Bounded rationality and altruism: behaviourism in economics

Abstract

This essay is intended to respond to the criticism of economic science that it builds \nits models on unrealistic assumptions from the start. Perfect rationality and the \naxiom of self-interest are indeed two of the main tenets of neoclassical economics. \nIn this paper, however, we argue that the application of these doctrines is far \nfrom exclusive. Indeed, with the achievements of the behaviourist approach and \nbehavioural economics, the theory of bounded rationality was accepted as early \nas the last century in this scientific area, along with the recognition of altruistic \nbehaviour. Many of these achievements have been more or less integrated into \nmainstream thinking by now, and once applied, by relying on more psychologically \nrealistic assumptions they may significantly contribute to improving the forecasting \npower of economic models.

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