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Mind & Society

, Volume 18, Issue 2, pp 139–142 | Cite as

A behavioral approach to economic analysis

  • Hugh SchwartzEmail author
Article

Few people would even dream that one could deal with economic analysis in the real world by considering what is merely mathematically possible, yet that is basically what the academic discipline of economics does. Behavioral economics endeavors to alter this by taking account of psychology and of other factors as well—sociological, cultural and political matters. What it has accomplished is truly admirable. The irrationality of employing a strictly rational approach has been shown to be at odds with what happens in the real world.

Behavioral economics has pointed out—and empirically substantiated—numerous irrationalities, but although there are a few important exceptions, almost all of what has been shown has referred to the actions of individuals. And even the most acclaimed of the works regarding organizations have dealt with groups of organizations and averages of organizational behavior. Outliers are ignored even though those outliers may have been influential and their influential...

Notes

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.AlexandriaUSA

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