as a philosophy for behavioural economics

Abstract

: Behavioural economics offers an account of actual human behaviour. Contrasting with the conventional normative approach to rationality, rational choice theory, describes the deviations from optimal decision making. These are attributed to failures in two systems, one in charge of automatic behaviour (System 1) and the other responsible for reflective one (System 2). As important as this is, an elaboration of the interaction between them seems to be lacking. Philosophical pragmatism can contribute to address this want. It provides an evolutionary explanation of how people act accounting for the continuity of behaviour including habitual and reflective action. The former is captured by habits and the latter directed towards objects. Additionally, it proposes a dialogical self, consisting of an interaction between the ‘I’, denoting impulse, and the ‘me’, referring to reflective action. As such, pragmatism can provide fertile ground on which to cultivate behavioural insights.