Frank Knight on Behavioral Economics

Or at least it nudgier side. This is from nearly a century ago, long before the current behavioral economics field began. Knight, like any good economist, agrees with behavorialists in rejecting perfect rationality as a reliable guide to human behavior. But behavioralists go too far when they move from is to should.

From p. 182 of 1921’s Risk, Uncertainty, and Profit:

A large part of the critics’ strictures on the existing system come down to protests against the individual wanting what he wants instead of what is good for him, of which the critic is to be the judge; and the critic does not feel himself called upon to outline any standards other than his own preferences upon a basis of which judgment is to be passed.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s