Don’t get me wrong: I like behavioral economics as much as the next guy. It’s quite clear that people are irrational in ways that the neoclassical model assumes away, and you can’t see human nature quite the same way after hearing Dan Ariely talk about hisexperiments on cheating. But...
equally constrained by the bounded rationality reflected in the cognitive limitations of the decision maker. In this sense, both can be ecologically rational, as long as “it turns out that the behaviour prescribed is well adapted to its goals—whatever those goals might be” (Simon1993: 393)....