Looking for a Psychology for the Inner Rational Agent.

Research in psychology and behavioral economics shows that individuals' choices often depend on "irrelevant" contextual factors. This presents problems for normative economics, which has traditionally used preference-satisfaction as its criterion. A common response is to claim that individuals have...

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Published in:Social Theory & Practice Vol. 41; no. 4; pp. 579 - 599
Main Author: Sugden, Robert
Format: Article
Published: Florida State University Oct2015
Subjects:
Online Access:View this record in EBSCOhost
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      pub: Florida State University
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        atl: Looking for a Psychology for the Inner Rational Agent.
      aug:
        au: Sugden, Robert
        affil: Centre for Behavioural and Experimental Social Science, and School of Economics, University of East Anglia
      su:
        Psychological research
        Satisfaction
        Social theory
        Behavioral economics
        Normative economics
      sug:
        subj:
          Psychological research
          Satisfaction
          Social theory
          Research and Development in the Social Sciences and Humanities
          Behavioral economics
          Normative economics
      keyword:
        attention
        behavioral welfare economics
        inner rational agent
        preference purification
        true self
        attention
        behavioral welfare economics
        inner rational agent
        preference purification
        true self
      ab: Research in psychology and behavioral economics shows that individuals' choices often depend on "irrelevant" contextual factors. This presents problems for normative economics, which has traditionally used preference-satisfaction as its criterion. A common response is to claim that individuals have context-independent latent preferences which are "distorted" by psychological factors, and that latent preferences should be respected. This response implicitly uses a model of human action in which each human being has an "inner rational agent." I argue that this model is psychologically ungrounded. Although references to latent preferences appear in psychologically based explanations of context-dependent choice, latent preferences serve no explanatory purpose.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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