Bounded Rationality, Exit, and Social Justice

Here is Mark Pennington's fourth guest post for Pileus: Two of my posts earlier this week (here and here) focussed on the institutional implications of limited rationality. My claim was that robust institutions are those that minimise the consequence of inevitable human errors. In a nutshell, this is the Hayekian argument for the competitive ‘exit’ principle … Continue reading Bounded Rationality, Exit, and Social Justice