Review Paper
Year: 2018 | Month: July | Volume: 5 | Issue: 7 | Pages: 116-124
The Rationality Assumption from Birth to Reincarnation
Dhaar Mehak Majeed1, Zahid Gulzar2
1Research Scholar, Department of Economics, University of Kashmir
2Assistant Professor, Department of Higher Education, J&K
Corresponding Author: Dhaar Mehak Majeed
ABSTRACT
Being a very age old yet a dynamically modern social science, economics has journeyed a lot all throughout centuries. The birth dates back to Greeks before Socrates. All this while up until now many notions have seen a peak and a doom and an end that no one even remembers that certain notions ever existed. Yet there are concepts that continue to sustain a fundamental position in the subject.
The assumption of rationality is one such long sustaining notion of economics in particular. It developed as a very important and fundamental assumption of economics, saw a period of dissatisfaction and after being re-worked on and re-defined comes again to the fore-front of the subject.
This paper is an exposition of the birth and journey of the same. And at the same time a tribute to its un-hampered help and contribution to the whole of fundamental economic theory.
The paper traces the status quo of the rationality assumption in economics and comes up with a middle path between the extremes of complete rejection and complete acceptance.
Methodology: The paper being a trace-path of a fundamental economic assumption is based mainly on a vast literature review, with thoughts and thinking invested in it and deep meanings aimed to be surfaced.
The paper eventually is based as a methodological tool on the Content Analysis. Tracing the evolutionary path, the question under vigilance is seeked and the construction and eventual solution is sought.
Key words: Rationality, Econ, Bounded Rationality, Limited Rationality.
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