s):  
Social Sciences ◽  
International Relations ◽  
Evolutionary Biology ◽  
Cognitive Biases ◽  
Evolutionary Approach ◽  
Psychological Phenomena ◽  
Selective Pressures ◽  
The Social ◽  
History Of ◽  
The Brain

This chapter considers how and why international relations might benefit from an evolutionary approach. It explains the evolutionary biology's long history of misunderstanding and resistance in the social sciences since the “sociobiology” debate of the 1970s. It also reviews how the natural and social sciences have both moved on since the 1970s, including the promise for a future of mutual collaboration on strategic instincts. The chapter focuses on evolutionary biology to understand the origins and functions of cognitive biases and comprehend the selective pressures that shaped the brain in the first place. It addresses the question of whether psychological phenomena originate from nature or nurture.

Some Reflections on the Pre-Industrial City

Urban History ◽  
1975 ◽  
Vol 2 ◽  
pp. 13-21 ◽  
Author(s):  
Peter Burke
Keyword(s):  
Social Sciences ◽  
Early Modern ◽  
Economic History ◽  
Early Modern Europe ◽  
Industrial City ◽  
The Social ◽  
Tribal Societies ◽  
History Of ◽  
History Of Europe ◽  
The City

In the last few years, a new word has gained popularity among historians: ‘pre-industrial’. Specialists in the social and economic history of Europe before 1800 have become increasingly aware that the object of their studies is simply one case among others of what sociologists call ‘traditional society’, and that it is easier to understand traditional or pre-industrial Europe if it is compared and contrasted with other societies of this type. Thus Keith Thomas and Alan Macfarlane have illuminated English witchcraft by making comparisons with witchcraft in African tribal societies, while Frédéric Mauro and Witold Kula, among others, have compared the economies of early modern Europe with those of the developing countries today. Even Richard Cobb, no great friend to the social sciences, has recorded that he came to understand eighteenth-century Paris better after visiting contemporary Calcutta. In fact, the city is an obvious and splendidly tangible unit of comparison, and it is not surprising that the term ‘pre-industrial city’ is passing into general use.

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