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Saturday, March 27, 2010

Economics: Learning That People Are Not Automatons

Act I in this history [of economics] would be set in the era of economic scientism: the period when economists based their work on a crude vision of human nature (the perfectly rational, utility-maximizing autonomous individual) and then built elaborate models based on that creature.

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In Act IV ... economists are taking baby steps into the world of emotion, social relationships, imagination, love and virtue.

See The Return of History by David Brooks, March 25, 2010.

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