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Does optimization imply rationality ?

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  • P. Mongin

Abstract

The relations between rationality and optimization have been widely discussed in the wake of Herbert Simon's work, with the common conclusion that the rationality concept does not imply the optimization principle. The paper is partly concerned with adding evidence for this view, but its main, more challenging objective is to question the converse implication from optimization to rationality, which is accepted even by bounded rationality theorists. We discuss three topics in succession: (1) rationally defensible cyclical choices, (2) therevealed preference theory of optimization, and (3) the infinite regress of optimization. We conclude that (1) and (2) provide evidence only for the weak thesis that rationality does not imply optimization. But (3) is seen to deliver a significant argument for the strong thesis that optimization does not imply rationality.
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Suggested Citation

  • P. Mongin, 1998. "Does optimization imply rationality ?," THEMA Working Papers 98-17, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:98-17
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    References listed on IDEAS

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    1. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    2. McClennen,Edward F., 1990. "Rationality and Dynamic Choice," Cambridge Books, Cambridge University Press, number 9780521360470, January.
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    6. Frédéric Laville, 1998. "Modélisations de la rationalité limitée : de quels outils dispose-t-on ?," Revue Économique, Programme National Persée, vol. 49(2), pages 335-365.
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    9. LISMONT, Luc & MONGIN, Philippe, 1994. "On the Logic of Common Belief and Common Knowledge," LIDAM Discussion Papers CORE 1994005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. ., 1994. "Technical Change and Technological Regimes," Chapters, in: Geoffrey M. Hodgson & Warren J. Samuels & Marc R. Tool (ed.), The Elgar Companion to Institutional and Evolutionary Economics, volume 0, chapter 127, Edward Elgar Publishing.
    11. Plott, Charles R, 1973. "Path Independence, Rationality, and Social Choice," Econometrica, Econometric Society, vol. 41(6), pages 1075-1091, November.
    12. Anand, Paul, 1993. "The Philosophy of Intransitive Preference," Economic Journal, Royal Economic Society, vol. 103(417), pages 337-346, March.
    13. Philippe Mongin, 1984. "Modèle rationnel ou modèle économique de la rationalité ?," Revue Économique, Programme National Persée, vol. 35(1), pages 9-64.
    14. Gordon Tullock, 1964. "The Irrationality Of Intransitivity," Oxford Economic Papers, Oxford University Press, vol. 16(3), pages 401-406.
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    18. Amartya K. Sen, 1971. "Choice Functions and Revealed Preference," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(3), pages 307-317.
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    Cited by:

    1. Marc Fleurbaey & Philippe Mongin, 2005. "The news of the death of welfare economics is greatly exaggerated," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 25(2), pages 381-418, December.
    2. Francesco GUALA, 2017. "Preferences: Neither Behavioural nor Mental," Departmental Working Papers 2017-05, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. Paola Manzini & Marco Mariotti, 2003. "How vague can one be? Rational preferences without completeness or transitivity," Game Theory and Information 0312006, University Library of Munich, Germany, revised 16 Jul 2004.
    4. Jean Baccelli & Marcus Pivato, 2021. "Philippe Mongin (1950–2020)," Theory and Decision, Springer, vol. 90(1), pages 1-9, February.
    5. Wei Pan & Yi-Shin Chen, 2018. "Network approach for decision making under risk—How do we choose among probabilistic options with the same expected value?," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-19, April.
    6. Jean-Sébastien Lenfant, 2018. "Probabilising the consumer: Georgescu-Roegen, Marschak and Quandt on the modelling of the consumer in the 1950s," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 25(1), pages 36-72, January.
    7. Fumagalli, Roberto, 2021. "Rationality, preference satisfaction and anomalous intentions: why rational choice theory is not self-defeating," LSE Research Online Documents on Economics 112446, London School of Economics and Political Science, LSE Library.
    8. Philippe Mongin, 2007. "L'a priori et l'a posteriori en économie," Recherches économiques de Louvain, De Boeck Université, vol. 73(1), pages 5-53.
    9. Michaël Lainé, 2014. "Vers une alternative au paradigme de la rationalité ? Victoires et déboires du programme spinoziste en économie," Post-Print hal-04264939, HAL.
    10. Alexandre Chirat & Michaël Assous & Olivier Brette & Judith Favereau, 2022. "Herbert Simon’s experience at the Cowles Commission (1947–1954)," EconomiX Working Papers 2022-11, University of Paris Nanterre, EconomiX.
    11. Roberto Fumagalli, 2021. "Rationality, preference satisfaction and anomalous intentions: why rational choice theory is not self-defeating," Theory and Decision, Springer, vol. 91(3), pages 337-356, October.
    12. Michaël Lainé, 2014. "Vers une alternative au paradigme de la rationalité ? Victoires et déboires du programme spinoziste en économie," Post-Print hal-01335618, HAL.

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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