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Reappraisal of Rational Choice Theory

Author

Listed:
  • Katalin Martinas

    (Department of Atomic Physics, Eötvös Loránd University)

  • Agoston Reguly

    (Budapest University of Technology and Economics)

Abstract

The value of rational choice theory (RCT) for the social sciences has long been contested. Much time has been spent by economists and critics on the pervasive but elusive concept of rationality. The critiques mainly challenge the basis of the utility theorem. Several articles on the misuse of mathematics in economics have already appeared in the literature. As N. Bouleau stated, "On several occasions, however, one feels that the criticism is that the math is being misused and should be developed in some other direction (e.g. a statistical analysis of the financial tendencies that polarize wealth and income, or a study of the positive feedback mechanisms, etc.). This leaves certain dissatisfaction - on a philosophical level." The aim of this paper is to present a decision theory, yields intention (logos) and valuation (existence). Here we present a new mathematical representation of RCT, which leads to a dynamic economic theory. We discuss the philosophical or meta-economical problems, which are needed for the successful applications of mathematics.

Suggested Citation

  • Katalin Martinas & Agoston Reguly, 2013. "Reappraisal of Rational Choice Theory," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 11(1), pages 14-28.
    • Handle: RePEc:zna:indecs:v:11:y:2013:i:1:p:14-28
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    References listed on IDEAS

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    1. Viktor Vanberg, 2004. "The rationality postulate in economics: its ambiguity, its deficiency and its evolutionary alternative," Journal of Economic Methodology, Taylor & Francis Journals, vol. 11(1), pages 1-29.
    2. Serghey A. Amelkin, 2009. "Finite-Time Approach to Microeconomic and Information Exchange Processes," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 7(1), pages 8-13.
    3. Anatoly M. Tsirlin & Vladimir A. Kazakov, 2004. "Optimal Processes in Irreversible Thermodynamics and Microeconomics," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 2(1), pages 29-42.
    4. S. A. Amelkin, 2004. "Limiting Possibilities of Resource Exchange Process in Complex Open Microeconomic System," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 2(1), pages 43-52.
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    More about this item

    Keywords

    rational choice theory; dynamic economic theory;

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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