The question of relevance of phenomenological method for economics has been revived in recent decades especially in the context of the Austrian school and also in more general considerations of economics (see Duppe 2011). My thesis concentrates mainly on the important contributions of formerly Viennese social thinker Alfred Schutz. I attempted to find an interpretation of the original Schutzian legacy that would fit present methodological discussions and show the virtues of the Schutzian framework in comparison with Misesian aprioristic praxeology on one extreme and the empirical ventures of behavioral economists on the other.Chapter 1 (World and science by Ludwig von Mises) shows that Misesian theoretical approach can, on one hand, provide a good tool to defend a specific character of social sciences that rely on folk psychological (or 'mentalist') concepts (finality, means-ends relationship) from purely pragmatic (i.e., not metaphysical) grounds. The mentalist concepts are indispensable in providing the only presently viable way of describing human action and this allows us to use instrumental rationality as a tool to explain economic phenomena. The effort to get the scientific description of the world rid of 'ontologically unreliable' teleology using, e.g., the behaviorist notion of revealed preference cannot get too far because they implicitly rely on particular psychological assumptions that smuggle it back in. On the other hand, unsustainability and inconsistencies of Mises's uncompromising defense of rigidly aprioristic character of praxeology have to be stressed. There is no finite set of eternal and never-changing truths underlying any successful attempt to grasp human action that would be tautological and, at the same time, describe features of the world.In Chapter 2 (Alfred Schutz between phenomenology, historicism, and the Austrian school) I argue in the context of Alfred Schutz's work that it is much more suitable to understand economic principles (under the label of praxeology or otherwise) as typifications with an empirical origin, although 'empirical' in a broader sense than a positivist would acknowledge. Schutz's methodology is based on concepts of typification and anonymity that allow us to grasp the continuity between immediately perceived everyday reality and abstract theoretical concepts used in scientific description that underlie economic models.Schutz's methodological instrument, the telescopic ideal type-term coined by Prendergast (1986)-dissolves the dichotomy between theory and history that was one of Mises's central themes and allows us to better understand the specific standing of economics that tries to emulate the rigor and precision of physics but is, at the same time, fundamentally connected with interpretation of the actions of naive agents in their lifeworld. Abstract formal models can be created after 'zooming-out' and anonymizing the agents to an extent that allows us to replace the real people living in particular historical, cultural and biographical conditions by anonymous transparent puppets whose utility function has been implanted by the economist acting as a 'small god' of his model world. Such formal models can be, of course, sometimes applied to particular empirical circumstances only using additional ad hoc assumptions, constraints, and the like. This fact, nevertheless, does not undermine the scientific value and legitimacy of economic approach as many critics suggest-it is a process necessarily connected with descending on a lower level of abstraction where various circumstances become relevant which we did not need to pay attention to before.In addition to its philosophical virtues, the Schutzian approach also sheds light on methodological problems connected with Hayekian idea of spontaneous order (Foss 1996). Spontaneous coordination and rise of a social order that has not been designed by any individual mind represent a problem that needs to be solved considering institutional context of the coordination because it is not possible to decide a priori which of the multiple equilibria a rational agent going to choose. …
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