The relations between rationality and optimization have been widely discussed in the wake of Herbert Simon’s work, with the common conclusion that the rationality concept does not imply the optimization principle. The paper is partly concerned with adding evidence for this view, but its main, more challenging objective is to question the converse implication from optimization to rationality, wh...

This paper is a response to ‘Why Be Rational?’ by Niko Kolodny. Kolodny argues that we have no reason to satisfy the requirements of rationality. His argument assumes that these requirements have a logically narrow scope. To see what the question of scope turns on, this comment provides a semantics for ‘requirement’. It shows that requirements of rationality have a wide scope, at least under on...

in more recent years, it has become increasingly recognized that r&d; (research and development) is a key driver of economic growth, a source of innovation and change, and as such stimulates improvements in productivity and economic competitiveness. it is closely associated with knowledge and flexibility, two factors that have gained new significance as a source of competitiveness in an increas...

This paper offers a reassessment of the socialist calculation debate, and examines the extent to which the conclusions of that debate must be modified in the light of the subsequent development of the theory and technology of computation. Following an introduction to the two main perspectives on the debate which have been offered to date, we examine the classic case mounted by von Mises against...

This paper explores the extent to which the lack of rationality of economic agents has affected the economic fluctuations and the social welfare of the U.S. hog market. A group of articles has ascribed the business cycles of the hog market, observed by economists as early as the last century, mainly to the lack of rationality (cobweb expectations) of economic agents. In contrast, others, assumi...

This paper offers a reassessment of the socialist calculation debate, and examines the extent to which the conclusions of that debate must be modified in the light of the subsequent development of the theory and technology of computation. Following an introduction to the two main perspectives on the debate which have been offered to date, we examine the classic case mounted by von Mises against...

The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. We thank Danielle Carpenter Sprungli for her supe...

This chapter analyzes and discusses one of the most important uses of information in the biological world: decision-making. I will first present a fundamental principle introduced by Darwin, the idea of an “economy of nature,” by which decision-making can be understood. Following this principle, I then argue that biological decision-making should be construed as goal-oriented, value-based infor...

Rationality is one of the most over-used words in economics. Behaviour can be rational, or irrational. So can decisions, preferences, beliefs, expectations, decision procedures, and knowledge. There may also be bounded rationality. And recent work in game theory has considered strategies and beliefs or expectations that are “rationalizable”. Here I propose to assess how economists use and mis-u...