Every time I read a popular account of how economics assumes an unrealistic, perfectly rational Homo economicus, my little simian brain makes me want to reach out and… explain economics and evolutionary psychology to the writer:
Economics is built on a simple assumption — that individual behavior can best be predicted by assuming that each individual will take the actions that best achieve his objectives. The justification for that assumption, somewhat misleadingly labeled “rationality,” is that we have no good theory of mistakes, no way of predicting what particular irrational action an individual will take. That leaves the rational element as the best — although imperfect — way of predicting behavior.Evolutionary psychology offers, among other things, a theory of mistakes — an alternative to the rationality assumption.
That’s David Friedman, by the way. (Hat tip to Peter Taylor.)