No. Rational Choice Theory, which until George Soros, was the standard for economics.
Soros changed all that.
I’m glad for Soros as he was right.
Soros introduced reflexololgy or refracology or refracto… oh lemme look it up.l.. has a dumb name….Reflexivity”if investors believe that markets are efficient then that belief will change the way they invest, and that in turn will change the nature of the markets they are observing … That is the principle of reflexivity”
Oh, the “Buffett” economics still works but it works on such LONG time scales that few can be bothered and it’s no fun.Soros is fun and reflects the drama of rational people believing they’re rational but aren’t.
Early neoclassical economists writing about rational choice, including William Stanley Jevons, assumed that agents make consumption choices so as to maximize their happiness, or utility. Contemporary theory bases rational choice on a set of choice axioms that need to be satisfied, and typically does not specify where the goal (preferences, desires) comes from. It mandates just a consistent ranking of the alternatives
I also believe in rational choice theory most of the time. It’s part of our culture, deeply deeply embedded.But I remember Soros now and again.
Right. Rational choice theory is an individualist theory.