Mindless or Mindful Economics: A Methodological Evaluation

In the first chapter, Faruk Gul and Wolfgang Pesesndorfer present how accounting for psychological and neurological theory is important in dealing with normative and positive economics. Both Gul and Pesendorfer have been able to give comments regarding certain methodological claims of experimental, behavioral, and neuroeconomists. It is important to note that Economics, according to Gul and Pesendorfer's observations, is not readily affected, let alone enhanced, by how neurology sets what goes on in the human brain and by how psychology accounts for what goes on in people's minds when they are undergoing decision-making processes. Not considering the successes and failures of Gul and Pesendorfer's studies, this chapter attempts to look into the argument that neuroeconomics and behavioral economics cannot produce sufficient evidence for the support and rejection of models in positive economics. Also, such concepts are believed to be irrelevant in terms of normative economics.