Exploration of Economic Behavior and Rationality: integrating Behavioral Economics and Praxeology

Abstract

The purpose of this article is to present, delimit, and integrate the proposals of economic behavior and behavioral economics, including their axioms, heuristics, and biases, to advance research in this field. The article recommends applying first economic and then psychological issues, in that strict order, for epistemological, legal and practical reasons. Based on human action or praxeology, the process of economic decision making and doing is graphed, these in turn frame systems of thought with their different heuristics, the latter of which are the cause of systematic errors called biases.

Keywords

• Economic behaviour
• behavioural economics
• praxeology
• heuristics
• biases