Prof. Uskali Mäki: “Homo economicus, and the epistemic dynamics of its many lives”

Professor Uskali Mäki, philosopher of economics, Professor of Practical Philosophy, University of Helsinki, and Director of TINT — Centre for Philosophy of Social Science, asks higher order questions about modeling the economic agent: - Who is/are Homo economicus (HE)? - What is the point of having HE? - What does it mean for HE to evolve, and what determines this evolution? - Should economists leave HE behind, or keep HE on board? He shows how answers are not so simple as one might think: 1. There are different varieties of HE. They are models of the economic agent, that is, more or less accurate selections of the characteristics of Homo sapiens. 2. Empirical evidence alone does not determine the evolution of HE, or the choice of the right version. What also matters include methodological conventions (such as those of tractability and unification) and the purposes for which any HE model is used. 3. In choosing a version of HE, one must understand what is to be explained and in what context. Different versions of HE may have to be invoked depending on whether one seeks to explain individual consumer behavior or patterns of market demand, and on whether one focuses on competitive markets or some other sphere of social reality. 4. Scientific realism does not require completely realistic models. Depending on the purpose of using any HE model, it may be allowed to be unrealistic in various ways. 5. The functions of the as-if in modeling the economic agent are appropriately multifarious and often misunderstood. In the end, Professor Mäki argues for pluralism in the conception of HE: Different versions are suited to different contexts and different uses, and economists should tolerate many relatives in the HE family. About the Symposium: David M. Kreps Symposia comprise a series of symposia on topics of broad interest to the faculty of the Graduate School of Business. The series was created through the generous support of friends and alumni of the GSB, to…