89-00
Universität Siegen
Fachbereich
Wirtschaftswissenschaften, Wirtschaftsinformatik und
Wirtschaftsrecht
Volkswirtschaftliche Diskussionsbeiträge
Walter Buhr und Thomas
Christiaans
Economic Decisions by Approved Principles: Rules of Thumb as Behavioral Guidelines
We discuss the relevance of the concept of rational behavior in
economic theory and suggest, on the basis of modern brain
research results, to abstain from this notion and instead to
apply behavioral rules of thumb in decision-making, especially
if these rules can be derived from rational problem solutions
determined by individual economic agents. We give an example
for our point of view which refers to a contribution by Baumol
and Quandt on the pricing behavior of a monopolistic firm and
which also emphasizes the general importance of dynamic
analysis in economics.