Israel Kirzner on His Career as an Austrian Economist
Hayek Program Podcast
00:00
The Rationality Assumption in Microeconomics
An exchange which i had with garry becker in the early sixties, 19 62. He thought he was able to liberate economics from the rationality assumption. The rationality assumption means that people change their decisions on the basis of what they realize is the truth. And it's crucial for explaining why price tends to gravitate towards the intersection of supplying demancives. But this was a step thi was, i think, a significant step towards that realization.
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