Irrationality in the Neoclassical Definition of Rationality
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Copyright: © 2020 Steve Keen. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
In this study we are not arguing that competition as it actually occurs in practice is not socially beneficial. Our criticism is directed instead at the false belief that rational profit-maximizing behavior and competition as defined by neoclassical economic theory will lead to a welfare-maximizing outcome-again, as defined by neoclassical theory.
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- Cournot-Nash style competitive behavior
- game theory
- complex behavior/dynamics