Dragan Petrovic

DOI Number
First page
Last page


If we start from the presumption that the aim of the theoretical analysis of the complex socio-economic reality is to provide certain knowledge by applying of which there can be improvement and betterment of that reality, then economical and theoretical mainstream usually does this starting from axiom of the rationality. On the other hand, if we keep in mind the current empirical data on the numerous problems and inefficient functioning of the economic actors, then the logical question that occurs is whether the presumption of the unlimited rationality of the economic subjects should be so easily idealised. Starting from the fact that the bihevioral economics has a special role in the powerful critical attack on the “strong core” of the neo-classical mainstream, this paper discusses numerous psychological limitations of the process of economic decision-making, and the possibilities of their overcoming. In relation to this, we especially emphasize the importance of the behavioral analysis and its instrumentalist support directed toward the improvement of economic rationality and the quality of human decisions.

Key words: rational choice, behavioral economics, behavioral anomalies and biases, ‘new’ paternalism

Full Text:



Camerer, C., Issachoroff S., Loewenstein, G., O'Donoghue, T. and Rabin, M. (2003) "Regulation for Conservatives: Behavioral Economics and the Case for Asymmetric Paternalism“, University of Pennsylvania Law Review, 151(1), pp. 1211-1254.

Dworkin, G. (1972) "Paternalism", The Monist, 56(1), pp. 64-84.

Elster, J. (1989) Nuts and Bolts for the Social Sciences, Cambridge: Cambridge University Press.

Frey, B. (1992) Economics as a Science of Human Behavior: Towards a New Social Science Paradigm, Boston and Dordrecht: Kluwer Academic Publishers.

Garsia, M. J. (2013) "Financial Education and Behavioral Finance: New Insigts into the Role of Information in Financial Decisions", Journal of Economic Surveys, 27 (2), pp. 297-315.

Golubović, N. (2011) Društvena ekonomija – Ekonomska aktivnosti u društvenom okruženju, Ekonomski fakultet, Univerzitet u Nišu.

Kahneman, D., Tversky, A. (1974) "Judgment under Uncertainty: Heuristics and Biases", Science, 185 (4157), pp. 1124-1131.

Kahneman, D., Tversky A. (1974) "Prospect Theory: An Analysis of Decision under Risk", Econometrica, 47 (2), pp. 263-291.

Katona, G. (1951) Psychological Analysis of Economic Behavior, N.Y.: McGraw-Hill.

Kitanović, D., Petrović, D. (2010) Ogledi o metodološkim problemima savremene ekonomske nauke, Ekonomski fakultet, Niš.

Knetsch, J. L. (1989) "The Endowment Effect and Evidence of Nonreversible Indifference Curves", American Economic Review, 79 (5), pp. 1277-1284.

Lakatos, I. (1970) "Falsification and the Methodology of Scientific Research Programmes", u: Lakatos, I. and Musgrave, A. (eds), Criticism and the Growth of Knowledge, Cambridge: Camridge University Press, pp. 91-196.

Madhadam, B. F., Gutmann, T. (2013) Governing (through) Autonomy.The Moral and Legal Limits of „Soft Paternalism, Münster, 2013/60, pp. 1-20.

MekFaden, L. D. (2003) "Racionalnost za ekonomiste?" Ekonomski anali, 155, januar-mart, pp. 169-199.

Milićević, A., Pavličić, D., Kostić, A. (2007) "Odlučivanje u uslovima rizika i teorija izgleda", Psihologija, 40(1), pp. 147-164.

O'Donoghue, T., Rabin, M. (2003) "Studying Optimal Paternalism, Illustrated by a Model Sin Taxes", American Economic Review, 93 (2), pp. 186-191.

Ostrom, E. (1998) "A Behavioral Approach to the Rational Choice Theory of Collective Action", American Political Science Review, 92 (1), pp. 1-22.

Petrović, D., Stefanović, Z. (2009) Critical Review of the Concept of Rationality in the Economic Theory, Economic Policy and Global Recession, Volume 1, Faculty of Economics, University of Belgrade, 2009, pp. 25-35.

Rizzo M. J., Whitman D. G. (2009) "The Knowledge Problem of New Paternalism", BYU Law Review, 2009 (4), pp. 904-968.

Robbins, L. (1945[1932]) An Essay on the Nature and Significance of Economic Science, London: Macmillan.

Saint-Paul, G. (2011) The Tyranny of Utility: Behavioral Social Science and the Rise of Paternalism, Princeton: Princeton University Press.

Santos, A. C. (2011) "Behavioural and experimental economics: are they really transforming economics?", Cambridge Journal of Economics, 35, pp. 705-728.

Simon, H. A. (1955) "A Behavioral Model of Rational Choice", Quarterly Journal of Economics, 69 (1), pp. 99-118.

Simon, H. A. (1957) Models of Man, Social and Rational: Mathematical Essays on Rational Human Behavior in a Social Setting, New York: John Wiley and Sons.

Stojanović, B. (2013) "The Riddle of Thinking, Thinking, Fast and Slow, by Daniel Kahneman", Penguin Books, London, 2012, (Book review), Panoeconomicus, 4, pp. 569-576.

Sunstein C., Thaler R. (2003) "Libertarian Paternalism Is Not an Oxymoron", University of Chicago Law Review, 70 (4), pp. 1159-1202.

Thaler, R. (1980) "Toward a Positive theory of Consumer Choice", Journal Economic Behavior and Organization, 1 (1), pp. 39-60.

Tversky, A., Kahneman, D. (1986) "Rational Choice and the Framing of Decisions", Journal of Business, 59 (4), Part 2: The Bahavioral Foundations Economic Theory, pp. S251-S278.

Wilber, K. C., Harrison, R. S. (1978) "The Methodological Basis of Institutional Economics: Pattern Model, Storytelling, and Holism", Journal of Economic Issues, 12 (1), pp. 61-89.

Wright, D. J., Ginsburg, D. H. (2012) "Behavioral Law and Economics: Its Origins, Fatal Flaws and Implications for Liberty", Northwestern University Law Review, 106 (3), pp. 1033-1089.

Zwirn, G. (2007) "Methodological Individualism or Methodological Atomism: The Case of Friedrich Hayek", History of Political Economy, 39 (1), pp. 48-80.

Капелюшников, Р. (2013) "Поведенческая экономика и „новый“ патернализм", Вопросы экономики, 9, pp. 66-90.

Ходжсон, Дж. (2000) "Правычкы, правила и экономическое поведение", Вопросы экономики, Но. 1, pp. 38-55.


  • There are currently no refbacks.

ISSN 0354-4699 (Print)

ISSN 2406-050X (Online)