Welfare economics and bounded rationality: the case for model-based approachesJournal of Economic Methodology (2014)
In this paper, we examine the problems facing a policy maker who observes inconsistent choices made by agents who are boundedly rational. We contrast a model-less and a model-based approach to welfare economics. We make the case for the model-based approach and examine its advantages as well as some problematic issues associated with it.
- bounded rationality,
- choice theory
Citation InformationPaola Manzini and Marco Mariotti. "Welfare economics and bounded rationality: the case for model-based approaches" Journal of Economic Methodology Vol. 21 Iss. 4 (2014) p. 343 - 360
Available at: http://works.bepress.com/paola-manzini/6/
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