Individualist Economics Without Psychology
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Neoclassical economics is often thought to need an infusion of social psychology. There are two reasons for this. One is that economics should be able to recognize the social interaction between individual decision-makers; the other is that economics should recognize that the nature of an individual’s utility function is essentially psychological. Both of these criteria involve the methodological requirements of an individualism that is at the foundations of neoclassical economics. In this short chapter I would like to explain why the requirements of methodological individualism do not necessitate an infusion of social psychology.
KeywordsUtility Function Demand Curve Moral Dilemma Neoclassical Economic Methodological Individualism
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