(credit: Michael Warmby CC BY)

Behavioural economics’ bone of contention

Should we avoid using heuristics, or instead prefer them over ‘rational’ methods?

Behavioural economics is the branch of the dismal science that is concerned with how real people behave in a way that deviates from the neoclassical assumptions of the so-called homo economicus. Not surprisingly, over the years it has on occasion run into…