In 2011,Edward Cartwright,a behavioral economist,gave credit to the Nobel Prize-winning economist Herbert Simon for launching what Cartwright calls the "you cannot be serious attack" on the standard economic model.Cartwright cites a paper published by Simon in 1955,where the author uses the standard economic model to solve elegantly how a rational person should behave.After solving an equation for this rational person's optimal behavior,Simon states: "My first empirical proposition is that there is a complete lack of evidence that,in actual human choice situations of any complexity,these computations can be,or are in fact,performed."
Source: "A Behavior Model of Rational Choice," Quarterly Journal of Economics (1955) : 104.
This statement by Simon can be best described as a call to
A) governments for increased education spending so that more decision-makers can and will perform the computations that Simon is referring to.
B) citizens to do their part to reduce the complexity of all human choice situations.
C) economists to replace Homo economicus in economic thinking with something more humanlike.
D) economists to continue to use Homo economicus to guide their understanding of the complex nature of human decision-making.
E) the United States Department of Economic Rationality to impose a new bylaw prohibiting the use of the standard economic model in academic research papers.
Correct Answer:
Verified
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