Wednesday, June 19, 2013

Preferences and tastes in economic theory


Here is an article describing the views of Nobel prize winner and famous economist McFadden about the necessity of incorporating analytical results from psychology, neuroscience, and anthropology into consumer theory and economic theory.

Economic theory is just a false science with false assumptions and analyzes only fixed things. That is why it is failing to predict economic crises, recessions, and depressions. They are realizing their mistakes after the changed facts only. By the time they develop a new theory, things change and the cycle begins again.