Prof. David Levine - Is Behavioural Economics Doomed?

"Is Behavioural Economics Doomed?"

While behavioural economics is all the rage today, the vast array of theories vastly outstrips any data or experimental evidence. And while every anomaly in standard theory can be explained by one and usually many behavioural theories, these theories are all inconsistent with each other and with behaviour other than the specific behaviour being targeted for explanation. I explain why economics requires a single coherent theory, and not a jumble of conflicting ones. A series of examples including prospect theory and various theories of altruism and spite are used to illustrate the problem. A possible solution in the form of "dual-self" or "planner-doer" models is offered.

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Science & Technology

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• david levine