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Working Paper No. 85. Markets vs. Government when Rationality Is Unequally Bounded

PublicationWorking paper
Företagandets villkor, Institutionell ekonomi, Marknad, Pavel Pelikan, Rationalitet
Working Paper No. 85.
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Abstract

Recognizing that human rationality has bounds that are unequal across individuals entails treating it as a special scarce resource, tied to individuals and used for deciding on its own uses. This causes a meta-mathematical difficulty to the axiomatic theories of human capital and resource allocation, and raises a new problem for comparative institutional analysis, allowing it to explain some so far little understood differences between markets and government. The policy implications strengthen the case against national planning, selective industrial policies, and government ownership of enterprises, but weaken the case against paternalism.

Pelikan, P. (2006). Markets vs. Government when Rationality Is Unequally Bounded: Some Consequences of Cognitive Inequalities for Theory and Policy. Working Paper No. 85.

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Working Paper No. 85. Markets vs. Government when Rationality Is Unequally Bounded
Working paperPublication
Pelikan, P.
Publication year

2006

Published in

Ratio Working Paper

Abstract

Recognizing that human rationality has bounds that are unequal across individuals entails treating it as a special scarce resource, tied to individuals and used for deciding on its own uses. This causes a meta-mathematical difficulty to the axiomatic theories of human capital and resource allocation, and raises a new problem for comparative institutional analysis, allowing it to explain some so far little understood differences between markets and government. The policy implications strengthen the case against national planning, selective industrial policies, and government ownership of enterprises, but weaken the case against paternalism.

Working Paper No. 48. Interconnecting Ecolutionary, Institutional and Cognitive Economics: Six Steps towards Understanding the Six Links
Working paperPublication
Pelikan, P.
Publication year

2004

Published in

Ratio Working Paper

Abstract

Many students of evolutionary, institutional, and cognitive economics have been aware that important links among these fields exist, and several authors have worked on bringing these links to light. Nevertheless, large parts of these links still remain poorly understood. Low interest in inter-field cooperation may be one reason, but difficulties in making these links accessible to meaningful analysis appear more constraining. After surveying the links, this paper proposes six steps towards overcoming these difficulties. It then examines how the three fields together may affect methods and results of economic analysis, in particular those concerning certain basic policy issues.

Working Paper No. 48. Interconnecting Ecolutionary, Institutional and Cognitive Economics: Six Steps towards Understanding the Six Links
Working paperPublication
Pelikan, P.
Publication year

2004

Published in

Ratio Working Paper

Abstract

Many students of evolutionary, institutional, and cognitive economics have been aware that important links among these fields exist, and several authors have worked on bringing these links to light. Nevertheless, large parts of these links still remain poorly understood. Low interest in inter-field cooperation may be one reason, but difficulties in making these links accessible to meaningful analysis appear more constraining. After surveying the links, this paper proposes six steps towards overcoming these difficulties. It then examines how the three fields together may affect methods and results of economic analysis, in particular those concerning certain basic policy issues.

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