Becker random behavior and the as-if defense of rational choice theory in demand analysis
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Moscati, Ivan and Tubaro, Paola (2011) Becker random behavior and the as-if defense of rational choice theory in demand analysis. Journal of Economic Methodology , 18 (2). pp. 107-128. ISSN 1350-178X (Print), 1469-9427 (Online)
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Abstract
In discussing rational choice theory (RCT) as an explanation of demand behavior, Becker (1962, Journal of Political Economy, 70, 1–13) proposed a model of random
choice in which consumers pick a bundle on their budget line according to a uniform distribution. This model has then been used in various ways to assess the validity of
RCT and to support as-if arguments in defense of it. This paper makes both historical and methodological contributions. Historically, it investigates how the interpretation of Becker random behavior evolved between the original 1962 article and the modern experimental literature on individual demand, and surveys six experiments in which it has been used as an alternative hypothesis to RCT. Methodologically, this paper conducts an assessment of the as-if defense of RCT from the standpoint of Becker’s model. It argues that this defense is ‘weak’ in a number of senses, and that it has negatively influenced the design of experiments about RCT.
| Item Type: | Article |
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| Additional Information: | [1] This is an electronic version of an article published in Ivan Moscati & Paola Tubaro (2011): Becker random behavior and the as-if defense of rational choice theory in demand analysis, Journal of Economic Methodology, 18:2, 107-128. Journal of Economic Methodology is available online at: http://www.informaworld.com/openurl?genre=article&issn=1350-178X&volume=18&issue=2&spage=107.[2] The Journal of Economic Methodology is the international scholarly journal of the International Network for Economic Method (INEM). |
| Uncontrolled Keywords: | rational choice, random choice, as-if defense of scientific theories, experimental economics, demand analysis. |
| Subjects: | H Social Sciences > HB Economic Theory |
| School / Department / Research Groups: | School of Business School of Business > Centre for Business Network Analysis School of Business > Corporate Accountability Research Group School of Business > Department of International Business & Economics |
| Related URLs: | |
| Last Modified: | 31 Dec 2012 01:38 |
| URI: | http://gala.gre.ac.uk/id/eprint/4660 |
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