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Human Nature in Economic Theory

Journal of Political Economy 1922 30(3), 317-345 open access
One criticism brought against conscious economic theory is that it fails to take advised and realistic account of human nature. Economics is admitted to have a conception of human nature; but the root of the trouble seems to lie exactly in the fact that it is a conception-or, perhaps more accurately, a preconception. Its critics feel it to be inexact, unreal and without documentation or careful description; advanced, possibly, a step beyond the rigid classical homo economicus in the thinking of the marginists or corrected classicists of today, but still lacking the complex and irrational features of the human figure beginning to be bodied forth in the laboratories of the present generation of psychologists. These psychologists' have already pretty well revolutionized the scientific definition of human nature. Instead of a firm and