PAPER ID:IJIM/V.5(XI)/7-16/2

AUTHOR: Purnima Chugh

TITLE :TOWARDS DISINTEGRATED PARADIGM OF ECONOMIC RATIONALITY

Abstract: The economic decision-making research incline towards the cognitive bias and other obstacles in the way of successful decision-making. Considering the elimination of the cognitive bias from the behavior as a way to sound behavioral rationality is faulty one. The study argues that even when the cognitive bias is completely taken out from the decision, there is no surety that the decision will be behaviorally rational one. The behavioral rationality is analyzed in the research and the three concepts have been discussed which is called sentimental, platonic and placidity in this work. Using the eighteenth century statesman Thomas Jefferson as a case study, the study indicated that the economic decisions optimization could be achieved by evaluating the behavioral and economic decisions critically. It is concluded that the behavioral rationality does not confirms the economic rationality instead; the sentiments along with the right information can increase efficiency of decision-making.

Keywords: Behavioral rationality; Economic rationality; Decision making; Sentimental; Placidity; Platonic; Cognitive bias

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