Theconsistencyandecological rationalityapproaches to normative bounded rationality

Nathan Berg
2014 Journal of Economic Methodology  
This paper focuses on tacit versus explicit uses of plural performance metrics as a primary methodological characteristic. This characteristic usefully distinguishes two schools of normative analysis and their approaches to normative interpretations of bounded rationality. Both schools of thought make normative claims about bounded rationality by comparing the performance of decision procedures using more than one performance metric. The consistency school makes tacit reference to performance
more » ... trics outside its primary axiomatic framework, but lexicographically promotes internal axiomatic consistency as the primary, and in most cases sufficient, normative outcome with which to undertake welfare comparisons. The consistency school's axiomatization program, in both neoclassical and behavioral forms, pre-commits to welfare interpretations that follow a hierarchy of rationalities based on the stringency of restrictions that different axiomatizations impose on choice data. In contrast, the ecological rationality school explicitly adopts multiple, domain-specific performance metrics, reflecting the view that adequate descriptions of well-being are irreducibly multivariate (i.e., non-scalar). -MOHANRAJ.D-496300---Style 2 N. Berg 20 932 933 934 935 936 937 938 939 940 941 942 943 944 945 946 947 948 949 950 951 952 953 954 955 956 957 958 959 960 961 962 963 964 965 966 967 968 969 970 971 972 973 974 975 976 977
doi:10.1080/1350178x.2014.969910 fatcat:euc5tdk63zccbf3h2ndkh22e2u