Kahneman's Tryst with Reasonableness: A Tease Unfulfilled?

Kahneman's critique of neoclassical rationality lay at the heart of his research program. He argued that rationality understood as temporal consistency among preferences and beliefs is inapt both as a descriptive and prescriptive standard of decision-making. Descriptively, consistency ignores high decision costs and biases, such as framing effects. Prescriptively, it is problematic since it neglects the processual nature of choice and the crucial role of regret. Instead Kahneman argued in favour of using reasonableness as a standard, although this concept was not fully developed in his work.

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