Thorstein Veblen’s Institutional Economics and Daniel Kahneman and Amos Tversky’s Behavioral Economics: an analysis of convergent points

Vol. 40 No. 4 (2020)

Oct-Dez/2020
Published October 23, 2020
PDF-English
PDF-English

How to Cite

Taioka, Tainari, Felipe Almeida, and Ramón Garcia Fernádez. 2020. “Thorstein Veblen’s Institutional Economics and Daniel Kahneman and Amos Tversky’s Behavioral Economics: An Analysis of Convergent Points”. Brazilian Journal of Political Economy 40 (4):746-65. https://doi.org/10.1590/0101-31572020-3146.

Thorstein Veblen’s Institutional Economics and Daniel Kahneman and Amos Tversky’s Behavioral Economics: an analysis of convergent points

Tainari Taioka
Universidade Federal do ABC – UFABC, Santo André/SP, Brasil.
Felipe Almeida
Universidade Federal do Paraná – UFPR, Curitiba/PR, Brasil.
Ramón Garcia Fernádez
Universidade Federal do ABC – UFABC, Santo André/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 40 No. 4 (2020), Oct-Dez/2020, Pages 746-765

Abstract

Original Institutional Economics and Behavioral Economics are two approaches that have challenged the conventional economics of their time regarding decision-making. Therefore, considering the original Institutional Economics according to Thorstein Veblen and Behavioral Economics as stated by Daniel Kahneman and Amos Tversky, this study aims to analyze if they have any convergent elements. As the key issue investigated in this study is decision-making, the convergence among these approaches relies on their psychological foundations. The psychological basis of original Institutional Economics is North-American pragmatic philosophy. This study offers a psychological approach to social learning and the theory of cognitive dissonance as the psychological basis of Behavioral Economics.

JEL Classification: B52; D03.


Keywords: Original Institutional Economics Behavioral Economics Thorstein Veblen Daniel Kahneman decision-making