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Article
Welfare economics and bounded rationality: the case for model-based approaches
Journal of Economic Methodology (2014)
  • Paola Manzini, University of St Andrews
  • Marco Mariotti
Abstract
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.
Keywords
  • bounded rationality,
  • welfare,
  • choice theory
Publication Date
2014
DOI
10.1080/1350178X.2014.965909
Publisher Statement
http://www.tandfonline.com/doi/abs/10.1080/1350178X.2014.965909
Citation Information
Paola 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/
Creative Commons license
Creative Commons License
This work is licensed under a Creative Commons CC_BY-NC-ND International License.