Edition: https://www.cambridgescholars.com/product/978-1-5275-5644-7Publisher: Cambridge Scholars PublishingISBN: 978-1-5275-5644-7
Preface
Do individuals have an economic personality? Is there a pattern in the economic behavior of real-life people? Are real-life economic behaviors predictable? Homo economicus, as defined in economics, is the most important one among the basic assumptions, on which the models of mainstream economics are based. The reason for this is the economic behavior of rational people. A rational person must repeat behavior that aims to maximize his benefit. For example, he should always choose the highest rate of return, preferring the most over the less. Therefore, there is a behavior pattern that a rational person must exhibit consistently in all his economic behaviors. Thanks to rationality, the behavior of Homo economicus is predictable and free from uncertainty. However, uncertainty is the most prominent and ancient problem regarding the economy. The uncertainty that arises in every significant crisis causes the economic theory based on rationality to be damaged. After the 2008 crisis, a theoretical debate started again between the schools of economics. This debate focuses again on the invalidity of rationality, which is a hardcore economic theory. Economists tend towards more realistic definitions of human beings instead of rationality eliminated from uncertainty. Behavioral economics, which gained popularity after the 2008 crisis, caused the bounded rationality of individuals to come to the forefront even more. Institutional economics, which accepts that the individual can have bounded rationality, pays importance to the behavior pattern of the institutional individual. Homo institutionalism draws on bounded rationality and habits acquired from experience in their repetitive economic behavior. Some experimental economists define Homo reciprocans. Homo reciprocans, who have a reciprocal behavior pattern, systematically display unselfish behavior in case of uncertainty. The economic behavior pattern of Homo reciprocans repeats the act of opposing someone, who takes advantage of it. On the other hand, some economists emphasized that human beings have an identity shaped by the psychological and sociological elements. A person, who defines himself with an identity, would be happy when repeating the behaviors required by this identity. Therefore, some economists consider the behavior of Homo moralis. The behavior pattern of Homo moralis makes the individual to repeat the decisions that will enable him to maintain moral standards in his economic behaviors in case of an uncertainty. The objective of this book is to reconsider human behavior in real life based on the individual behaviors given above. In other words, it aims to harmonize the real-life human behavior and the human behavior in economic theory. Thus, this book aims to redefine human behavior in case of uncertainty. Therefore, it defines the theory of economic personality. Personality, learning, genetics, geography, religion, culture, technology, institutions, and income comprise an economic personality. These nine factors constitute systematically repeated patterns of economic behavior in case of an uncertainty. Thus, the economic personality leads the individual to exhibit predictable behaviors in uncertainty without the need to be rational. This book has six critical features. First, it explains the systematics of human behavior patterns in real life. In other words, economic personality is a new definition of an individual. This new definition also considers the above-mentioned behavioral patterns. Second, it describes the economic personality by considering the uncertainty. Therefore, it explains the inseparable relationship of propositions and theories in economics with uncertainty. Third, the economic personality describes human behavior much more realistically. Thus, the redefined individual can make the new theories produced in economics more realistically. For this reason, this book is a useful source for researchers, who want to use economic personality. Fourth, this book provides an example for economists, who wish to define an individual as more realistic and valuable for economic theory. Fifth, since the idea of economic personality proves that human beings exhibit predictable behaviors without the need for rationality, this book also shows how close the economics is to the sciences such as psychology, sociology, anthropology, geography, genetics, and physics. Therefore, it expands the field of cooperation between economics and other sciences. Sixth, this book contributes to preventing the significant disintegration in economics education after the 2008 crisis. The fact that school segregation is becoming increasingly evident causes students studying economics to experience confusion. The theory of economic personality, which causes predictable behavior, can help students get theoretical training without getting into this confusion.