Microeconomics: false

by Rudd-O published 2008/12/01 10:45:07 GMT+0, last modified 2013-06-26T03:24:31+00:00
We've been dabbling in microeconomics as a theory of human behavior for over a century now. Turns out, it's a false theory.

Two interesting documents :

  1. When inclusion costs and ostracism pays...: people prefer being included, even when inclusion causes them to lose, hard.  Three observations:
    1. This may very well explain why people do absurd things to fit in.
    2. This throughly contradicts (or rather, totally pwns) microeconomics' tenet that people should prefer exclusion if inclusion harms them.
    3. Where microeconomics fails (namely, here), evolutionary psychology works.
  2. The insufficiency of microeconomics: microeconomics and its model of the singular and unitary actor can no longer adequately
    explain organizational behavior now that there are men and women in corporations.

Economic theories are false pseudoscience.    We shouldn't be relying in falsehoods to make decisions.