It's Not So Bad to Have Limits, as Long as You Know Them: Economic Theory in Light of the Aristotelian Tradition

Abstract

Economists overlook an ally in the Aristotelian tradition, since both economics and Aristotle begin their analysis with human choice. Economics can learn much about its limits from the Aristotelian tradition, which describes aspects of choice behavior which cannot be precisely modeled. This article argues through three propositions that economists cannot understand the limits of their modeling approach for normative work unless they engage with more comprehensive accounts of human decision making, like the account offered in the Aristotelian tradition.