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15 - A Summary

Published online by Cambridge University Press:  18 May 2010

Vernon L. Smith
Affiliation:
George Mason University, Virginia
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Summary

The great question … is whether man's mind will be allowed to continue to grow as part of this process [of creating undesigned achievements] or whether human reason is to place itself in chains of its own making.

Hayek (1948, p. 32)

Cartesian constructivism applies reason to individual action and for the design of rules for institutions that are to yield socially optimal outcomes, and constitutes the standard socioeconomic science model. But most of our operating knowledge and ability to decide and perform is nondeliberative. Because such processing capacities are scarce, our brains conserve attention and conceptual and symbolic thought resources, and proceed to delegate most decision making to autonomic processes (including the emotions) that do not require conscious attention.

Emergent arrangements and behaviors, even if initially constructivist, must have fitness properties that incorporate opportunity costs and social environmental challenges invisible to constructivist modeling, but that are an integral part of experience and selection processes. This leads to an alternative, ecological concept of rationality: an emergent order based on trial-and-error cultural and biological coevolutionary change. These processes yield home- and socially-grown rules of action, traditions, and moral principles that underlie emergent (property) rights to act that create social cohesion in personal exchange.

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Rationality in Economics
Constructivist and Ecological Forms
, pp. 322 - 328
Publisher: Cambridge University Press
Print publication year: 2007

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  • A Summary
  • Vernon L. Smith, George Mason University, Virginia
  • Book: Rationality in Economics
  • Online publication: 18 May 2010
  • Chapter DOI: https://doi.org/10.1017/CBO9780511754364.021
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  • A Summary
  • Vernon L. Smith, George Mason University, Virginia
  • Book: Rationality in Economics
  • Online publication: 18 May 2010
  • Chapter DOI: https://doi.org/10.1017/CBO9780511754364.021
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • A Summary
  • Vernon L. Smith, George Mason University, Virginia
  • Book: Rationality in Economics
  • Online publication: 18 May 2010
  • Chapter DOI: https://doi.org/10.1017/CBO9780511754364.021
Available formats
×