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Bounded Rationality: The Two Cultures

Konstantinos Katsikopoulos
Netzwerk Plurale Ökonomik, 2014
Level: beginner
Perspective: Behavioral Economics
Topic: Microeconomics & Markets
Format: Lecture
Duration: 01:08:38
Link: https://www.youtube.com/watch?v=35tXytX9zzM&index=7&list=PLHcX3MybUIx5ErLBD-05XMmbc9pyj1nn2
In this lecture, Konstantinos Katsikopoulos presents the concept of bounded rationality and contrasts two - as he calls it - cultures of research and analysis within Behavioral Economics: an "idealistic" and a "pragmatic" approach. Thereby, Katsikopoulos discusses amongst others their different assumptions on decision making (utility optimization vs. achievement of a satisfactory outcome), the psychological process as well as the epistemic aim and implications on policy recommendations (nudging vs. education).

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