The Weak Rationality Principle in Economics

Abstract

The weak principle is not an empirical statement but a heuristic rule of how to proceed in social sciences. It is a necessary ingredient of any understanding social science in the Weberian sense. In this paper, first this principle and its role in economic theorizing is discussed. It is also explained why it makes sense to use a micro-foundation and, therefore, employ the assumption in economic models. Then, with reference to the bounded rationality approach, the informational assumptions are discussed. Third, we address the assumption of self-interest which is often seen as a part of the assumption. We conclude with some remarks on handling the problems of free will as well as weakness of the will within the economic approach.