Mark Thoma — Fairness Matters for Efficiency

Prof. Thoma calls attention to the work of Professor Armin Falk of Bonn University — with a video of his INET presentation. Thoma's summary is short and important as a refutation of a simplistic view of rational expectations based on maximizing utility in the context of methodological individualism. Professor Falk's work demonstrates that humans are fundamentally social rather than individual, as methodological individualism assumes to be self-evident apriori. Empirically this isn't the case.

Read it at Economist's View

Fairness Matters for Efficiency
by Mark Thoma