The economic model of behaviour is fundamental not only in economic theory, but also in modern approaches of other social sciences, above all in political science and law. This book provides a comprehensive treatise of the general model, its philosophical and methodological foundations and its applications in different fields. In addition to the basic model, extensions to its assumptions are examined to account for complex applications like low-cost situations with moral behaviour. Finally, the book takes a broader perspective by evaluating the impact of the model on economic policy and on the development of the field of social science as a whole, such as the competition between individualistic and collectivist approaches.
Homo Oeconomicus The European Heritage in Economics and the Social Sciences Edited by: Jürgen G. Backhaus University of Erfurt Frank H. Stephen University of Manchester Volume 1 Joseph Alois Schumpeter Jürgen G. Backhaus Volume 2 The Soul of the German Historical School: Methodological Essays on Schmoller, Weber, and Schumpeter Yuichi Shionoya Volume 3 Friedrich Nietzsche (1844–1900): Economy and Society Jürgen G. Backhaus and Wolfgang Drechsler Volume 4 From Walras to Pareto Jürgen G. Backhaus and J. A. Hans Maks Volume 5 Political Economy, Linguistics and Culture: Crossing Bridges Jürgen G. Backhaus Volume 6 Homo Oeconomicus: The Economic Model of Behaviour and Its Applications in Economics and Other Social Sciences Gebhard Kirchgä ssner Gebhard Kirchgässner Homo Oeconomicus The Economic Model of Behaviour and Its Applications in Economics and Other Social Sciences 123 Gebhard Kirchgässner University of St. Gallen SIAW-HSG Bodanstr. 8 CH-9000 St. Gallen Switzerland
[email protected] ISBN: 978-0-387-72757-8 e-ISBN: 978-0-387-72797-4 DOI: 10.1007/978-0-387-72797-4 Library of Congress Control Number: 2008923740 © 2008 Springer Science+Business Media, LLC All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper 9 8 7 6 5 4 3 2 1 springer.com To Maria Preface Fifty years ago, in 1958, RALF DAHRENDORF published his ‘homo sociologicus’. Together with the ‘homo politicus’ he saw these as two new scientific homines to accompany the two existing ones, ‘homo oeconomicus’ as well as ‘psychological man’. At that time, some social scientists demanded that economics should incorporate more sociological aspects. Thus, one might have assumed that homo sociologicus would be progressing in the future and rolling back homo oeconomicus. However, just the opposite happened: homo oeconomicus started off his triumphal advance through the social sciences, including sociology. Today, there exist economic (or ‘rational choice’) approaches in all social sciences. They are, of course, not undisputed, but they cover a considerable part of the traditional territories of these sciences. On the other hand, it is often stated today, even by economists, that homo oeconomicus is outd