Smart Economic Decision-Making in a Complex World is a fresh and reality-based perspective on decision-making with significant implications for analysis, self-understanding and policy. The book examines the conditions under which smart people generate outcomes that improve their place of work, their household and society. Within this work, the curious reader will find interesting open questions on many fascinating areas of current economic debate, including, the role of realistic assumptions robust model building, understanding how and when non-neoclassical behavior is best practice, why the assumption of smart decision-makers is best to understand and explain our economies and societies, and under what conditions individuals can make the best possible choices for themselves and society at large.
Additional sections cover when and how efficiency is achieved, why inefficiencies can persist, when and how consumer welfare is maximized, and what benchmarks should be used to determine efficiency and rationality.
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Table of Contents
1. Introduction: Smart thinking in the real world of complexity2. The evolution of decision-making: Why institutions and capabilities matters
3. How complexity affects decision-making
4. Freedom of choice in a complex world
5. Understanding rational inefficiency: A scientific basis for economic failure and success
6. How consumers can achieve freedom of choice: When consumers are truly sovereign
7. Inside the black box of the firm: Why choice, power and preferences matter for productivity and efficiency
8. How smart people can be involuntarily employment when misguided policy dominates decision-making
9. Why financial literacy matters for socio-economic wellbeing
10. How labour markets really work
