Identity, Capabilities, and Changing Economics: Reflexive, Adaptive, Socially Embedded Individuals

Mainstream economics assumes economic agents act and make decisions to maximize their utility, but behavioral economics views individuals through the lens of bounded rationality. Identity, Capabilities, and Changing Economics argues that the utility conception of individuals should be replaced by a conception of economic agents in an uncertain world as socially embedded and identified with their capabilities.

Format: Hardback
Length: 304 pages
Publication date: 01 February 2024
Publisher: Cambridge University Press

Mainstream economics posits that economic agents are driven by the pursuit of maximizing their utility, a model rooted in rational choice theory. However, this assumption has faced mounting criticism within the field of economics due to its failure to accurately capture the nuanced and complex behavior of human beings. The shift towards a more realistic portrayal of economic agents has been largely attributed to the rise of behavioral economics, which adopts a bounded rationality perspective to understand individuals.

In his groundbreaking work "Identity, Capabilities, and Changing Economics," renowned philosopher of economics John Rawls takes this critique a step further by employing identity analysis to challenge the notion of individuals as mere utility maximizers. Rawls argues that a more appropriate conception of economic agents should be rooted in their social embeddedness and identification with their capabilities. By adopting this perspective, Rawls proposes a novel approach to economics theory, characterizing individuals as adaptive and reflexive rather than solely driven by the pursuit of maximizing utility.

Through his comprehensive exploration of identity, capabilities, and the changing nature of economics, Rawls offers a profound reimagining of the individual's role in economic systems. He challenges the traditional view of economics as a discipline solely focused on maximizing individual gains, instead advocating for a more inclusive and equitable approach that recognizes the interdependence of individuals and their social context. Rawls' work sheds light on the complex dynamics that shape economic behavior, highlighting the importance of factors such as social norms, institutions, and political power in shaping economic outcomes.

By advocating for a conception of economic agents that is socially embedded and identified with their capabilities, Rawls offers a valuable contribution to the field of economics. His work challenges the dominant paradigms and provides a fresh perspective on the study of individual behavior and economic decision-making. Through his insightful analysis and compelling arguments, Rawls invites us to reevaluate our understanding of economics and its role in shaping the world around us.

Weight: 605g
ISBN-13: 9781009438230