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Preference purification and the inner rational agent: a critique of the conventional wisdom of behavioural welfare economics

Author

Listed:
  • Gerardo Infante

    (UEA - University of East Anglia [Norwich])

  • Guilhem Lecouteux

    (X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris)

  • Robert Sugden

    (UEA - University of East Anglia [Norwich])

Abstract

Neoclassical economics assumes that individuals have stable and context-independent preferences, and uses preference satisfaction as a normative criterion. By calling this assumption into question, behavioural findings cause fundamental problems for normative economics. A common response to these problems is to treat deviations from conventional rational choice theory as mistakes, and to try to reconstruct the preferences that individuals would have acted on, had they reasoned correctly. We argue that this preference purification approach implicitly uses a dualistic model of the human being, in which an inner rational agent is trapped in an outer psychological shell. This model is psychologically and philosophically problematic.

Suggested Citation

  • Gerardo Infante & Guilhem Lecouteux & Robert Sugden, 2016. "Preference purification and the inner rational agent: a critique of the conventional wisdom of behavioural welfare economics," Post-Print halshs-01427046, HAL.
    • Handle: RePEc:hal:journl:halshs-01427046
    DOI: 10.1080/1350178X.2015.1070527
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01427046
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    More about this item

    Keywords

    preference purification; inner rational agent; behavioural welfare economics; libertarian paternalism; context-dependent preferences;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D60 - Microeconomics - - Welfare Economics - - - General

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