What I really like about the Austrian approach to economics is that it rejects the ridiculous and unrealistic idea of a "homo economicus", as it fails to account for the motivations that influence real human actions 👇



What I really like about the Austrian approach to economics is that it rejects the ridiculous and unrealistic idea of a "homo economicus", as it fails to account for the motivations that influence real human actions 👇



Rationality and behaviour are two different concepts that have their place in understanding economic activity. NeoLib econs are overtly mathematical because their approach to modeling discounts irrationality because it makes the model easier to analyze (quantitatively). But that means that they short change the results obtained from the analysis.