A bounded rationality assessment of the new behavioral economics

I explore the evolution of behavioral economics, from a multidisciplinary rational agent orbounded rationality approach that was pioneered and championed by Herbert Simon (1959,1978, 1987) from the 1950s, to the heuristics and biases approach that currently dominates thefield. I argue that although the heuristics and biases approach pioneered by Kahneman andTversky (1979; Kahneman, 2003, 2011; Tversky and Kahneman, 1981) has made...