Death of homo economicus, rise of behavioral economics | i don't want a topic | Scoop.it
Death of homo economicus, rise of behavioral economics

 

HOW ECONOMICS GOT IT WRONG AND WHAT TO DO ABOUT ITThe time has come for the end of the economics as we know it. It seems thatacademic economics amplified with its intellectual vanity failed to realize the humansas they truly are. Or at least they kept quiet about it and hoped“it” would go away.Recent economic crisis triggered a tsunami of critics pointed at economists, bankers,politicians and regulators as well as world‟s most prominent business schoolfor leading the same world into crisis instead of taking care of sustainability of the currentliving conditions. How did economics fail? Well, this is a simple question so I will trywith a simple answer. It all began when economic mathematicians decided to revealhuman nature and explain human behavior. The legacy they left us got materializedin certain assumptions and theories which turned out to be completely ignorant of thefact how do people really think and behave. These theories are filtered down to theeconomics education system (business schools) creating thereby very closed andrigid environment that lacks interdisciplinary and academic diversity. In this paper I‟lltry to detect origins and process of economics becomingtroublesome in today‟ssociety. Giving insight in some historical precedents and development of some newscientific disciplines, I‟ll conclude that time has come to change the way economics istaught. Great responsibility that is put on business school to create individuals withpower to create global policies needs to be (re)justified. Business schools need torethink how to shape business education for the future. A business education that willbe based on multidisciplinarity and taking a bigger picture in perspective. This doesnot exclude present body of economics knowledge but it implies incorporating some“new stuff  that‟s been on the street” for some time


Via Alessandro Cerboni