Template-Type: ReDIF-Article 1.0
Author-Name: Rosolino A. Candela
Author-Email:
Author-Workplace-Name: George Mason University - Department of Economics
Author-Name: Richard E. Wagner
Author-Email:
Author-Workplace-Name: George Mason University - Department of Economics
Title: Vilfredo Pareto's Theory of Action: an Alternative to Behavioral Economics 
Abstract: In recent years the term behavioral economics has arisen in consequence of the growing effort of a
significant set of economists to import psychological methods and findings into economics. This body
of work issues strong challenges to the use economists have made of rationality in economics.
Unfortunately, this recent work illustrates unnecessary and misguided creativity. Vilfredo Pareto
explored the same analytical territory nearly a century ago, and to superior analytical effect. Pareto
recognized that the substantive content of action depends on the environment in which action occurs.
Some environments elicit logical action while other environments elicit non-logical action. Both
types of action are species of rationality, only they are recognizably different. In this paper we explain
why Pareto’s approach to human action points toward a superior analytical agenda than does the
present orientation of behavioral economics
Classification-JEL: B31; B41; D11 
Keywords: Vilfredo Pareto, logical vs non-logical action, rationality, behavioral economics 
Journal: Il Pensiero Economico Italiano
Pages: 15-29
Volume: 24
Issue: 2
Year: 2016
File-URL: http://www.libraweb.net/articoli.php?chiave=201606302&rivista=63
Handle: RePEc:pei:journl:v:24:y:2016:2:2:p:15-29